DUE to the increasing demand for building materials such as silica sand, loam and stone, Castle Point Incorporated plans to invest some US$292,000 (or GY$61 million) in a new viable and environmentally-compliant silica sand and loam mining operation at the Canal #2 backlands, West Bank Demerara (WBD), Region Three (Essequibo Islands-West Demerara).

A project summary was recently submitted to the Environmental Protection Agency (EPA) for review.

According to the project summary, there would be an annual operating cost of US$260,183 and the mine would produce approximately 200,000 tonnes of silica sand and 10,000 tonnes of loam per year for construction and industrial purposes over the life of the mine, according to a project summary.

Additionally, this project will provide permanent employment to one security officer, four truck drivers, two excavator operators, two front-end loader operators, and one bulldozer operator, totaling 10 permanent positions initially.

“… the proprietor plans to develop the area into a profitable silica sand and loam mining venture. Borehole data and previous work done has indicated a mineable resource estimate of approximately 14,219,034 tonnes of sand resources and 31,468 tonnes of loam resources,” the summary stated.

The property is located at the Canal# 2 backlands, WBD. approximately 23.49 kilometres (km southwest of Guyana’s capital city Georgetown, 20 km from the Demerara Harbour Bridge, and 13.83 km from the Demerara River.

Production will be seven days per week, 12 hours per day. The company expects to increase production significantly eventually.

“It should be noted however that periodically some amount of downtime is expected for maintenance and repairs. Mining will only take place during daylight hours,” the summary stated.

The company said it also discovered that there is a strong demand for sand or loam throughout the country, and suppliers are spread thin trying to keep up with demand.

“This steep rise in demand can be attributed to the government’s push to complete infrastructural projects in the near future and a thriving private construction sector. This demand is only expected to grow as the industry awaits an impending construction bloom as a result of the new oil and gas industry,” the company added.

The company expects that it would be able to satisfy some of the demand for construction materials through this new project.

Building on the progress made in 2022 through increased public and private investments, Guyana’s vibrant construction industry is expected to expand even further this year.

Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, during his presentation of Budget 2023 last week, said, “…latest estimates show that the construction sector grew by a very strong 26.3 per cent in 2022.

As was the case in 2021, this expansion is supported by intensified activity in the public and private sectors.”

Driven by further plans to invest heavily in the establishment and maintenance of critical infrastructure across the country, Dr. Singh also highlighted the local construction industry is projected to expand even further this year.

This growth, the Finance Minister said, can be linked to massive government investments in new and improved roads and bridges, housing developments, educational and health facilities, agriculture infrastructure, and private sector investment in the oil and gas and hospitality industries.