– criteria for granting licences to be reviewed

MINISTER of Natural Resources and the Environment Mr Robert Persaud has expressed serious concerns with the low production level of the quarrying sector. Last month, quarry production was recorded at 50,197 tonnes compared to 52,360 tonnes for the corresponding period in 2013. Thus far for the month of February, the figures remain unsatisfactory.

Minister Persaud explained that the Government has a road programme of over $3B that requires a substantial amount of quarry materials. This is in addition to the sea and river defence projects and housing development (both in the public and private sectors).
“Many of the Government, as well as the private contractors are themselves complaining, and have reported of their inability to access the type and quantity of quarry products that they need,” he lamented.
Concerns have also been raised by stakeholders about pricing, but this is determined by the market. The ministry’s primary interest is to get quarry operators and producers to increase and improve their production which they had pledged to, at a meeting earlier this year. This was the basis on which they were granted licences to operate.
In January, Minister Persaud convened meetings with quarry, and sand and loam pit operators with the aim of advising them on projects and the projected level of materials that will be needed to satisfy the demand, so that they can structure their operations accordingly.
“We have been given the assurance by all the operators that they intended to not only maintain the 2013 level which was considerably higher than 2012, but also to increase and expand…but I am dissatisfied that operators are not responding, and not producing adequately to satisfy the demands, be it for roads or other areas of the construction sector,” the minister said.
Operators have submitted a number of reasons for the low production including: equipment failure, difficulties in clearing equipment spares, shortage of labour, and other logistical issues.
The ministry has since intervened, paving the way for operators to meet with officials from the Guyana Revenue Authority (GRA) to iron out some of the issues and to continue engaging them in discussions with a view to resolving this problem.
However, Minister Persaud said that much more could be done on the part of the operators. Against this backdrop, Cabinet has mandated that the conditions under which quarrying licences are granted, be reviewed to ensure that this resource is adequately utilised and that developmental projects are not held back as a result of poor production.
The ministry is also encouraging investors who are interested in quarrying to go into the Guyana Geology and Mines Commission (GGMC) to look at available areas.
Minister Persaud said that this will bring more players into the sector, and increase the competition. He also explained that if the issue of low production persists, then the country will have to go in the direction of importing stones, which a few contractors and operators are already doing.
“We have to put more stringent conditions to ensure that if people have this resource, they utilise it, and if they cannot utilise it, that they relinquish it so that it can be made available to others… we have vast resources in terms of quarry, so complaints about inadequate supply or availability should not be an issue,” the minister said.