GGDMA, Govt ink 2-year agreement for tax waivers on mining equipment, dredge spare parts

The People’s Progressive Party/Civic (PPP/C) Government has come in for high praises, with the Guyana Gold and Diamond Mining Association (GGDMA) lauding its support to the mining sector after signing a two-year agreement for tax waivers on spares for mining equipment and dredges.
It was announced in a statement from the GGDMA that a two-year Investment Development Agreement (IDA) had been signed on December 9, 2024, which would allow for incentives on vehicles and spares. Specifically, Value Added Tax (VAT) would be waived on spares for machinery used in mining, including dredges.
Additionally, VAT will be exempted for all industrial grease and hydraulic oils. According to the GGDMA, this will be applicable for miners who sell their gold directly to the Guyana Gold Board (GGB), though a further meeting between GGDMA and the Guyana Revenue Authority (GRA) will be necessary to discuss the requirements miners need to qualify for the incentive.
It was also announced that they have agreed on steps to address the labour shortages in the mining sector, the opening up of lands for small and medium-scale miners through Guyana Geology and Mines Commission (GGMC) lotteries, quarterly meetings between the Minister of Natural Resources and GGMC and for a mining direct portal between GGDMA, GGB, the Natural Resources Ministry and the GGMC.

GGDMA also noted that three new roads are being built to service the mining sector, as well as $2.2 billion in rehabilitation works currently being done by the GGMC on existing roads that include Toroparau to Kartuni Road, Kartuni to Cuyuni Road, and Toroparau to Makapa Road.
“The GGDMA is satisfied with the support given to the sector by the current Government, noting that several of the concessions that were returned to them since 2020 have been maintained and efforts are being made to expand benefits for miners. The GGDMA is committed to continue working with the Government to achieve joint goals for the sector and stamp out illicit activities that negatively impact the sector,” the statement said.
Meanwhile, challenges such as the recent shortage of mercury, which has seen the price skyrocket and some dealers exploiting the situation, were also raised. Other challenges in the forms of drought and labour shortages were also raised, with GGDMA President Ronaldo Aphonso noting that notwithstanding these challenges, the resolve of the miners remains stronger.
As a matter of fact, he noted the importance of the industry continuing its work to build a sustainable model. GGDMA administrator Avalon Jagnandan meanwhile reiterated their dedication to being effective representatives of the miners.
“The GGDMA remains steadfast in its commitment to advocating on behalf of our members. We will continue to actively engage with the Government of Guyana and all key stakeholders to ensure the interests of the mining community are protected and advanced,” Jagnandan said.
As part of its outreach efforts, the GGDMA hosts regular open days that provide miners with an opportunity to meet with the executive team, raise issues of concern, and seek assistance. Mr Jagnandan encouraged all miners to take advantage of these sessions, underscoring the Association’s open-door policy and commitment to addressing members’ needs.
The GGDMA’s 40th Annual General Meeting (AGM) was held at their headquarters, with the event also introducing a mini-exhibition, offering suppliers and service providers a platform to showcase their products and services to the mining community.
In August 2024, GGMC head, Newell Dennison reported a steady decline in gold declarations from 2016 to 2023, citing several contributing factors. However, he expressed optimism, noting that measures are in place to curb smuggling and increase production. Additionally, large-scale gold companies are preparing to begin production.
In addition to Omai, other large-scale foreign gold companies operating in Guyana are Goldsource Mines Inc which operates the Eagle Mountain Prospecting licence in Region Eight (Potaro/Siparuni), Reunion Gold which operates the Oko West gold project and Romanex Guyana Exploration Ltd (RGEL) which operates the Marudi Mountain Mining licence in Region Nine (Upper Takutu/Upper Essequibo). Together, Government is looking to have gold production reach over 1 million ounces by 2030.