Canadian companies are pumping millions of dollars into the oil exploration and mining industries and efforts are being made to bring more firms onboard, new Canadian High Commissioner David Devine said yesterday.
Speaking at a Guyana Manufacturing and Services Association Limited (GMSA) business luncheon yesterday, he singled out oil exploration company CGX, which has invested close to CDN$200 million here within the last decade and has signalled its intention to invest a further CDN$92 million. Another company, Sandspring Resources Inc., recently signed a multimillion dollar agreement with the government for development of a gold/copper mine.
“As we continue to foster a relationship between the two countries, we will be actively promoting Guyana as a choice location for Canadian investors and intend to double or even triple the number of exploration companies over the next few years,” he said.
Devine said that in February next year, the aim is to bring “clean” Canadian firms interested in partnering, “so that we can continue to build our longstanding relationship.” He noted that CGX Energy Inc. had contributed significantly to the oil exploration opportunities in Guyana. “I am hopeful that this partnership will start to reap the benefits for both countries in the near future,” he said, before adding that a few weeks ago the company expressed interest in additional financing for two offshore wells here.
According to Devine, in the mining sector the Canadian government is currently working with over 25 Canadian firms, a partnership that would benefit both economies.
Sandspring Resources is to make an approximate US$700 million investment. The pact for mining development in the Toroparu, Region Seven location was signed on Wednesday during a simple ceremony.
Devine said that there will be the employment of over 1,000 people with a production of between 250, 000 and 300, 000 ounces of gold per year over the 17-year lifespan of the mine. “We anticipate other additional large-scale mining announcements from other Canadian firms in the future,” he added.
He announced too that later this month a team of Canadian experts from a number of fields will arrive in Guyana for a two-day symposium that will enable representatives from both countries to interact and share experiences.
The High Commissioner noted that the investments will allow for stronger economic relations between the two countries. One key area of cooperation, he said, is with Canadian universities and colleges in technical training with institutions in Guyana. He explained that currently there is a Memorandum of Understanding between Trent University and the Institute of Applied Science and Technology that would allow Guyanese students to be exposed to research studies in environmental, life sciences and material sciences, among others.
“This collaboration would also yield highly-skilled persons in a variety of fields,” he said, while adding that his government will be looking at a number of projects in the agriculture field during the next few months.
“The future of Guyana holds considerable promise. Over the next five to ten years, changes that will take place will likely be more profound than any that had occurred before,” he opined.
Devine said that the relationship between Canada and Guyana has always been strong and sustainable. “It has now reached a level of maturity which permits us to take advantage of our respective strengths. Guyana’s success is our success. We must work together to ensure that the future generation has a solid foundation on which to build,” he said.
Meanwhile, GMSA president Clinton Williams said that Guyana’s exports to Canada in 2010 amounted to approximately US$300 million, of which gold was the major item, followed by rum and other smaller exports, including agricultural products. He noted that historically businesses taken on by Canadian companies were in the mining sector, particularly bauxite and gold, while oil exploration has seen recent growth.
Williams said that for many years GMSA has been a catalyst for capacity building and has taken on small and medium-sized enterprises. “We could not have done this without the generosity of the government of Canada,” he noted. He added that the GMSA and the private sector intend to do everything to continue the partnership.
