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Quarries crackdown backfires
... gravel shortage, price hike

By Siewdath Persad (Editor)

THE recent crackdown against illegal quarry operators has resulted in a severe shortage of material that could cause the booming construction industry to screech to a grinding halt.

An industry source estimated that the price of a load of gravel is expected to increase by as much as 20 per cent because of stiff demand and the drop in supply caused by the crackdown and confiscation of equipment used by unlicensed quarry operators, who fill the breach that the licensed operators are unable to.

An increase in the price of gravel would have a trickle down effect, and this would subsequently affect all other construction material that are dependant on sand and gravel.

ERIC WILLIAMS.

Energy Minister
ERIC WILLIAMS.


Concrete blocks, balusters, concrete poles and landscapings are some of the goods and services expected to increase by about 30 per cent, according to a construction site manager, speaking on condition of anonymity.

The cost of transporting material has already begun to climb, as drivers have to wait much longer to get their loads due to the shortage of aggregate.

The construction boom would be severely affected by the increase in the cost of aggregate, which would result in a negative impact on the industry as contractors are now forced to renegotiate higher prices with their clients.

The road construction projects are already suffering because most of the fill used was purchased from the illegal mining operators.

Some quarry operators are laying the blame squarely on the shoulders of the government for the unhealthy situation in the industry that could trigger an economic nightmare

They claim that an ill-conceived attempt to destroy the credibility of the Jamaat al Muslimeen which has been accused of illegal mining to fund criminal activities, has backfired, but it has left many quarries now on the verge of closing down.

The operators are now wondering if the government’s decision to shut down the miners was part of a conspiracy with National Quarries Limited to create a monopoly in the industry and then privatise the company.

“Imagine for the past five years the government has not given any quarry operators mining rights except Coosal and National Quarries, and I can tell you there are several applications that meet all the statutory requirements for the grant of a license, but the government is just playing the arse,” an angry industry source said.

Some of the operators are speculating that even National Quarries is operating illegally.

They said Energy Minister Eric Williams indicated that those who were on lands legally, paying royalties and taxes, and through no fault of theirs did not have their licenses properly extended, would be given priority when new licenses are being issued.

But this has not been done.

As early as next month, if the quarry operators mining issues are not settled thousand of workers in the industry will face the breadline and billions of dollars in trucks and heavy equipments would be at a standstill, TnT Mirror was told.

Eventually, the entire construction industry would crash and government’s boast of foreign investors and their construction projects would suffer from inflated prices because of the shortage of aggregate.

Even if the operators decide to import materials from South America, Santo Domingo or British Columbia the prices would be ridiculously high due to the high cost of shipping.

On the other hand, at present, only National Quarries can import aggregate into the country.

All other importers have to get a special permit from the Ministry of Energy.

It was explained that the government’s road-paving frenzy that normally accompanies election campaigns requires three-eights stones. This material is mixed with bitumen to make strong asphalt.

The stone is already in great demand and no quarry operators are able to provide adequate supply to satisfy the road paving industry.

Mirror was also told that members of the Quarry Association were paying close attention to a big conglomerate they claimed is making a bid to acquire Studley Park limestone quarry in Tobago.

The conglomerate is also said to be attempting to acquire a State-owned quarry in Guyana, described as the largest mining circuit in the region.

Experts in the business are predicting that the conglomerate would bounce its head because it would be faced with real difficulties to remove the material through the Orinoco River.

It was also bandied that such an operation must be closely examined because it could be used as a fresh means of bringing in cocaine from South America.

Barges normally experience real difficulties with the water current and the large rocks are a serious hindrance for inexperienced barge operators.

A person who has experience navigating the river explained that only 5,000 metric tonne barges could transport the mined material from Guyana.

Talk is spreading like wildfire and the worried, affected quarry operators are wondering if the entire episode is a set up to make way for the friends, financers and the big conglomerates associated with the ruling People’s National Movement (PNM). The next move they claimed that would eventually let the cat out of the bag is if the government attempts to divest National Quarries.

“This certainly will be the final nail in the coffin for the dying local quarry industry,” an insider said.

“What, then would experienced small operators, who have mortgages to pay and whose livelihood depends on this activity, be left to do?

“Certainly, committing crime is not an option, although this seems to be encouraged at certain high levels

“We understand that the industry needs to be properly regulated and I am sure all operators will readily comply when this is done.

“But regulating it to facilitate a few big boys or creating a monopoly is not the way to go.

“The government will end up bouncing its head if this is what is being plotted.”
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