Mining Sector

Guyana’s mineral resources include bauxite, laterite, manganese, kaolin (clay), sand, gold, diamonds, radioactive minerals, copper, zinc, nickel and semi-precious stones. In addition to the General Incentives available for all new investments, firms in the mining sector are entitled to the following incentives:

Large Scale Mining of Gold and Precious Metals, Diamonds and Precious Stones

• Exemption of Customs Duty and Consumption Tax on all equipment, processing material and spares parts used in the process of surveying, prospecting and mining.
• Exemption of Customs Duty and Consumption Tax on outboard engines up to 75 HP; 5% duty over 75 HP.
• Exemption of all Customs Duty and Consumption Tax on vehicles imported exclusively for the production process.
• Preferential consumption tax rate of 10% on aviation fuel (CIF).
• Stability Clause: for each mine developed, these conditions will be maintained for a period of 15 years from the start of commercial production or the life of the deposit, whichever is shorter. Thereafter, the general rules for duties and taxes apply.
• There is a sliding scale for the royalty on gold:
  • 5% when the world price of gold is above US$285/ounce
  • 4% when the world price is between US$260 – US$285/ounce
  • 3% when the world price falls below US$260/ounce.

Bauxite and Other Non-Precious Minerals (Except Sand and Stone)

• Royalty for bauxite and other non-precious minerals is 1.5% of whichever is greater of gross revenues or production costs ex-factory. This compares to a royalty of 5% for precious metals and minerals.
• All other incentives are the same as for gold

Mining of Sand and Stone

• The royalty is 3% ad valorem

Medium and Small Scale Mining

• Exemption of Customs Duty and Consumption Tax for ATV vehicles, pumps, matting, dredge flexes and expanding metal.
• The royalty on diamonds for medium and small-scale mining is 3%, instead of the 5% for large enterprises. The royalty on gold is the same as for large-scale enterprises at 5%.
• Income tax: is 2% of gross revenue in lieu of income tax. However, if the permit holder is a body corporate, the corporate tax of 35% of taxable income applies.

Petroleum Exploration

• Withholding tax is waived.
• Exemption of Customs Duty and Consumption Tax on machinery, equipment, vehicles, materials, supplies, consumables (other than foodstuff and alcoholic beverages) and moveable property.
• The Consumption Tax is 10% on fuel instead of the normal rate of 35%

Read more on:

• General Incentives
• Special Incentives
• Sectoral Incentives