Dear Editor,
In an article in the Kaieteur news dated May 26th 2026 and captioned, “Pres. Ali defends foreign firms ‘flipping’ mining claims despite Guyana getting nothing from the deals” the reporter asked whether stronger policies are needed to ensure that Guyana benefits when companies transfer gold mines and pointed out that G2 Goldfields was selling its holdings for approximately US$2.2B.
It was obvious that the President was very disrespectful questioning the reporter asking her, ““Can you tell me how Guyana is not benefiting, give me one example”. Also, this is a ridiculous question as it was the president who should have informed this country in what ways it benefits because from an examination of the realities, very little.
Ali questioned the reporter about the company’s cost of exploration for the gold project and how much had been invested by the company, so that they could have gotten the market value of what asset they have. Mr. President was it the US$2.2 billion they received? I guess Mr. President, that our millions of ounces of gold are worth nothing. All we get is a measly 8%. And they leave us with a wrecked environment. All the profits are sent overseas.
Now let’s examine what happens in other sectors. One obtains a lease from the Land and Surveys Commission The land is developed, infrastructure built and when you transfer the fee is two Percent of the value. One purchases a land, builds a house and the transfer fee is 2.5% of the value. In addition, one has to pay capital gains if applicable. I know Guyanese who had to pay millions. This company sold for US$2.2 billion and paid nothing.
Apparently, the President believed we benefit indirectly, he says “Foreign investors are often better positioned to develop large-scale projects and that their investments have contributed significantly to the mining sector benefitting locals”. He asked the reporter to explain. However, it is the President who should have explained and give examples.
The President said the country is operating under global market standards. Well, let’s take a look. In the USA capital gains tax is paid when mining land is transferred. Long term 0-20%, Short term, a year or less, profits are taxed at the higher income tax brackets. In Canada, “profits from transferring are usually taxable as ordinary income. In some instance capital gains have to be paid and it ranges from 50% on the first 250,000 Canadian and 66,67% on gains exceeding this.
For corporations it is a flat 66.67. In Guyana we get zero but the President says he is operating in accordance to global standards.
The President then decided to point at the Granger Administration and asks if the reporter is aware of what took place in the mining sector between 2015 and 2020. “As a dear friend, are you aware of what took place in the forestry sector between 2015 and 2020 and in the mining sector?” According to the article the President said about 60% of the local miners’ assets and equipment were parked because operators could not operate.
From my knowledge I know the President did not have his facts right and I would advise him before he wax eloquently on issues, he should be briefed by his advisors. But what can I say when the advisors are picked because they are yes men how can they educate the president.
I decided to do some research and I produced a chart that gives an idea of production under the Granger and Irfan presidency. I collected data as best as I could from Google.
year | Small producers | Large producers | Total
2014 | | | 387508
2015 | | | 451,490
2016 | 429.188 | 212,480 | 641,668
2017 | 436,254 | 217,500 | 653,754
2018 | 392,416 | 220,657 | 613,073
1019 | 448,321 | 186,584 | 634,905
2020 | 485,551 | 99,882 | 585,433
2021 | 65% | | 500,000
2022 | | Troy closed | 486,000
2023 | | | 432,113
2224 | | | 434,067
2025 | | | 484,32
2026 | Target | | 510,450
The chart tells its own story. Production was much less before and after Granger which begs the question, smuggling? Well according to the PPP and its supporters Azzruddin is the one and only gold smuggler in Guyana. Now if he was smuggling before granger the smuggling stopped under Granger and it started back under PPP. But if Azzurddin is the only gold smuggler what happened after 2022 when production figures were low.
The chart also indicates that 65 to 70% of the gold is being produced by the small and medium scale miners, however, the big foreign ones are getting all sorts of incentives. Duty free importation of machinery, tax remission on heavy equipment, zero-rated value added tax (VAT) on mining supplies, flat or educed income tax rates. They benefit from reduced or zero-rated excise taxes on fuel. Well now everybody benefits from that.
So, while the small and medium scale miners produce most of the gold the big ones who produce less gets all the incentives.
I can understand why the President, who was catapulted into the presidency, does not hold press briefing. Our people should understand it is not just the President. The PPP leaders have become incompetent.
In addition, the leadership is blind to the hardship on the backs of the bottom 50% of the Guyanese people.