By the end of July, 1.6 million tons of aggregates were produced.

– Natural Resources Minister attributes production boost to new quarries
– says the country can produce around 5 million tonnes to meet growing demand

According to reports, by the end of July 2024, Guyana had produced 1.6 million tonnes of aggregates, almost three times the production of the mineral, which is mainly used in construction, in the past three years.

The news was recently revealed by Natural Resources Minister Vickram Bharrat, who told local journalists at a press conference last week that the mining industry had seen a sharp rise in commodity prices.

“In the mining sector, it is mainly to meet the demand generated by the large-scale infrastructure works being undertaken by the government and the private sector, the oil and gas sector, and major developments in the housing sector,” the minister said.

He explained that Guyana’s aggregate production last year was only about 900,000 tonnes; in 2020, the country produced 600,000 tonnes of aggregate annually.

The Minister noted that the rapid growth in quarrying output is a direct result of the policies implemented by the current government to promote the expansion of the quarrying industry.

“This is due to the expansion of the quarrying industry; refinancing and additional investment by existing long-standing quarry operators, and we have received new licenses over the past few years. Some of these quarries are now operational and producing,” Minister Bharat said.

He added: “We are seeing a lot of companies starting production and new companies starting production, which is increasing our production.”

Guyana is currently undergoing an infrastructure transformation with the construction of massive highways, new housing schemes and other major projects and to meet these needs, the Minister noted that the country is expected to produce more than 2 million tons of aggregates by the end of this year.

“By 2025, demand will increase because we have a number of other new quarry operators in the pipeline; they are developing their operations to start production in 2025. And mind you, as we do that, demand will continue to increase again because of how our country is developing,” the minister added.

He noted that based on current demand, it is predicted that the country will need more than 5 million tonnes of aggregate in another two to three years.

“The Guyana Geology and Mines Commission (GGMC) is gearing up to ensure that in the coming years, we are able to produce most, if not all, of our needs; we are already seeing exponential growth in sand mining and sand production. This is another huge step forward,” Minister Barratt said.

Besides this, the government maintains a certain position in the overall market, which will prevent price increases.

Since taking office in 2020, the government has been pursuing an unprecedented development agenda. This includes a focus on improving transportation infrastructure across the country, thereby boosting the national economy, creating jobs and circulating wealth.

This has created a huge demand for local aggregate (crushed material and stone) supplies, with aggregate prices increasing by 100% in some locations.

In 2022, in order to understand the current market capacity, the government met with several well-known local aggregate suppliers/quarries as well as new quarry operators to determine their production capacity and logistical challenges.