Essar group eyes mining in Guyana

The Essar group is in talks with the Guyana government for opportunities in manganese and iron exploration in the country. P R Dhariwal, director, Essar group, met Guyanese Prime Minister Samuel Hinds a fortnight ago to initiate talks.

"This is part of Essar's strategy to explore opportunities around the world. This is in line with the global practice of metal companies to buffer their raw material sources," said a source close to the development.

An Essar spokesperson refused to comment but said, "The talks are in too early a stage."

However, media reports in the Latin American country quoted government information agency, GINA, as saying: "The government of Guyana and the Essar group of India signed a memorandum of understanding for manganese and iron exploration in Regions One and Nine."

The Guyana government is banking on the Essar initiative to rejuvenate the manganese industry.

The Guyana Geology and Mines Commission has been pushing independent iron exploration studies in several districts across Guyana. The source added that the Commission and the Guyana Office for Investment will join hands with the Essar group for exploration.

This is the second major initiative that the Essar group has taken in the region over the past year. In September last year, Essar had announced a $1.2 billion project to set up a 2 million tonne capacity steel plant in the Carribean island of Trinidad and Tobago.

Guyana has several known reserves of manganese and iron. Steel and iron making has accounted for most demand for manganese. The Guyana government, according to GINA, will support and facilitate Essar's initiative through relevant agencies and expedite the process.

Recently, Essar Steel last week commissioned the 1.8 million tonne per annum (tpa) caster at its Hazira steel plant. It is claimed to be the country's first vertical caster.

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