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New River Triangle debacle…Company says no investment if no assurance of Prospecting Licence
…also awaiting permission to build small airstrip
Muri Brasil Ventures Inc is defending the special clause in its Permission for Geographical and Geophysical Survey (PGGS) awarded by Natural Resources Minister, Robert Persaud, granting it the right to apply for a number of prospecting licences, saying that “it is normal.”
Natural Resources Minister, Robert Persaud
The company, yesterday, for the first time made a public pronouncement on the raging debate, following the disclosure that it has been given permission to survey 2.2 million acres of land in the controversial New River Triangle location.
In defending the clause that essentially assures it of receiving 18 prospecting licences for the area, the company said, “These kinds of exploration activities cost millions of US dollars, which can only be sourced as exploration investments from outside of Guyana…No such investments would be available if the investor is given no assurance that he will be granted prospecting licences.”
The Company argued that it is the investor taking a risk and if he/she is not assured of a potential return, investment capital will dry up and so will Guyana’s mining industry.
In defending its PGGS, Muri argued that for a prospecting licence to be granted, a work programme and financial and technical capabilities have to be proved.
It sought to argue further that a prospecting licence does not necessarily lead to a mining licence because minerals in commercial quantities may not be available.
No Exploration
The company pointed out too that exploration activities have not commenced because permission is being awaited for the construction of a small airstrip to facilitate the airborne aspect of the survey, but “other research activities have taken place.”
With regards to the receipt of permission from Minister Persaud, the company said that it responded to a publication dated March 20, 2012, which invited proposals for exploration of rare earth elements in the area of Muri Mountain.
The company was given permission to survey for seven types of minerals in South East Berbice which was granted on November 7, 2012.
This it said was advertised in the Official Gazette, inviting objections and “none was received so far as is known by the Company.”
In defending the fact that the company was given permission to survey for seven different minerals, rather than a single one, it said the Mining Act permits the Guyana Geology and Mines Commission (GGMC) to issue permits or licences over the same area to different persons for different minerals.
It argued that “potential permittees usually seek to have multiple minerals included in their permits to avoid another person obtaining a permit for a different mineral within the areas covered by their permits as a matter of exploration strategy and to prevent conflict.”
2.2 million acres
Defending the size of the area for which it has been granted permission to survey, the company maintains “this area is for exploration not occupation or prospecting.”
It said that the PGGS provides that the area is reduced by one quarter at the end of every year for its life of three years, “so that at the end of the three years only 25 percent of the original area remains.”
It also stated that the area for a prospecting licence is an average of 12,000 acres so that 18 prospecting licences will extend over about 216,000 acres.
The company said, too, that from prospecting licence to mining licence “takes several years and to obtain a mining licence involves stringent conditions including environmental impact assessment studies.”
Seeking to defend the transparency of the project, the company drew reference to the fact that a report in one section of the media pointed to a statement by the Minister of Finance, Dr. Ashni Singh, in which he indicated Government’s intention to grant mining licences and permits in the area of South East Berbice.
“The Government has been committed to promoting these activities, so the PGGS cannot be characterized as a whim or secret deal by the Minister when clearly the Cabinet and Government are behind the PGGS.”
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