BK embroiled with GGMC over License expansion

Sep 12, 2013 News

BK International is accusing the Guyana Geology and Mines Commission (GGMC) for delaying the growth and expansion of the company by not responding to its application for a license to increase its Quarry reserve.
BK’s Chief Executive Officer, Brian Tiwarie, on Tuesday said, “We have applied to expand our quarry operations at the GGMC since last year; we have not even got a response from GGMC to date. Whether they would do it, whether they would need a new quarry, whether they would allow us to expand… We are still waiting. We have the financial resources; we have the capacity to expand our business.”
He then released the letter his company penned to the GGMC. In the said document BK stated, “The increasing demand for massive infrastructural development in the country, sharp increase in housing and commercial construction and export demand for crushed aggregates from Guyana are the factors attributed to the increasing demand for stone and hence the need for expansion.
“It is in the light of this impending situation that BK Quarries Inc. is hereby seeking to secure a new license so that reserves may be established and production ensured.”
According to Tiwarie, “We are trying to do everything possible that we could do with stone but we need the support from GGMC so that we can expand our business.”
Rickford Vieira, the Commissioner of GGMC, said that the licence was issued to BK International since 2007, but with respect to the granting of expansions, that would be impossible since the lands that would have to be allocated for expansions are being leased to another entity. “As such we (GGMC) never got clearance from Guyana Lands and Survey Commission to grant an expansion for the licence.”
Vieira added that a meeting was held with BK International explaining why the expansion was not given.
However, Tiwarie denied that there was any meeting. Further. He produced a copy of the document that seemed to suggest that the lease to the other entity was granted in 2010 but there was a flaw. The document appeared to seek to make the licence retroactive to 2003, which is highly irregular.
The Flip Side
BK’s contention comes at the time when the company is not getting enough local sales for ‘granite stones, even though the general consensus among some contractors is that there seems to be an apparent lack of stone available for purchase.
But those making the claim could not name one contractor who sought to acquire stone from BK International who did not secure supplies according to his request.
With the limited market avenues being presented to BK for crushed granite the company is contemplating the option to have their granite stones exported to clear off the stock pile that it has accumulated. However the company reported that it is giving preference to the local market and as such has not taken a decision to export stones.
“We are giving up to this month end. If by this month end we see that they are not taking off the stone, then we will ship it out because we have an order for 50,000 tons per month to head to Trinidad where a Brazilian company is doing a huge highway in Trinidad.
“We are now signing a memorandum of understanding (MOU) to have the 50,000 tons delivered with our ships.”
This also comes in the wake of the market currently being supplied with slate stones by Gafsons Industry, a type of stone that BK has quantified as being inferior.

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