Benjamin Marine and Salvage Services Inc., (BMSSI) has filed an action in the High Court against the Guyana Geology and Mines Commission (GGMC) which it says has illegally cancelled its quarry licence.
Against this background, BMSSI (the Applicant) is asking the court to compel both the Commissioner and the Commission to restore its licence granted back in 2017 and to quash their decision giving notice of intention to grant the quarry licence to York Investment Inc.
BMSSI also wants the court to grant an order of prohibition or alternatively an injunction restraining the Commission, their servants or agents from taking any further steps reflecting its intention to grant the licence to York Investments.
In its application against the Respondents— the Commission, its Commissioner, York Investment and Minister of Natural Resources Vickram Bharrat—BMSSI is seeking damages for what it says is breach of duty.
It also wants assessed costs and any further order the court deems just to grant.
BMSSI says that after expending years of “investment, effort and time” it was finally granted a quarry licence from the GGMC on June 19th, 2017, by which it acquired exclusive right to occupy 1,418 acres of state lands at Itaka East Bank, Essequibo for a period of 15 years for the purposes of quarrying hard rock and granite, among other things.
The Applicant said that the very next month it spent in excess of $30,000,000 on acquiring vehicles, machinery, and the necessary manpower to mobilise and commence works on the land granted.
BMSSI says in its application that after that period it began to suffer “a debilitating decline in income and business
activity from mid-2018 to 2020 occasioned by the conjoint effects of a dismal
business climate, political instability” and the COVID-19 pandemic.
According to the Applicant, while it made “spirited efforts” in April of 2020 to pay outstanding rentals in accordance with the obligations of its licence, monies “could not be collected as a result of the pandemic.”
It said that efforts at payment were also made in January of 2020 and twice in February of 2020.
BMSSI said that in January of this year the Commissioner informed it that its licence would be cancelled for “failure to pay outstanding rental fees and inactivity”.
The Applicant said that when it enquired what could be done, the Commissioner said “it was beyond his control” and that BMSS “could try to speak to the Minister” if it wanted.
BMSSI is arguing that this disclosure from the Commissioner is evidence that the decision to cancel its licence was made before it was given notice or could be given an opportunity to be heard.
By letter of 17th, February, 2021 BMSSI said it wrote the Minister’s office seeking assistance in having the licence resumed but it has never received any response.
The Applicant said that on March 10th it received a letter from the Commissioner outlining 10 alleged obligations it is said to have breached, informing that for those reasons its licence had been considered for cancellation.
The Applicant complains that contrary to the mandatory statutory requirements under Section 52 (3) of the Mining Act, the GGMC never served notice of its intention to cancel the licence, neither was it given the 30-day period in which to show cause as to why its licence should not be cancelled.
In these circumstances, BMSSI has contended that the Commission has acted unlawfully, while stating that in response to the letter of March 10th, its attorney Siand Dhurjon responded and complained that the Commission “has repeatedly and deliberately refused to accept the annual rentals due.”
According to BMSSI, a cheque for $1,191,120 was sent to the GGMC to satisfy the arrears but that the Commission still went ahead and published in the Official Gazette for April 12th, 2021 that its licence would be cancelled and that the area would be reserved for bidding or lottery.
A month later, BMSSI said that it learnt from the Gazette through a notice published from the Commissioner of the Commission’s intention to grant a quarrying licence to York Investments.
BMSSI is contending that its licence has been illegally cancelled and that by extension, that granted to York could not be regarded as having been legally done.
It is in these circumstances that the Applicant is seeking the orders requested from the court.
