AFC’s Raphael Trotman lauds Govt for budget measures in mining sector

– but warns of “gold rush” causing environmental damage

Opposition Member of Parliament (MP) and Former Natural Resources Minister (NRM) Raphael Trotman on Monday commended the Government for various measures in the 2020 budget aimed at revitalising the extractive industries sector.
He was at the time kicking off the budget debates taking place at the Arthur Chung Conference Centre (ACCC). Trotman, who once oversaw the sector as Minister of Natural Resources under the former A Partnership for National Unity/Alliance For Change (APNU/AFC) Government, nevertheless sounded a note of caution.

“I take a moment to commend some of the emergency measures introduced to assist the forestry and mining sectors in these difficult COVID-19 times,” Trotman said.
“However, we must sound a note of caution. While we incentivise miners, we must be mindful of the environmental impact and Indigenous communities near to them.”
Citing the high price for gold, Trotman expressed fear that the measures could spark a gold rush. He, therefore, cautioned the Government to do the necessary monitoring to avoid this from happening.

“There is a moral hazard that is associated with these measures as gold is trending upwards of US$1900 per ounce, and is likely to go higher. Everyone will want to enter mining and this will exact a high cost for monitoring and regulating and for the environment. I would urge that these measures receive periodic reviews,” Trotman said.
Making good on an issue it campaigned on and criticised the former APNU/AFC Government for, the President Dr Irfaan Ali-led Government had rolled back the imposition of Value Added Tax (VAT) and duties on mining equipment.
President Ali himself had announced the measure at a press conference, ahead of last week’s presentation of the budget. In addition to the removal of VAT, Ali had announced that the Government will be granting tax concessions on All-Terrain Vehicles (ATVs) for persons who use them in the productive sectors.

“The removal of VAT and duties on machinery and equipment, to allow for the recapitalisation of key sectors, including mining, forestry, agriculture and manufacturing. We have also decided on the granting of tax concessions on ATVs for mining, forestry, agriculture and manufacturing,” Ali had said.
He added that this is another measure in the party’s manifesto, adding that it will bring immediate relief to the mining, forestry, agriculture and manufacturing sectors – all of which have been underperforming and all of which have been faced with tremendous difficulties under the previous Administration.
President Ali noted that these measures will be a boost, particularly to the agriculture, mining and agriculture sectors. He pointed out that current estimates have the mining sector at a 65 per cent productive capacity, owing to many miners downing tools and parking their equipment due to poor rates of return.
Public Works Minister Juan Edghill, who presented the $330 billion budget, had informed the house at the time that the measures for the extractive industries were arrived at after consultation with stakeholders.
Meanwhile, the budget debates continue today.