Minister of Natural Resources and the Environment Robert Persaud had been strongly advised against issuing the controversial New River Triangle surveying permit to Muri Brasil Ventures Inc over the security concerns.
This disclosure was made even as two former army chiefs confirm that the Guyana Defence Force (GDF) over the years would object to any exploration activities in the area, in keeping with government policy.
But an observer close to the ministry said Persaud nevertheless ignored the advice that was given by a statutory agency and went ahead with the granting of Permission for Geological and Geographical Survey (PGGS), which includes a clause that virtually guarantees the company up to 18 prospecting licences.
Leader of the Opposition David Granger yesterday said that President Donald Ramotar as Chairman of the Defence Board can withdraw the PGGS.
Attempts to speak with the principals of Muri Brasil Ventures Inc proved futile yesterday as both Deen Hassan and Yucatan Reis are overseas. However, Public Relations Consultant Alex Graham said that he will be today issuing a statement on the company’s behalf.
Observers have pointed out that throughout the history of the country’s mining sector, there has never been the zeal to rush to grant permission to any company over the New River Triangle area as there is now.
“Why didn’t the former commissioners of the GGMC allow people into those areas? Why only now? That’s the question,” said an observer close to the ministry.
According to the observer, while this is by no means the first PGGS granted, it is the first time that a PGGS carried within it a clause allowing for the company to be guaranteed one–let alone 18–without taking one sample.
“Everybody knows there is mineral potential in the New River Triangle, but nobody was ever given [within that area]. This is a backdoor to prospecting licences,” the source said.
The Guyana Human Rights Association (GHRA) and the opposition parties have accused Persaud of misleading them when questioned about mineral activity in the south of Guyana. Opposition Members of Parliament Joe Harmon and Dr Rupert Roopnaraine both accused the minister of being technical with a view to evading disclosure of the PGGS granted to Muri Brasil Ventures Inc, although the minister has sought to deny these accusations.
While Persaud has argued that only a PGGS was granted to the company and that this was not mining, the GHRA and opposition members are concerned that such permission with the worrying clause it contained could be considered tantamount to handing the company 18 prospecting licences. Questions over the intent of the grant are also likely to stems from the fact that the Minister of Finance in this year’s budget had referred to likely extraction. “…Government has invited expressions of interest for two locations, one in southern Guyana and the other in Middle Mazaruni. This is likely to give rise to the development of exploratory activity in the first instance and subsequently, conditions permitting, extraction,” Finance Minister Dr Ashni Singh told the National Assembly during his budget presentation.
His reference to southern Guyana is most likely the one pertaining to Muri Brasil Ventures.
Not gov’t policy
Under the PGGS, signed in November last year, Persaud granted the company the exclusive right to occupy the area and conduct geological and geophysical surveys for rare earth elements, bauxite, limestone, nephelene, syenite, gold, diamonds and granite stones for a period of 36 months from November 7, 2012.
The key clause of the PGGS also provided that anytime during the duration of the permission, Muri Brasil Ventures Inc shall have the right to apply to the Guyana Geology and Mines Commission (GGMC) for, and shall be granted a maximum of 18 prospecting licences once it satisfies attendant requirements. It said too that the GGMC shall treat such applications on “a priority basis.”
Meanwhile, speaking to the Stabroek News, former Guyana Defence Force Chief-of-Staff retired Major General Joe Singh said that when he was at the helm of the army, the policy was that the area was not to be opened to exploration.
“I know that it was government’s policy not to open the area to exploration,” he said. The retired Major General said that in 1993 there was an operation to remove illegal miners from the New River Triangle based on the policy he spoke of.
“The government at that time did not countenance any activity [in the area] and as far as I know that policy has not changed,” said Singh. He said that at that time, it was the practice for the GDF to make recommendation whether or not exploration activities go ahead.
Granger, who also led the army, said that the policy of no activity in certain areas such as the New River Triangle came from two incidents that occurred in 1969: the Rupununi Uprising and an incident that occurred in the New River Triangle involving Surinamese military personnel.
Granger said that following those two incidents which both occurred months apart in 1969, government at the time took the decision not to have development within 10 kilometres of the border. He said that in the Rupununi only settlements were granted permission to be established within this 10 kilometre area from the border.
Further, Granger said that these matters are supposed to be decided on by the Defence Board and not any single minister or an agency such as the Guyana Geology and Mines Commission since they have serious implications for security and foreign policy.
“Development policies in those areas cannot be determined at the ministerial level but at the Defence Board level,” he said. “The President can make an Executive decision to withdraw the PGGS,” said Granger.
According to Granger, the Defence Board trumps any GGMC or ministerial board. He said that the Defence Board comprises the President as Chairman, the Minister of Foreign Affairs, the Minister of Legal Affairs, the Minister of Home Affairs and the Head of the Presidential Secretariat as Secretary to the Defence Board.
