Published on Wednesday, 09 November 2011 22:40
Written by Adele Rampersaud
Source
The Government of Guyana has inked an agreement with Sandsprings resources and ETK Incorporated, a Canadian mining company to recommence large scale mining here.The operation of the mining company is expected to contribute in excess of $50M annually to Guyana’s gross domestic product and will create employment for some 1000 Guyanese.Signing the agreement on behalf of the government of Guyana was Prime Minister Samuel Hinds who stated that the agreement was in the pipeline for sometime as the company has been working in Guyana for the past 12 years. He added that with the operation of Sandspring and ETK, it will resuscitate large scale mining in Guyana. Meanwhile, Chairman of the boards of Sandspring resources and ETK Incorporated, John Adams believes the agreement is a fair one for both sides and can serve as a model for future mineral agreements.
He said his company welcomes the change in the royalty payments from 5 percent to 8 percent which is due to the high price for gold. Chairman of Guyana Geology and Mines Commission, Joseph Singh who also spoke at the event emphasised the importance of partnership between the government of Guyana and all stakeholders.Singh also stressed on the contribution of gold and bauxite to the country’s gross domestic product (GDP).
The agreement was signed in the presence of President Bharrat Jagdeo and Presidential Advisor Donald Ramotar and other stakeholders. Toropuru mine will cost a total of $US700M to set up with a mine life of 15 years. Its annual production is targeted as 250 to 300 and 20 million pounds of copper.