23 March 2007
Dear Editor,
The forestry business world knows that Barama Company Ltd (Parent
Company - Samling Group) has a forestry concession of 1.69 million
hectares (1/3 of the State Production forests) in the small
impoverished South American nation called Guyana .
What is also acknowledged is that this concession was granted to Barama
with some unbelievable deals, totally in favour of Barama. These
giveaways in effect created a mini-State within the State of Guyana.
Apparently, Barama did not hesitate to use its influence as is
documented below.
What is troubling is that Dr Marcus Colchester (Guyana Fragile Frontier
– (Pub.1997) page 90) reported that: “Also in August 1996 it was
revealed (Caribbean Insight, August 1996) that Golden Star Resources
had entered into an agreement with the Barama Company Ltd to explore
for gold and diamonds in the whole of the logging company's 1.7
million-hectare concession, and the following month a joint exploration
between Broken Hill Properties Co. (BHP) and Golden Star Resources
(GRS) was revealed.” This report if true has serious implications.
Other published sources have also mentioned this deal. Here is some of
the published information (taken from various sources) on the deal
between Barama and the mining Companies.
Indo Caribbean World (Edition of July 17, 1996. Detailed Guyana News
(http://www.guyana.org/GuyNews
mining exploration agreement reported: “Georgetown - Golden Star
Resources and the logging company, Barama, are close to signing an
agreement for gold and diamond exploration in the North West District…”
Forest Peoples Programme Information Update (19 February 1997)
(http://abyayala.nativeweb.org
progress in the recognition and demarcation of Indigenous lands in
Guyana' reported: “Two mining companies, Golden Star Resources and
Broken Hill Property (BHP) Co. recently entered into a deal with the
Malaysian, Barama, timber company to prospect for gold and diamonds in
Barama's timber concession. Presumably one will cut timber while the
other explores or mines for minerals….”
In the USA's Country Commercial Guide Guyana, Fiscal Year 1999
(http://www.guyanausa.org
reported: 4. ‘Mining Industry Equipment'…‘Another Canadian firm has
been actively engaged in talks with the government about plans to open
a similar operation. Golden Star has also recently signed an agreement
with the Malaysian timber company, Barama, to begin prospecting for
mineral extraction on some of Barama's property. Barama holds timber
concessions for 4.4 million acres, many of which are believed to
harbour significant diamond deposits….”
The Toronto Stock Exchange (TSE): GSC News Release Nasd- Otc Bb: ‘GSRSF
Golden Star and BHP enter into joint venture on the Cuyuni property in
Guyana'(all currency amounts in United States dollars unless otherwise
stated) Denver, Colorado – April 25, 2002 , reported: “Golden Star
Resources Ltd. (“Golden Star” or the “Company”) is pleased to announce
that Golden Star and BHP Minerals International Exploration Inc (“BHP”)
have entered into a joint venture to acquire two prospecting licences
in the Cuyuni district in Guyana, which is located approximately 140
kilometers from the country's capital, Georgetown (the “Cuyuni
Property”). BHP is a member company of BHP Billiton Limited. BHP will
have an 80% managing interest in the joint venture and will fund 100%
of all project expenditures up to the completion of a bankable
feasibility study. Golden Star will have a 20% interest in the joint
venture and will be free carried until the completion of the bankable
feasibility study.”
“The Cuyuni Property, which covers an area of 104 square kilometers, is
prospective for copper and gold and is being acquired from Barama
Company Limited (“Barama”). Under the agreement with Barama, BHP will
pay to Barama (i) $65,000 upon the signing of the agreement, (ii)
$10,000 upon the transfer of the prospecting licences for the Cuyuni
Property into the name of BHP, (iii) $25,000 per year on the
anniversary of the signing of the agreement as an advance royalty
payment, (iv) $250,000 for each mine site developed by BHP as a further
advance royalty payment, (v) 1.0% of the capitalized exploration and
development cost of each new mine site as a cash payment upon
commencement of commercial production, and (vi) a net profits royalty
of 5%. The advance royalty payments are deductible from the net profits
royalty. In addition, BHP may spend up to $3.5 million on direct
exploration activities within the first five years following the issue
of the prospecting licences….”
Stabroek News (April 27, 2002
http://www.landofsixpeoples
Star, Billiton eyeing gold, copper mining in Cuyuni US$3.5M could be
spent in five years'): Golden Star Resources Ltd has entered into a
joint venture to acquire two prospecting licences in the Cuyuni with
BHP Minerals International Exploration Inc, which will plug US$3.5
million into exploration in the first five years. In a press release
issued by Golden Star (See abovementioned statement) earlier this week,
it was stated that the Cuyuni property, covering an area of 104 square
kilometres, is believed to have copper and gold and is being acquired
from Barama Company Ltd. …”
Dr. Keith Barron (in STRAIGHT TALK ON MINING, No.16, April 28, 2002.)
http://www.straighttalkonminin
gold in them hills!” stated: “Golden Star Resources Ltd. and BHP
Minerals International Exploration Inc. have announced a 20:80 joint
venture over an area of 104 square kilometres in Northwestern Guyana.
The “Cuyuni Property” as it is known, is being acquired from the Barama
Company Ltd. for cash, a royalty interest, and other considerations.
Golden Star closed their Georgetown office a few years ago, and BHP
left Guyana back in 1999. They had formerly been joint venture
partners….”
The almost identical abovementioned reports (from different sources -
local and international) show that Barama was making, or attempting to
make deals with the mining companies. Under Guyanese law, not even a
Guyanese Company or any Guyanese individual (Amerindians included)
is/are allowed to make large private deals with international mining
companies. Mining deals must be approved by the relevant Government
authorities – deals cannot be done independently without Government's
authorisation and involvement. Yet in all the above reported deals, we
see that Barama apparently thought that it had the legal powers (or
maybe Government's approval) to negotiate separate deals openly with
mining companies. We must ask who gave Barama the necessary permission
to enter into such negotiations without Government's authorisation and
involvement. If no permission was given then would this not be a
violation of Guyanese Law by Barama? How could the State of Guyana not
know what is going on before negotiations got that far? (The
information was coming out since 1996.)
One would have thought that, it should have been the Government of
Guyana that would be negotiating mining rights.
The interests of the state of Guyana were apparently not represented in
the negotiations between Barama and the Mining Companies. Mercifully,
for some reason(s) the deal was stopped. Maybe Barama and the
Government officials can enlighten us as to what happened.
What the proposed agreement also showed is that Barama knew how to
skillfully negotiate a contract favourable to itself - unlike the one
given to it by the Government of Guyana in1992. The Barama Company
Ltd.'s negotiators : (1) wanted all payment in US dollars.; (2) initial
signing bonus, (3) advance royalty payments; (4) payment for each mine
set up on its concession; and (5) five percent on any profits. Barama
also knew that if mining followed forestry, then there would be no need
for any reforestation efforts or any need to observe the Guyana
Forestry Commission (GFC) and or Forestry Stewardship Council (FSC)
forestry harvesting and environmental guidelines.
Barama's illegal actions were ignored by the Guyanese Government and
Business community. Instead the Barama Company was commended: “The
foreign-owned Barama Company Limited (BCL) has, for the second time in
three years, won the President's Award for the Export Achievement at
the Guyana Manufacturers' Association (GMA) 2002 Annual Dinner.”
(http://landofsixpeoplpes.com
Too bad the Guyanese negotiators (in their Barama deal) did not make a
similar deal for their ‘green' gold, viewing each tree as a mini gold
mine. It also reveals something about the Guyanese authorities (GFC,
Guyana Geology and Mining Concession (GGMC), and Government), that they
are sadly asleep at the switch. The FSC guidelines require Companies to
be incompliance with local laws in order to get a FSC certification of
good forestry management and practices.
Is attempted robbery still a criminal offence in Guyana?
Was Barama ever penalised (charged, fined) for breaking or attempting
to circumvent the laws of Guyana? If not, why were no charges ever
laid? Is it a question of diplomatic immunity? Can any Guyanese get
away with trying to claim and sell the country's assets?
Seelochan Beharry
Please Email Comments to guyanaforestryblog@gmail.com
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