–private project to create 50 direct jobs during construction, operationalisation phases

COGNISANT of the growing demand for construction materials, a local company, Nand Persaud & Company Limited, plans to invest some $215 million to set up a laterite mining operation in Region Six (East Berbice–Corentyne).

A project summary of this 3,600-acre multimillion-dollar operation was recently submitted to the Environmental Protection Agency (EPA) for review.
Laterite is both a soil and a rock type rich in iron and aluminum and is commonly found in hot and wet tropical areas. Nearly all laterites are of rusty-red coloration because of high iron oxide content.

To capitalise on the market for this resource, the investor will be setting up as a modern, open pit mining project with mechanised excavation, loading and hauling operations. There will be an on-site complex where accommodation, administration, storage, maintenance, and other necessary infrastructure will be established.

With Guyana’s current construction boom and several major projects being undertaken by the government and private investors in the region, Nand Persaud & Company Limited saw it fit to set up the operations which would allow for easier and less costly access to important construction materials.

As it is now, those materials are being sourced from areas along the Essequibo and Demerara Rivers to supply the demand in Berbice.

“There are also numerous private sector developments related to the Oil and Gas sector, such as the CGX shore base being developed on crab island. Presently, there are no formal, organised, reliable open pit mines in Berbice to supply the necessary fill material for these various construction projects,” the company’s project summary read.

The developer estimates the current demand for fill material to be approximately 50,000 tonnes per year. This is a conservative estimate and it is expected that demand will be increasing consistently over the next few years as the oil and gas sector expands and drives national development.

Given major developments planned for Berbice, inclusive of several shore bases, and the Guyana–Suriname Bridge, there is a definite need for the establishment of adequate mines in Berbice to support these construction projects with fill material.

The area selected has several favorable factors for development, such as accessibility by sizeable vessels and adequate resources for extraction.

According to the company’s project summary, consumers are paying between $5,000 and $7,000 per tonne of fill material. And based on the company’s business model, the expected cost of production should be reduced and the benefit of lower retail prices be passed on to consumers. The majority of consumers for the materials would be in central Berbice and its environs.

The potential for sand, loam and laterite in this area is well known, as there are several small, informal operations in the vicinity which are extracting these types of fill materials.

Not only will this operation satisfy the market demand for fill material, but it will also create employment. According to the project summary, 30 jobs will be created during the construction phase and 20 persons will be employed when the project is operationalised.

The company’s plan is to hire local persons, including women, based on their experience and skills to support the construction, operational, and closure phases of the project
The mine is being developed with an expected economic life span of at least 10 years. This life span is based on the extraction of reserves both above and below nominal elevation.

The company will be the owner and operator of all aspects of the operation within the mining permits, under the supervision of the Guyana Geology and Mines Commission and other regulatory agencies.

It is estimated that the project will have a payback period of three years. A rough estimate based on available surface models and other indicative data places the reserves at approximately 500,000 tonnes.

The applicant is proposing to develop a production line that will output approximately 50,000 tonnes combined of loam, sand and laterite per year for the first 10 years of the project’s life span.