Georgetown: Total Canadian investments in Guyana is estimated over CD$3 billion (G$ 563,831,023,574), Canadian High Commissioner to Guyana, Dr Nicole Giles has disclosed.
She said in a quest to strengthen commercial and investment ties; Guyana and Canada have been working closely to increase mutual economic prosperity. In 2013, Canadian imports from Guyana totalled CD$486.4 million, after importing precious stones and metals (mostly gold), bauxite, beverages, and fish and seafood).
On the flip side, Canadian exports to Guyana in 2013 total CD$19.4 million. Guyana imported mainly cereals, machinery, paper and paperboard, vegetables and printed books.
According to Dr Giles, Canada is the largest source of Foreign Direct Investment (FDI) to Guyana. She disclosed that Canada is the leading player in Guyana’s extractive sector, comprising over 90 per cent of the sector’s international investment. Currently, there are 32 Canadian exploration companies operating in Guyana’s extractive sector working in sectors such as gold, bauxite, oil and gas, manganese, uranium and other precious metals.
Reference was made to the Guyana Goldfields which officially launched its Aurora Gold Mine Operations in December 2013. The Guyana Goldfields Aurora Project represents a 4.8 million ounce deposit. When it kicks into operations next year, it will become the country’s largest ever gold mine operation with over 1500 employees.
However, even as the mine is being constructed, 700 persons are employed, with over 80 per cent being Guyanese. According to the Canadian High Commissioner, the establishment of the Guyana Goldfields Project is creating a domino effect. She explained that when Guyanese are hired, they are encouraged to invest a per cent of their earnings.
“We expect that there should be a force multiplier effect of five times… we expect that you take your money and buy a car or invest in your child’s education or the development of a business,” Dr Giles explained.
She said too that the Canadian company has been investing heavily in the local economy. “Guyana Goldfield buys local whenever it can and I think large machinery businessmen in this country would tell you that they have been doing very well from the large scale purchases,” she boasted.
Additionally, through the Canadian High Commission, the company has been supporting the development of small and medium-scale enterprises in the area of agriculture. Dr Giles explained that agricultural producers in Guyana have secured a high valued market in the form of the Guyana Goldfield, with all agricultural produced bought from local farmers.
She explained that this forms part of the Promotion of Regional Opportunities for Produce through Enterprises and Linkages (PROPEL). This project has been designed to increase the quality and quantity of fresh, locally grown fruits and vegetables sold to companies through small and medium-sized producers.
Other Canadian companies that are poised to embark on large-scale operations here include CGX Energy Inc, Sand-spring Resources ETK, Reunion Minerals and First Bauxite. It was explained that CGX is slated to commence its drilling programme in the final quarter of 2014, as well as a plethora of mineral mining companies.
“Throughout all of Guyana’s mineral rich regions, Canadian companies can be found working in tandem with local communities to support and develop sustainable extractive sector operations as good corporate citizens.”
Canada has been strongly endorsing legislative reform and the implementation of effective policies and legislation to manage Guyana’s extractive sectors.
“Canada’s engagement ensures sustainable development of all gains from the oil and gas sector for all of the nation’s peoples. Canada is also supporting Guyana in partnership with the Commonwealth Secretariat in developing an oil and gas policy, extractive sector legislation based on Canadian models.”
It was explained that the development of effective legislation would result in greater accountability, allowing for the sector to develop in a sustainable manner which will ensure poverty alleviation and its associated socio-economic hardships.
But besides the extractive sectors, the Canadian High Commissioner emphasised that the Canada’s investment in Guyana goes beyond mining.
“Canada-Guyana business relations have ranged from support for the development of the local mining sector through GENCAP projects, support for the machine readable passport project, support for trade through assistance provided by the Trade Facilitation Office of Canada to the Guyana Manufacturing and Services Association, new Guyana Marketing Corporation as well as development support assistance for the Office of Trade Negotiations, among a plethora of other trade initiatives.”
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