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15 Aug, 24

Application for Prospecting License

Roger

Overview

This permit grants rights for prospecting activities in areas ranging from 500 to 12,800 acres, allowing the holder to explore for mineral occurrences within the designated area. Once an application is submitted along with its detailed work program, budget, and demonstration of financial and technical capabilities, it undergoes an initial review to ensure compliance with all requirements before passing through a comprehensive vetting process. The application is then forwarded for approval by the Board and the Minister, after which it is published in the Official Gazette. Following publication, the applicant must submit the required rental and bond payments, after which the signing and official issuance of the permit take place, granting the holder legal authorization to commence prospecting operations.

Requirements

An application for a Prospecting Licence consists of the following elements:

  1. Filling out the prescribed 5D Form (Application for Prospecting Licence)
  2. Payment of the application fee of US$100 or equivalent in Guyana currency per application
  3. Work Programme, Scheduling Chart, and Budget for the first year’s activities
  4. Map and coordinate-referenced description of the area of interest
  5. Proof of financial and technical capabilities
  6. Registration or Incorporation documents if the applicant is a company
  7. Individuals to submit valid identification (Identification Card/Passport/New Driver’s Licence), proof of address (Utility bills, etc., obtained within the last 6 months) and TIN Certificate

Procedure

  1. AO accepts applications and reviews documents received.
  2. AO enters the application into IMAPS and generates an invoice for customer payment at the cashier.
  3. Application documents are registered, scanned and uploaded into IMAPS 
  4. AO forwards the application to the Cartographic Section for verification.
  5. The GIS Officer makes a recommendation for the next action.
  6. Upon return of the application from the Cartographic Section, AO forwards the application to the Geological Services Division (GSD) for review through the LAM.
    NB. The GSD is responsible for vetting the application to ensure the Work Programme and Budget are realistic and achievable, and that requisite financing is available.
    1. If the requirements are satisfied, the application is returned to the LMD with an approved summary to be tabled to the BOD. This summary includes the recommendation of the GSD and must be signed by the MGS and the Commissioner.
    2. If all requirements are not satisfied, the applicant is advised in writing. Such notice is prepared by the AO and must specify the period within same shall be remedied.
  7. Providing condition at 6(a) is met, the application is forwarded to the BOD for approval.
    1. If the BOD approves the application, the designated Clerk prepares ITG for publication.
    2. If the BOD does not approve the application, the applicant is informed of the decision in writing.
  8. In the case of 7(a), ITG is prepared by the designated Clerk and sent for review by the AA/SAA Registry and GIS Officer. ITG is endorsed by the GIS Officer and returned to the Registry Unit. 
  9. AA/SAA Registry forwards ITG to AO Clerical for recommendation.
  10. ITG is sent for publication in the Official Gazette, and a period of 21 days from the date of Publication is given for objections by the general public.
  11. Following a period of no objection, a letter is prepared for the Commissioner’s signature seeking approval of the subject Minister in keeping with Section 30 (1) of the Mining Act, 1989.
    1. If the application is approved by the subject Minister, an invoice is prepared for payment of the rental and work performance bond and the applicant is notified.
    2. If the application is not approved by the subject Minister, the applicant is notified in writing.
  12. Applicant makes payment for the rental and work performance bond.  
  13. Licence is prepared by AO and reviewed by the GSD
  14. The applicant is notified to visit the LMD for the signing of the Licence
  15. LAM does an overall review of the application and the licence prepared 
  16. Licence is  forwarded for the signature of the Chairman, BOD, while the Commissioner signs as the recording Licence
  17. Applicant is advised in writing to uplift the Licence
  18. Applicant uplifts Licence
    NB: A duplicate is kept by the Commission, which must be signed by the applicant upon receipt of the original.
  19. Records and databases are updated by AO/Designated Cartographic staff to reflect the issuance of PL. 

 

Rental rates are: US$0.50 per acre for the first year; US$0.60 for the second year, and US$1.00 for the third year. Performance Bond is equivalent to 10% of the approved budget for the respective year. The term of the Prospecting Licence is for three years, with two rights of renewal of one year each. The Mining Act 1989 stipulates that three months before each anniversary date of the licence, a Work Program and Budget for the following year must be presented for approval to undertake the work during that year. The obligations of the licensee include quarterly technical reports on its activities and an audited financial statement to be submitted by June 30 of the following year for the previous year’s expenditure. Should the licensee relinquish part or all of the Prospecting Licence area, then he is required to submit an evaluation report on the work undertaken therein. Prospecting Licence properties are subject to ad hoc monitoring visits by technical staff of the GGMC. It is the applicant’s ONUS to select the area of interest; this will be based, principally, on availability and good geological prospectivity. At any time during the Prospecting Licence, and for any part or all of the Prospecting Licence area, the licensee may apply for a Mining Licence. This application will consist of a Positive Feasibility Study, Mine Plan, an Environmental Impact Statement and an Environmental Management Plan. Rental for a Mining Licence is currently fixed at US$5.00 per acre per year, and the licence is usually granted for twenty years or the life of the deposit, whichever is shorter; renewals are possible.