No one has been selected yet by the Government to operate Scott’s Quarry. So said Energy Minister Kevin Ramnarine yesterday in response to questions from the Sunday Guardian about whether they were going to renew Malaysian-based Sunway Quarry Industries (Caribbean) Ltd’s contract to operate the quarry. The quarry at Verdant Vale, Blanchisseuse, has $1 billion in mineral reserves. Sunway’s five-year contract, which was awarded under the People’s National Movement Government, ended on October 14.
At least one contractor—Jusamco Pavers Ltd, headed by Junior Sammy—wrote to former National Quarries (NQ) chairman Mitra Ramkhelawan on August 2, expressing an interest in operating Scott’s Quarry and asking to be “favoured.” Two other contractors—Super Industries Services (SIS) and Raldon Construction Ltd, part of Gopaul and Company Ltd—had their eyes on the quarry. Yesterday, however, Ramnarine said “at this time we are studying all possible options for the future of Scott’s Quarry.”
Reports have surfaced from NQ that Government was also interested in renting Sunway’s plant rather than buy its own. Ramnarine said the decision to purchase a crushing plant for NQ “will be a matter for the new board of NQ.” Cabinet has not yet appointed a new board. “I expect one to be appointed shortly,” Ramnarine added.
Sunway paid $300m for ‘poor grade’ aggregate
Sunway was paid $79.30 per metric ton for its aggregate and was contracted to provide about 4,000 tonnes a day. In the last three years, NQ has paid Sunway approximately $300 million for processing materials, which has not been up to standard, according to independent reports.
Questioned if he was pleased with the quality of aggregate Sunway had processed and provided to NQ, Ramnarine said he has asked his permanent secretary and the director of minerals to give him a report on Scott’s Quarry. “This report will answer that question,” Ramnarine said. A NQ source said should the Government rent Sunway’s plant, they would be faced with the same problem of poor quality material.
Sunway failed gradation
On January 19, 2012, NQ wrote Irene Chow, Sunway’s finance manager, explaining that samples from its new stockpile crusher run mix were taken on December 13, 2011, and three independent tests—conducted by the Caribbean Industrial Research Institute, Earth Investigation Systems Ltd and Trintoplan Consultants Ltd—showed that its company had “failed the most critical criteria, the gradation.”
As a result, NQ removed Sunway’s stockpile from its inventory, advising them that no sales from their stockpiled material should take place until steps are taken to improve the quality. NQ stated that the failure of the material was due to a lack of quality control in the processing of the material.
The source said that Sunway defended its position by saying that former boards of NQ had indicated they were operating well with its products, and the company had met the required specifications with its gradation. The source said Sunway focused on volume rather than quality, which NQ raised with their attorneys a few months ago. NP was told by their attorneys that “it would be risky to terminate their contract because of the way it was drafted.”
NQ’s risk of losing $400 million order
In February 28, 2012, NQ wrote Chia Hon Yuen, senior production manager of Sunway, informing him that his promise to have the crusher run fall within the grading specification was yet to be realised. “This has cause NQCL’s client to lose confidence in us as a credible supplier of quality aggregate” NQ explained to Hon Yuen in its letter. NQ also explained to Hon Yuen that they were “exposed to the risk of losing” an order of $400 million.
The source said the success or failure of Government’s projects would be largely dependent on the quality of the materials utilised. Up to July, 2013, documents by NQ showed that materials by Sunway still did not fall within the specification bands. On Friday, Hon Yuen when contacted said he was not in a position to comment.