The Guyana Geology and Mines Commission (GGMC) has warned persons against buying mining lands through private arrangements, saying that Irrevocable Powers of Attorney (IPOAs), receipts and other private documents should not be treated as proof that a person legally owns or has the authority to transfer a mining property.
The warning comes as the Commission says the practice of persons selling, or attempting to sell, mining lands granted by the GGMC is now “seriously engaging” its attention.
In an advisory issued on Tuesday, the Commission reminded mining stakeholders and the public that mining lands and related tenures are granted for the specific purpose of carrying out mining activities, subject to Guyana’s laws, regulations and the conditions attached to those grants.
As such, tenure holders have been cautioned against selling, assigning or transferring mining lands where those transactions are not permitted under the relevant legal and regulatory framework.
Of particular concern to the Commission is the use of IPOAs in transactions involving mining properties.
“The GGMC is also discouraging the use of Irrevocable Powers of Attorney (IPOAs) as a means of effecting or facilitating the purported sale, transfer, or acquisition of mining lands,” the Commission said.
It stressed that an Irrevocable Power of Attorney, by itself, is not acceptable proof that someone owns or lawfully holds tenure over a mining property.
The GGMC is therefore urging persons considering the purchase or acquisition of an interest in mining lands to first verify the status of the property with the Commission before handing over money or signing agreements.
“Persons should not rely solely on private agreements, powers of attorney, receipts, or other instruments as evidence that an individual has the legal right to sell, transfer, or otherwise dispose of a mining property,” the Commission warned.
However, the GGMC noted that legitimate avenues remain available for miners, investors and other stakeholders who want to work together to develop mining properties.
It pointed to properly structured Joint Venture arrangements and other lawful mechanisms which can allow parties to collaborate in mining operations. Such arrangements, the Commission said, should be properly documented and submitted to the GGMC for consideration and approval.
The Commission said it will continue monitoring the issue and could take regulatory or other action where necessary to protect the integrity of the mining sector and prevent persons from becoming involved in unauthorised or irregular transactions.
The GGMC reiterated that mining lands granted for mining purposes should not be sold or purportedly sold, while IPOAs should not be regarded as proof of ownership or lawful tenure.
Persons considering transactions involving mining properties are being encouraged to seek clarification directly from the Commission before making financial commitments.edited 13:47
