Saturday, July 2, 2022

Rice mill giant to fund US$2M mining project in response to oil sector boom in Berbice

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OilNOW
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Investments being made by CGX Resources Inc. in the county of Berbice are beginning to increase demand for various products and services. One large-scale business is taking advantage of the opportunity.

Rice mill giant, Nand Persaud & Company Ltd., is poised to invest approximately US$2M (GYD$419,397,600) in two sand, loam, and laterite open mining pit projects in Berbice.

As it awaits the relevant permissions from regulatory bodies such as the Environmental Protection Agency (EPA) and the Guyana Geology and Mines Commission (GGMC), Nand Persaud revealed that it will be investing approximately US$1M at its proposed Manakaburi project which is located on the left bank of the Berbice River.

The project is being designed to produce a combined 50,000 metric tons of sand, loam and laterite per year in its initial capacity. OilNOW understands that this may increase when the project recovers capital expenditure and if the demand justifies further investment in expanding production capacity. The mine output is expected to be transported by barge down the Berbice River to New Amsterdam.

The second open mining pit will be at the Mapenna project site which is located on the left bank of the Corentyne River. The project site lies on an area that is classified as sandy red – yellow latosols and is perfectly placed to host significant reserves of fill materials. The company will be investing another US$1M in the development and commissioning of this operation.

The projects are being developed and managed by Mr. Rajendra Persaud Persaud, Chairman of Nand Persaud & Company Ltd. to meet the growing demand for fill material in the county as the economy continues to be boosted by increasing construction, infrastructure, and sea defense works, with further expansion anticipated with the increasing oil and gas sector related activities.

Additionally, Nand Persaud & Company Ltd. was keen to note that it recognises the demand for sand, loam & laterite (fill materials) in the Berbice district in particular. The company said there are currently limitations of supply within the district, and an increase in demand is anticipated from the expanding construction sector.

Expounding further, the company said the Government of Guyana is developing several major infrastructural projects in the county of Berbice, including several roads. It said too that there are also numerous private sector developments related to the oil and gas sector, such as the CGX shore base being developed on Crab Island.

The developer said it estimates the current demand for fill material to be approximately 50,000 metric tons per year in light of the foregoing projects.

It stressed that this is a conservative estimate, as it is expected that demand will be increasing consistently over the next few years as the oil and gas sector expands and drives national development.

Nand Persaud said it therefore estimates that the project is guaranteed for success as it will have a payback period of 3 years.

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