Ramotar eyes mega mining projects

Dec 06, 2012 News

…says strength of economy his biggest achievement

…seeks ‘stability’ in Parliament

With a Parliamentary clamp on spending in some areas, and the Parliamentary agenda having no firm foot, President Donald Ramotar’s first year in office has been less than smooth.
But investment prospects have him breathing optimism for his next year in office and beyond.

President Donald Ramotar

President Ramotar is looking to mega operations in the gold, bauxite and manganese to solidify the strength of the economy and keeping it on the growth path.
“We have kept out economy going in a hostile and unfriendly international environment…and in a local situation where we have not been getting the full cooperation of the other political forces within the society.
“So that is a remarkable achievement by any standard,” Ramotar told Kaieteur News in an interview.
Ramotar said that Reunion Manganese, which is developing an area near an abandoned mine at Matthews Ridge, could begin commercial operations next year.
In September 2010, the Company, through its wholly owned subsidiary, Reunion Manganese Inc., was awarded by the Government of Guyana four prospecting licenses (PLs) to conduct exploration and development activities for manganese in the North West District of Guyana.
The PLs cover an area of 45,729 acres and are centered in and on the abandoned manganese mine at Matthews Ridge and Pipiani which was operated by a subsidiary of Union Carbide Corporation from 1962 to 1968. In excess of 1.66 million tonnes of manganese concentrate were shipped from the mine site during that period.
In addition, he is looking to the commencement of operation of the Aurora mine by Guyana Goldfields which is estimated to hold over six and a half million ounces of gold.
Ramotar said he is pinning hopes too on new bauxite operations at Bonasika, where a feasibility has confirmed the economic viability of an operation based on sequential mining of two bauxite deposits over a mine life of 36 years, and the construction of a washing plant facility, a sintering plant, and load out facilities,  at Sand Hills.
Ramotar is optimistic that these projects, together with continued growth in other sectors, could help sustain the economy.
Recently, the International Monetary Fund (IMF) noted that Guyana recorded another year of robust growth in 2011 supported by favorable external conditions, lifting foreign direct investment and low inflation.
Following general elections in November 2011 the political situation, though largely stable, became more complicated, “but investor interest has remained strong and confidence generally positive.”
Real gross domestic product grew by 2.8 percent in the first half of 2012, particularly driven by strong performances in such sectors as mining and quarrying, wholesale and retail trade, and transport services, and notwithstanding a shortfall in sugar production, the Ministry of Finance had reported.
For the first half of 2011, export earnings grew by 9.2 percent to US$582.1 million, compared with the US$533.2 million registered in June 2011. This primarily reflected higher export receipts from the mining sector.
Ramotar said that dealing with the combined opposition, which holds the majority in Parliament, has been an “uphill struggle,” but “we’ve still been getting good investments.”
He said that the opposition seems to have become “intoxicated” with its one-seat majority in the House.
“Instead of working together so that we can accelerate the country faster, they seem more interested in digging in their heels trying to get control,” he stated.
“It has not been easy working in the Parliament, largely because they wanted to grandstand and show some of their hardcore supporters that they have some power,” he added.
However, Ramotar hopes for more stability in the coming year.
“I think that hopefully this first year in parliament we can settle down to work together.”