GEORGETOWN, Guyana, Monday January 30, 2017 –Guyana’s manganese sector is set for major expansion in the coming months.
Two months after the David Granger administration gave the nod to a deal between BOSAI Minerals, the Chinese company currently involved in bauxite operations in Linden and Reunion Gold Corporation to acquire the latter’s rights in the Matthews Ridge Manganese Project, preparatory works are scheduled to get underway by the first half of the year.
The deal paves the way for manganese mining to resume in Matthew Ridge, Region One after several decades.
The Ministry of Natural Resources is expecting major dividends from the agreement, including substantial revenue, jobs and infrastructural development.
“Bosai expects that employment numbers can reach as high as 1,200 during the peak of construction and then stabilize at 300 to 400 during normal operations. Once in production, the company intends to ship 350,000 tonnes of manganese per year,” the ministry said.
Bosai will mine using conventional open pit methods with minimum blasting, and the mine will have a life of 15 to 35 years, depending on the rate of extraction, a statement from the ministry said.
Under the agreement, the Reunion Gold Corporation will transfer to the Bosai Mineral Group four prospecting licences that make up the Matthews Ridge project, the March 2011 Mineral Agreement between Reunion, Guyana and the Guyana Geology and Mines Commission, and capital assets.
According to the ministry, preparations will begin during the second half of this year and will include the construction of a wharf facility at Port Kaituma to receive supplies for the mine and mill, and the construction and upgrading of roads from Port Kaituma wharf to Matthews Ridge and Pipiani.
Other works would include mine development, including stripping and pit work for ore extraction, construction of tailings management and water supply facilities, and installing a milling plant for treatment of manganese ores.
Mining operations are scheduled to begin in another two years.