Canadian mining firm Reunion Manganese Inc to invest US$250 million at its Matthews Ridge project

A section of the audience at the business luncheon

Canadian mining firm Reunion Manganese Inc on Thursday said it will spend approximately US$250 million at its Matthews Ridge, North West District project. But the firm has lamented the paucity of skilled geologists here and the length of time it takes for foreigners to be granted work permits.

These comments were made by the company’s Chief Operations Officer, Joachim Bayah at a business luncheon hosted by the Guyana Manufacturing and Services Association (GMSA) at the Regency Suites, Hadfield Street, Georgetown. The manganese firm was granted exploratory licences for its Matthews Ridge project in 2010 and is hoping to commission the mine by 2014. The Canadian firm said it will extract two million tonnes of manganese concentrate per year and once fully operational, the project will create roads, a rail link and much more infrastructure the area is currently lacking.
The prospecting licenses Reunion Manganese obtained from the Guyanese government in September 2010 cover an area of 45,729 acres and centre around the abandoned manganese mine at Matthews Ridge and Pipiani, once operated by a subsidiary of Union Carbide Corporation from 1962 to 1968. Exploration activities conducted by Reunion Manganese Inc since November 2010 consist of 59 trenches totalling 4700 metres, and 35 drill holes totalling 2800 metres. A total of 42 auger holes have also been completed to test the tailings from the previous operation. The former Matthews Ridge mine area consists of a 12-kilometre long series of hills within the ridge formation hosting the manganese mineralisation and extends for 40 kilometres of strike. The primary manganese zone is reportedly 150 to 175 cm thick and approximately 30 km long in a general north-east-south-west direction.
Meanwhile, Bayah told the gathering of mostly businessmen that as of last year, the exploration activities by the company created over 300 jobs and an additional 300 jobs will be created this year, Bayah said, adding that expenditures for last year stood at some US$36 million, US$14 million of which was used for capital, equipment, engineering and salary for employees. Reunion also established a brand new state of the art analytical lab at a cost of US $1.2 million. The manganese firm said it will continue to create a wide range of jobs for Guyanese, but he lamented the lack of skilled geologists , saying the effects of brain drain was taking a toll on the sector.