Mines Commission responds to AFC …Nothing stops any local, foreign companies from getting mining concessions – GGMC
June 7, 2013, By KNews, Filed Under News, Source
The Guyana Geology and Mines Commission (GGMC) has defended its decision to grant two Prospecting Licences (PLs) to explore for gold in North West District, Region One, to an Indian-based company with alleged close ties with the government.
GGMC said that Surendra Mines Guyana Inc., a local subsidiary of Surendra Engineering Corporation Limited, met all the mandatory requirements with no public objections made during the processing stage.
On Wednesday, the Alliance For Change (AFC) questioned the PLs which were approved in March, and said that the relationship between government and Surendra seemed suspicious. The company has been granted a number of critical contracts from government. These included the US$12.5M sugar packaging plant at Enmore, East Coast Demerara; a US$4M order for over a dozen drainage pumps; a US$19M contract for the Specialty Hospital and contracts to supply parts for the Guyana Sugar Corporation (GuySuCo).
AFC Leader Khemraj Ramjattan on Wednesday said that despite little or no experience in the areas regarding the contracts, the company was still granted contracts, raising questions whether the company was a “favourite” of the administration. GuySuCo has reportedly blacklisted Surendra from future contracts.
AFC also pointed out that in the cases of the contracts, Minister Robert Persaud was involved at Agriculture Ministry and now at the Natural Resources Ministry.
But yesterday, GGMC which is charged with overseeing mining, made it clear that there is nothing barring any companies, local and overseas, or locals from applying.
“After satisfactory submission of the required documents the application is processed and, if recommended will be sent to the official gazette for publication. If there are no objections to the grant then ministerial approval is sought,” GGMC said in a statement.
Surendra Mines, according to the Commission, applied on March 2, 2012 and was granted two licences to conduct prospecting activities on March 4 of this year. This was after the routine due diligence checks that are conducted for all applications. On April 5, 2012, the GGMC’s Board of Directors approved the applications and it was published in the Gazette seven months later on November 10.
After receiving no objections, clarifications or comments, the two Prospecting Licences were granted on March 4, 2013.
“The term of the Prospecting Licence is for three years, with two rights of renewal of one year each. The Mining Act 1989 stipulates that three months prior to each anniversary date of licence, a work programme and budget for the following year must be presented for approval for the work to be undertaken during the following year,” GGMC explained.
The Ministry said it has, in the interest of accountability and transparency, advertised the list of applications for Prospecting Licences, Mining Permits and Prospecting Permits Medium Scale. The Prospecting Licence’s application for Surendra Mines Guyana Inc was even contained in full page advertisements including the Kaieteur News on July 13, 2012, GGMC said.
“This was done to receive any objections or comments. None were received. Additionally, the list was also circulated to the media on July 12, 2012. Further, the granting of a Prospecting Licence is not a licence to mine but rather to prospect before consideration to grant approval for mining.”
GGMC insisted that there is no secrecy and said that the process is open for review for any stakeholders.
“Further, the Government through the Ministry of Natural Resources and the Environment also subscribed to the Extractive Industries Transparency Initiative to have a high level of standard and transparency in the operation of the mining sector. We reject any insinuations on the granting of this or any Prospecting Licence.”
