Gov’t signs MoU with Canadian company to develop hydro in Region Seven

Prime Minister, Samuel Hinds in the presence of Minister of Natural Resources and the Environment Robert Persaud, today signed a Memorandum of Understanding (MOU) with Canadian company Sandsprings Resources Incorporated and CM Power to deepen efforts in undertaking further feasibility studies and other measures to develop a 60 MW hydropower project on the Kurupung River, Region Seven.

CM Power is a company registered in Guyana which is affiliated with ETK Inc., both subsidiaries of Sandspring Resources. It intends to initiate operations at Toroparu where it has been developing a mineral property, utilising electrical generation equipment to convert hydropower generation through the development of Kurupung River Hydropower project (KRHP).

From left: Sir Shridat Ramphal, Adviser to Sandspring

Resources Inc., Rich Munson, CEO of the company,

Prime Minister Samuel Hinds, Minister of Natural

Resources Robert Persaud; Major General (Rtd)

Norman McLean, Advisor to Sandspring Resources,

and Ms. Morsha Johnson, of Office of the Prime Minister

Signing the MoU for the Government was Prime Minister Hinds and on behalf of Sandspring Resources Inc., was its Chief Executive Officer and Director, Rich Munson, at the Office of the Prime Minister.

Prime Minister Hinds explained that the MOU gives CM Power to maintain studying the project site and to expand plans to the level of an application for a licence to be approved.

“Along the way there will be of course an Environmental Impact Assessment to give opportunity to persons who may be involved or affected, to get them to know what is intended, to give them an opportunity to raise their concerns and to seek ways in which reasonable concerns may be ameliorated or mitigated,” he stated.

Sandspring Resources Chief Executive Officer Rich Munson lauded the prudence shown by the government in recognising that the successful implementation of mining operations will be enhanced by a stable power supply.

“Having an electrical power supply of this nature in Region 7 will certainly attract other industries, as well as other mining companies, so this is a very significant event obviously not only for Sandspring, but for Guyana also.”

Meanwhile Minister Persaud, in commenting on the Toroparu project said with a preliminary resource approximation of four million ounces of gold, it is a leading project that can adequately aid in developing Guyana’s natural resources.

He noted that the KRHP  is welcomed, especially from an environmental position and if completed, it would be a vehicle for  developing not only mining,  but new settlements and  agriculture.

Sandspring Resources was given permission to undertake feasibility studies for the KRHP near the Kumarau falls in December 2010.The site which was evaluated by the United Nations in the 1970s was deemed to have potential for hydropower development.

In 2012, CM power applied to the Government for a licence to further develop the project.