Muri Brasil Ventures Inc said there was nothing opaque about its deal with the Natural Resources Ministry to gain Permission for Geographical and Geophysical Survey (PGGS).It also clarified that it is a local company and not Brazilian and that it was encouraged to apply for the PGGS following an advertisement by the administration.
Approximately one week ago, the PGGS document signed between the Guyana Geology and Mines Commission and Muri Brasil Ventures Inc was leaked to the press, sparking controversy, as Natural Resources and Environment Minister Robert Persaud was accused of withholding information – an allegation he has denied.
The minister was among signatories, for the PGGS, which was issued on November 7, 2012 for several types of minerals in the New River area in south-east Berbice.
The opposition and the Guyana Human Rights Association (GHRA) claim that the minister misled them on questions concerning the PGGS. In a two-page press statement, Muri Brasil Ventures Inc, firstly, dispelled what it said is a misconception that it is a Brazilian-registered entity, clarifying it was registered in Guyana under the Companies Act, with Guyanese shareholders and directors.
The company was reportedly encouraged to apply for the PGGS following the publication of an invitation for the exploration of rare earth elements in the Muri Mountain area in March 20, 2012.
“Exploration activities have not commenced, because permission is being awaited for the construction of a small airstrip to facilitate the airborne aspect of the survey. Other research activities have taken place,” the company pointed out.
Prospecting licences
The clause within the PGGS that paves the way for the granting of, at least, 18 prospecting licences is the main bone of contention, since the Natural Resources Ministry had indicated that no mining activity was being done in the New River Triangle.
“These kinds of exploration activities cost millions of U.S. dollars, which can only be sourced as exploration investments from outside of Guyana. No such investments would be available if the investor is given no assurance that he will be granted prospecting licences. The investor takes a risk. If he or she is not assured of a potential return, investment capital will dry up and so will Guyana’s mining industry,” Muri Brasil Ventures Inc explained.
According to the company, constant exploration activities are essential to accelerate the mining industry.
However, before a prospecting licence is issued, a work programme and financial and technical capabilities of a company must be supplied.
Unfounded
A PGGS is qualitatively different from a mining permit, Muri Brasil Ventures Inc stressed, as it alluded to the Mining Act, saying the attack on the Natural Resources Ministry is unfounded.
“The first was the accusation that he lied. This did not stick, so he was then accused of withholding the facts. That also proved to be unfounded so that the Stabroek News’s editorial of December 16 accuses him of secrecy, a crime which he allegedly shares with the government. These accusations are unfair and do not stand up to scrutiny. We hope that this controversy is not allowed to adversely affect the PGGS granted to the company. Overseas investment funds in Guyana’s mining industry and in exploration will dry up. Imagine what investors will think when they read about this controversy.”
South-east Berbice has long been an area of interest to miners. In the 1970s, the late Chris Barron of the UK did enormous work in mapping the terrain of that area, some of the toughest in the country, including the Muri Mountain area.
In 1976, he led a United Nations’ supported survey team to the area which identified phosphate and rare-earth bearing carbonatite. Sylvine and other minerals were also identified.
“These and other minerals exist for the benefit of Guyana and the Guyanese people. Their exploitation under environmentally sound practices, if found in commercial quantities, which will not happen for at least 10 years after exploration and perhaps much longer, will bring unimaginable benefits to the Guyanese people,” the statement added.
