New River Triangle Debacle…Muri Brasil pulls out of PGGS

Jan 05, 2014 News

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…claims hostility to proposed survey

Muri Brasil Ventures Incorporated has announced that on December 30, 2013, it made a decision to no longer pursue its exploration activities under the Permission for Geographical and Geophysical Surveys (PGGS) granted by the Guyana Geology and Mines Commission (GGMC).
The company yesterday made public its decision saying that although the process was legal and transparent, “this decision is due to the misinformation, prejudice and hostility to this proposed survey by persons and agencies which are fostering an adverse investment climate in Guyana.”

The news comes days after Public Works Minister Robeson Benn had confirmed that the Ministry denied permission to the company for the construction of an airstrip.
Muri had previously announced that it was awaiting permission from the Ministry to build an airstrip to facilitate its aerial surveys.
Benn had told media operatives that an application was made for an airstrip in the New River Triangle area and approval had not been granted.
He was adamant that the refusal of the permission for the airstrip had nothing to do with the imbroglio in the press over the company and the terms of its agreement.
Ever since it was discovered that Minister Robert Persaud had authorized granting the PGGS, several commentators had come out in condemnation and called for it to be recalled.
Minister Benn was asked if refusing permission for the airstrip was not a backdoor approach to ending the PGGS to which he responded that this was not the case.
He said the application had been made long before the disputation in the press over the company and its PGGS.
Benn said that as it relates to his Ministry’s decision, it was a question of whether there is really need for an airstrip in the area and also whether it would present additional difficulties in terms of security and oversight.
Critics of the PGGS had called it a threat to national security.
Eminent commentator Christopher Ram had exposed the details of the PGGS which he said all but guaranteed Muri Brasil Ventures Inc 18 prospecting licences when the survey was completed.
He had also accused the company of misleading the nation with regards to the amount of land to which it will have access for mining when its exploration activities would have been completed.
In a statement issued by the company in an attempt to clear the air, it had said “Much has been made of the fact that the area covered by the PGGS is some 2 million acres. This area is for exploration not occupation or prospecting. Also 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.”
According to Ram, who made his views known through his chrisram.net outlet “That is incorrect.”
Ram said that under a clause titled ‘Relinquishment’, is stated that: “On or before the first anniversary, the permission-holder shall relinquish at least 25 per cent of the said area after the first year.”

He said that there is no commitment for any other year and that the Permission is for a period of thirty-six months.
“Where then is the Maths that 25 per cent will remain after three years? Unless the company has been given some private assurances by the Minister, after three years the concession goes under the clause that states: There shall be no extension or renewal of the terms and conditions of this Permission.”
Ram said that by now, the company should have indicated whether it has given up “at least twenty-five percent of the said area after the first year.”
This was never done.
He reminded that the company states 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.
According to Ram, “This is and was no doubt meant to mislead.”
He pointed to Section 33 of the Mining Act which clearly states that a prospecting licence may be issued over several parcels, which are themselves subject to two extensions.
“There is no limit to the number of parcels over which a licence can be issued.”
He had also alleged that “the company is apolitical.
He said that surely, it is public knowledge that Yucatan Reis, one of its directors, worked closely with Minister Robert Persaud during the 2011 General Elections campaign.
Ram said, too, that “his fellow director (Dean Hassan) never misses an opportunity to boast of his connections and influence over the politicians including the Prime Minister and at least one security agency.”
The Muri debacle had sparked a livid public debate as to the Government’s policy on mining in the disputed area.
The military has traditionally warned against mining in the area but Government’s chief spokesperson, Dr. Roger Luncheon had said that the army has no say in making the decision.

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