THE Natural Resources Sector is anticipated to be another major contributor to economic transformation of this country over the next five years, Finance Minister, Dr. Ashni Singh said last Friday. Delivering his 2012 National Budget speech in Parliament last Friday, under the theme ‘Remaining on Course, United in Purpose, Prosperity for All’, he alluded to the extractive industries.
“While the gold and bauxite industries have already been referred to, a number of other extractive industries are also poised to become significant contributors to domestic productive output. These include oil and manganese along with other minerals, such as uranium and rare earths, which are at the initial exploration stages,” Singh said.
He recalled that, back in 2000, the United States (U.S.) Geological Survey ranked Guyana as having the second most attractive under-explored basin in the world, with a potential of 15.2 billion barrels of oil and, were a discovery to be made, production targets would be estimated at 50 million barrels per year, which would be equivalent to 140,000 barrels per day.
Over a decade later, he noted, the anticipated investments have been realised and the process of drilling commenced, referring to the offshore drilling rig Ocean Saratoga which lies just beyond local shores drilling the Eagle prospects, which have been identified by CGX Resources Inc. as having potential for discovery, while the Atwood Beacon is drilling the Jaguar prospects for a consortium led by Repsol.
In addition, the joint venture led by Esso will see continued exploration activity, including 3D seismic data acquisition, as they determine the merit for further exploration, which may include drilling, Singh said.
He said, in 2012, the sector will continue with offshore exploration drilling by Repsol and CGX, the coastal onshore and Rupununi activity is expected to continue and new venture interests are expected to result in licences being issued in the ultra-deep water offshore as well as nearer shore and on the basin fringe, all bringing with them the attendant forward linkage opportunities for growth in ancillary services.

Manganese
Touching on manganese, the Minister of Finance said, for nearly half a century, there have been indications of manganiferous ore between the Barima and Barama Rivers.
He said the Matthews Ridge manganese reserves have since been determined to be 2.6 million tonnes of crude ore and, depending on further work, this is anticipated to increase and new investments in the industry have resulted in Reunion Manganese Inc., a subsidiary of Reunion Gold, a Canadian traded company executing a mineral agreement with the Government of Guyana last year.
Since the start of their operations, Singh said some 35 holes have been drilled, so far, with continued drilling and sampling being the focus of the company’s feasibility study, to date.
“It is expected that, providing the feasibility study and investment programme are completed as projected, Guyana could witness the development of one of the largest manganese mines in the region, by 2013,” he forecast.
Singh said the operation has already seen over US$50 million invested and some 250 jobs created, while the development phase will see 1,000 jobs created and mature operations will create over 500 permanent jobs and generate total investment in excess of US$300 million.
In the area of uranium, the Finance Minister said there are three companies currently engaged in prospecting for radioactive minerals in Guyana.
He said Prometheus Resources of Canada is at the most advanced stage with drilling occurring in Kurupung, Middle Mazaruni area, noting that the company lists Guyana as one of three countries in South America that represent a promising new frontier for uranium exploration and development and, in July last year, reported 82 percent uranium recovery.
Further, two other companies are conducting reconnaissance surveys in the North West District and mid-western Guyana respectively, the Finance Minister reported.
“On another front, rare earth elements, which are a vital component in the electronics industry for such items as cell phones and other high technology applications, present a new opportunity for investment and, with industrial countries actively pursuing alternative sources, Guyana offers new terrain,” he said.
To this end, he disclosed that Government has invited expressions of interest for two locations, one in southern Guyana and the other in Middle Mazaruni, which is likely to give rise to the development of exploratory activity in the first instance and, subsequently, conditions permitting, extraction.