Gold mining sector experienced significant growth over last five years

Long before the emergence of Guyana’s oil industry, the gold-mining sector thrived and was a key pillar of the national economy.

This did not occur by accident; It took strategic policies and significant government investments, which have resulted in a remarkable improvement in the industry.

Reduction in Taxes

Within the past five years, the government slashed several taxes to cushion price hikes within the mining sector.

In 2022, Vice President Dr. Bharrat Jagdeo announced a tax cut for miners, reducing it from 3.5% to 2.5%, amounting to a total of $1.4 billion that was returned to the industry.

To further provide relief to miners, an additional 10 per cent in Tributors Tax was deducted. This is a unique form of income tax that is only applicable to the mining industry.

Additionally, the 14 per cent Value Added Tax (VAT) on mining equipment and lubricating oil were completely removed. These items are essential to the sector.

The cumulative tax reductions were geared to provide relief to miners, and many have testified that they did.

Reduction in Illegal Mining

Noticeable improvements within the sector also include the significant decrease in illegal mining practices.

This is a direct result of the Ministry of Natural Resources ramping up the distribution of concessions to small and medium-scale miners. The run-off effect was that it reduced the number of times that freelance prospectors were accused of encroaching on the properties of other stakeholders.

Investors Creating Jobs in Mining Sector

The US$1.5 billion Oko West Gold Project by G Mining Ventures Guyana Inc. will boost the mining industry with an expected production of over 350,000 ounces of gold annually.

The company, which is expected to begin operations in 2027, is employing 1,700 workers to construct the mines and an additional 1,500 workers are needed to carry out the mining operations.

This will create employment for thousands of citizens, sparking further economic growth within the sector.

Meanwhile, Minister of Natural Resources Vickram Bharrat, along with officials from the Guyana Geology and Mines Commission (GGMC), have been actively engaging with miners across the country, addressing their concerns while providing solutions to the issues affecting them.

The changes in the mining sector over the years match the promises made in the PPP/C’s 2020 manifesto, which details improvements for mining.