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Gov’t decides to consult on 3% less buying price for gold in early 2017

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Moves are being made ensure that the Guyana Gold Board is transitioned into the role of Regulator and diminish its role as a purchaser of gold says Natural Resources Minister Raphael Trotman.

The Guyana Gold and Diamond Miners Association (GGDMA) and the Guyana Women Miner’s Organisation (GWMO) previously says it refused the “idiotic” proposal to force local gold miners to accept 3% less than the world market price. “No miner, under any circumstance will support this proposal. Our two associations are united in this position” the bodies said.

According to the Minister, Government has recognised that some changes are needed in the regulation and management of the industry. He said upon assuming office in 2015 it was recognised that the Guyana Gold Board had over a number of years, amassed a deficit of more than GY$9B. This was an untenable situation which cannot be allowed to continue says, Trotman.

Until such a decision is taken, the gold board will more than likely be buying the precious metal at 3% less from the price being offered on the international market.

Minister Trotman said early 2017, the adjustment in those rates will have to be made and as such his ministry will be engaging the Guyana Women Miners Organisation (GWMO), the Guyana Gold and Diamond Miners Association (GGDMA) and also the Gold dealers on the matter.

“If it is that the Board will be doing less buying, our need to go after that (3% less than market price) rate may be diminished, but the dealers may say they should be given a rate that will give them the ability to earn a commission,” said Minister Trotman.

The Natural Resources Minister justified Government’s position saying that when “you buy gold at what is known as the London fixed, which is the trading price, you are buying at a loss.”

On the issue of gold smuggling, Trotman said at this time he wouldn’t wish to “hazard a guess” on the amount of gold that is being smuggled across the country’s porous borders.

However, he said the Ministry of Public Security is spearheading anti-smuggling activities as the Natural Resources Ministry would assist in this regard.“Our business is about getting the gold out of the ground in a sustainable manner and government gets its royalties” he added.

Gold declarations are reported at 690,000 ounces and are being attributed to small and medium scale miners who delivered the majority of this gold along with the two larger companies Guyana Goldfields and Troy Resources.

Trotman said, “higher declarations are as a result of both governments’ policy of cutting back and restricting and interdicting of smuggling and of course enhancing the activities in the mining districts.”

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