The Ministry of Natural Resources and the Environment says that there was never any advice from the Guyana Geology and Mines Commission (GGMC) against issuing the controversial New River Triangle surveying permit to Muri Brasil Ventures Inc.
“There was no such advice from the Board and Management of GGMC. The negotiation was prepared by the GGMC. The PGGS was published in the Official Gazette inviting objections. None was received from any individual and/or organizations,” the Ministry said in an ad published in today’s edition of Stabroek News. The ad sought to defend Natural Resources Minister Robert Persaud following a report in this newspaper that he had been strongly advised against issuing the controversial New River Triangle surveying permit to Muri Brasil Ventures Inc. over security concerns.
An observer close to the ministry had told Stabroek News that Persaud ignored the advice that was given by a statutory agency and went ahead with the granting of the Permission for Geological and Geographical Survey (PGGS), which includes a clause that virtually guarantees the company up to 18 prospecting licences. This disclosure was made even as two former army chiefs confirmed that the Guyana Defence Force (GDF) over the years would object to any exploration activities in the area, in keeping with government policy.
The ministry, in the ad, labelled as misinformation, statements that the granting of the PGGS constitutes a threat to national security. “The New River Area belongs to Guyana and there is no agreement that forbids aerial surveys or such related activities under the PGGS. The issuance of the PGGS to Muri Brasil Ventures Inc. is a legal, clear and undisputed act of national sovereignty,” the ministry said.
It also denied that the granting of the PGGS was not transparent. “The Guyana Geology and Mines Commission publicly requested expressions of interest for proposals for a Permission for Geological and Geographical Survey (PGGS). Proposals were evaluated and recommended by the Guyana Geology and Mines Commission to the Minister for his approval. The advertisement was publicised in March 2012,” the statement said.
Previously, the ministry had stated that the expression of interest by the company predated the creation of the Ministry in 2011. It has now corrected this and this means that all matters related to the Muri permission occurred under Minister Persaud’s tenure.
The ministry said that this is not the first PGGS to be granted and currently there are four active PPGS. Prior to the Ministry’s creation there were 15 which have since expired, the ad said. “Those active and expired are from the period 2007 to current. Further, there are also eight (8) applications currently being processed by the GGMC for PGGS,” it stated.
The ministry also denied that the PGGS was given special and automatic approval (backdoor process) for the granting of Prospecting Licenses. “PGGS holders could expect to have an option to apply for Prospecting Licenses. There ought not to be any automatic approvals of same by the GGMC,” it said while adding that a standard clause of all PGGS issued states:
“During the duration of the Permission, the Permittee shall have the right to apply to the Guyana Geology and Mines Commission for, and shall be granted a maximum of …… Prospecting Licenses for ….. minerals and rare earth elements.
Provided that (1) such a grant shall be subject to the Permittee having satisfied the requirements of the said Work Program, for the Geological and Geophysical Survey, and (11) satisfactory proof has been furnished to the Minister of financial resources and technical capability, along with approved work program for each Prospecting License Application.”
The ministry also said that it was false that 2.2- million acres of rights were granted under the PGGS. “The area is for the purpose of aerial surveys. The PGGS holder will have to relinquish a considerable acreage in the term of the PGGS. There are PGGS issued prior to 2011 which cover a larger area,” it said.
It reiterated that the PGGS is not a mining permit and said that environmental impacts will be insignificant. The PGGS is to be used for aerial surveys and is used only for exploration programmes. Tenure under PGGS and Prospecting License (PL) are exclusive for exploration as defined in the Mining Act and do not include mining, which involves the excavation of land for the extraction of minerals, the ministry says. “Environmental impacts if any, are expected to be insignificant and activities under the grant of the PGGS should not conflict with the Low Carbon Development Strategy (LCDS),” it added.
The ministry reiterated that Persaud did not “misled/lied” to the Standing Sector Committee on Natural Resources and other stakeholders. However, these stakeholders remain adamant that he did.
Yucatan Reis
Meantime, the main opposition APNU has noted that one of the directors of Muri Brasil is Yucatan Reis and pointed out that he had supported the PPP campaign in 2011 and questioned whether this is his reward. Reis had appeared with Governor of Roraima state Jose de Anchieta Junior at a PPP campaign event in Lethem where the governor had endorsed the PPP government, highly irregular for a governor of a neighbouring country. Reis had from 1999-2000 worked as an aide in the area of industrial development to the government of Roraima state.
In Guyana, he is the owner of Excel Minerals Inc. which was established in 2002. The company offers a wide variety of services include gold trading, diamond buying, production finance and money transfer. Many of his clients are Brazilians, according to a mining industry source. The company has offices in Bartica, Mahdia and the North-West District. According to the company’s website, he also founded Excel Capital Inc., ITL Trading Incorporated and International Metallics Inc., among other companies.
Reis is also coordinator of the Brazil/Guyana Development Institute which was the only third-party body recognized by government to act on behalf of Brazilians seeking work permits. The government in 2012 had said that it would not be accepting sponsorship of Brazilians from “middlemen” or agents but would instead, work along with the Institute. It was expected that the institute would not charge a commission for processing the applications for work permits and extensions of stay but rather accept fees on behalf of the GGMC and the Ministry of Home Affairs. The Guyana Gold and Diamond Miners Association was later allowed to offer sponsorships for work permits.
