There will be tighter regulation and scrutiny and regulation of the local mining sector. Energy Minister Nicole Olivierre said there will be a strengthening of revenue collection systems and the authorities will continue to clamp down in illegal quarrying.
The sector was the focus of attention on Wednesday when the T&T Extractive Industries Transparency Initiative (TTEITI) held a public outreach in Sangre Grande.
In the keynote address at that forum, Olivierre expressed concern that only $18.5 million in royalties was collected between 2003 and 2015.
Describing this as “clearly inadequate given the scale of the mining sector”, minister said a 2014 Green Paper on Minerals Policy alluded to under-reporting of production and royalty payments from the sector.
“The paper revealed that between 2001 and 2013 only 10 per cent of the royalties due were collected,” she said.
This represented a loss of revenue to the State of approximately $120 million in royalty payments, not including loss of revenue from royalties for production not accounted for and from illegal quarrying, as well as revenues from taxes, Business Levy and Green Fund Levy for the period 2001 to 2013.
“We must reverse this trend in the mining sector and quickly; especially given the details on our financial position laid bare by the Minister of Finance two weeks ago during the mid-year review of the economy,” Olivierre said.
She said the new Minerals Act Regulations gives the Energy Ministry greater powers to oversee the sector and ensure that companies pay their just due.
“ Having structured regulatory oversight of the mining sector could only benefit the country and by extension residents of our North Eastern communities, especially as it relates to generating revenue from the sector, and the extractive companies themselves,” the minister said.
“Now that the Ministry is armed with new regulations, we must find the means and the strength to apply these regulations; continue to clamp down on illegal quarrying and ensure that we get our just revenues from the 42 licensed operators in the sector.
“We would be cheating the citizens and the government by allowing business as usual and not trying to progressively monitor this important sector and force compliance.”
Olivierre noted models suggested by the EITI which she said could “add another layer of audit and assurance to reporting on our mining sector revenues.”
She said she supported the TTEITI’s work and welcomed its playing a role in promoting reforms.
The group will soon be embarking on a pilot study to begin reporting on revenues from some of the larger mining companies.
Olivierre said: “In the long term, it is only right for us to enshrine the EITI in the legislative framework of the country and I am currently reviewing the Draft EITI Agency Bill before it goes to Cabinet and is exposed to public consultation and then to Parliament.
“I pledge my support for this legislation because it would lead to better monitoring of our extractive sectors (oil, gas and mining).
“Mining companies need not be afraid of EITI implementation. This initiative provides extra assurance for your companies, my Ministry and the citizens of the North East and the wider citizenry. We must never look at the future with eyes of fear.”