INVESTMENT OPPORTUNITIES: MINING AND MINERALS
Digging deep The mineral prospects of the Caribbean Community are as diverse as its Member States, and there is much potential for investment to assist these countries in tapping into their subterranean wealth
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Haiti – promising prospects
he Caribbean Community is best known for its tourism and banking services rather than its important mining and mineral sector, but Jamaica, Guyana and Suriname have substantial mining industries, supplying a range of metals and minerals, including bauxite, gold and diamonds, to CARICOM Member States and to North America and world markets. Dominica, Belize, Montserrat and The Bahamas have some mining and quarrying activity to meet domestic needs, but little is exported. However, it is Haiti that probably offers the greatest prospect over the next decade to foreign investors, mining and mineral companies. The governments of Australia and Canada provide economic development aid, and have substantial mining and equipment sectors that are interested in participating in the future development of the CARICOM Region’s mining and mineral sector.
Haiti is generally viewed as one of the poorest countries on Earth. In 2012, its luck changed when prospectors, operating in the north-eastern mountains found indications of substantial gold, copper and silver resources, which are estimated to have a current market value of at least $20 billion – a sum sufficient to attract foreign know-how and investment and to inspire government activity. As a result, the World Bank is helping the Haitian government to prepare a new mining law to establish the ground rules for the prospective industry. In the meantime, the government has already awarded its first gold and copper exploration permits to SOMINE SA, which is jointly owned by Canadian company Majescor, and VCS Mining LLC – a US-based mining company with offices in Haiti. Other companies that are showing an interest in Haiti include Newmont and Eurasian Minerals, both of which are based in Colorado. Further surveying might offer even greater prospects.
Jamaica – the CARICOM minerals powerhouse
Guyana – on the verge of a mining boom
Jamaica is the local Regional giant of CARICOM Member States that are engaged in mineral exploration, mining and quarrying, mineral processing and the manufacture of raw materials. The mining and quarrying sector accounted for 3.8 per cent of the country’s gross domestic product (GDP) in 2008. Bauxite, which is an essential ingredient of the alumina industry, is one of Jamaica’s principal exports, competing against supplies from Suriname and Guyana to nearby markets, the Region and further afield. In 2011, Jamaica was ranked as the world’s sixth largest producer of bauxite, behind Australia, China, Brazil, India and Guinea. Geologists estimate that the country has 1.6 billion tonnes of bauxite, which is enough to last for approximately 100 years at current rates of production – 11 million tonnes per year. However, the global financial crisis and economic recession hit bauxite and alumina production very hard. Alumina Partners, the country’s leading bauxite and alumina producer, announced that it was cutting production by 50 per cent. Mining and quarrying activity fell, causing a two per cent drop in GDP. To revive the industry, in 2009 the Jamaican government introduced a revised draft of the national minerals policy in order to encourage fresh investment. Surveys dating from January 2013 indicate that Jamaica could have as much as 575 billion metric tons of high-quality limestone, which is an essential ingredient for the chemicals industry and for metallurgical applications worldwide. The eastern part of Jamaica has significant deposits of precious and base metals, including copper, gold, iron, nickel, silver and zinc destined for CARICOM markets and the Region.
After years of exploration that revealed vast deposits of mineral wealth, including gold, diamonds, bauxite, manganese, uranium, copper and rare earth metals, Guyana is on the cusp of a large-scale mining boom. A favorable tax regime, a modern ‘Canadian-style’ mining act and privatisation have successfully attracted US and Canadian investment, bringing with it modern mining practices. In 2011, there were 191 large-scale prospecting licences and 1,161 medium-scale mining permits in force. Currently, the mining and quarrying sector accounts for more than 10 per cent of Guyana’s GDP, and 40 per cent of exports, much of which is destined for world markets. Gold output, mainly from small- and medium-scale mining operations, increased in 2012 to more than 403,000 ounces, accounting for around 45 per cent of export earnings, and destined for the US and Canada. Foreign investment in large-scale production programmes, such as the Aurora project and the multi-million ounce Toroparu gold-copper deposit that is due to come on stream in early 2015, are prime examples of Guyana’s graduation to large-scale production. In 2012, Guyana produced an estimated 50,000 carats of gem-quality diamonds, of which the US was the largest buyer. A partial privatisation programme of government-owned mining and mineral assets has contributed to the expansion of the sector and attracted foreign investment. In February 2007, the government allowed China’s Bosai Minerals Group to acquire for $46 million the 70 per cent share in the Linden bauxite operations that were previously held by Canada-based
Eye Ubiquitous/PA Images
Guyana is on the cusp of a large-scale mining boom
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