THE LEADER VOLUME 12 • NUMBER 10
Is Cuba a good investment?
Founder and Publisher John Chadwick B. Sc. Min Eng Email: john @ im-mining. com
Editor Paul Moore B. Sc( Hons), M. Sc. Email: paul @ im-mining. com
Editorial Board Professor Malcolm Scoble Robert E. Hallbauer Chair in Mining Engineering., University of BC, Vancouver
Peter Knights Professor and Head of Division of Mining
Stephen Stone West One Management Perth, Western Australia
Dr. Andrew M. Robertson President, Robertson GeoConsultants Vancouver, Canada.
Ed McCord Project Consultant Caterpillar Global Mining, USA
Jason Nitz Fleet Management & Dispatch Superintendent Newmont Mining Corporation, USA
Dr Terry Mudder Managing Director, TIMES Ltd, USA
Simon Tarbutt Consultant, Santiago, Chile
Dr. Mike Daniel Comminution Process Consultant CMD Consulting Pty Ltd
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ISSN 1747-146X
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The damage caused by Hurricane Irma during its passage through Cuba is a tragedy. In a country so heavily controlled by the government, many are asking“ where is the government,” when they need it.
Perhaps this a salutary message for those interested in developing Cuban mineral resources as the cash-strapped, communist country’ s government opens up that source of wealth to more foreign investment.
Cuba plans to produce 54,500 t of nickel and cobalt sulphides this year, state-run television announced in July. Nickel is one of the country’ s most important exports, but revenue from it has suffered in recent years due to a decline in production and prices. The country was ranked 10th in world nickel production in 2016 and sixth in cobalt, according to the USGS.
Cuba produced on average 74,000 t / y of nickel plus cobalt during the first decade of this century, but the oldest of three plants was shuttered in 2012 and another has suffered from obsolescence and hurricane damage. Who knows what further hurricane damage there has been. Cuban nickel industry executives told Reuters a year ago that the industry was averaging 56,000 t / y.
Sherritt International Corp has announced that it has completed a preliminary review of its operations and confirmed that all of its Cuba-based personnel are safely accounted for. It also confirmed that the facilities associated with its Moa nickel joint venture as well as its oil and gas and power operations incurred only minimal damages as a result of the hurricane. Sherritt and its partners are currently focused on cleanup efforts and restoring all operations to normal capacity – aiming for 36,000 t this year.
Cubaniquel operates the Che Guevara plant, aiming to produce 19,500 t this year.
Cuba’ s National Minerals Resource Center has reported that the country has around a third of the world ' s known nickel reserves.
A new lead and zinc mine in northwest Cuba was, before the hurricane, on track to start production in October. Trafigura Mining Group is opening the country’ s first new mine for many years. The $ 278 million Castellanos mine will produce 100,000 t / y of zinc concentrate and 50,000 t / y of lead concentrate, according to executives at Emincar, the joint venture between Swiss-based commodities giant Trafigura and Cuban state firm Geominera.
“ We are reviving the small and medium-size mining sector in Cuba from this investment,” said Justo Hernández Pérez, Emincar deputy general manager, during a visit by foreign journalists to the mine in the province of Pinar del Rio. " This is just the start.”
There was an old gold mine at Castellanos and Emincar General Manager Jose Vila explains:“ We are now exploiting the deposit below the oxide cap.” He does not rule out the potential to produce gold there also. The mine has current mineable reserves of 11 years, while the nearby Santa Lucia deposit has enough for another 10 years, Vila said.
Sarah Marsh writing for Reuters reported that“ in its annual investment portfolio released late last year, Cuba published dozens of opportunities for foreign investors to explore, exploit and commercialise precious metals, base metals and other minerals of interest.
“ Cuba hopes foreign investment will boost its economy that managed to climb out of a recession in the first half of 2017. The island is under severe strain due to lower exports and a drop in cheap oil shipments from ally Venezuela.”
The USGS reports other mineral commodities produced in the country include bentonite, cement, crushed stone, feldspar, gypsum, lime, limestone, marble, nitrogen, salt, silica sand, and sulphuric acid.
The last USGS Cuba report available is for 2014 in which it notes the Portfolio of Opportunities for Foreign Investment( POFI) announcing ten mining sector projects.“ The country was offering international economic associations, including prospects for copper, gold, lead, silver, and zinc in the regions of Central Cuba, Ciego-Camaguey-Tunas, Holguin and Macizo-Baracoa, and Sierra Maestra. As of 2013, Cuba had produced more than 2.9 Mt of nickel and cobalt and had about 43 identified deposits of nickel. The country offered investment opportunities for the development of the Cajalbana, Colas Rojas de Moa, and San Felipe laterite deposits, which are located in the Provinces of Pinar del Rio, Moa, and Camaguey, respectively.
“ Cuba’ s mining sector is regulated by the Ley de Minas( law No. 76 of January 23, 1995). The law establishes the mining policy and legal regulations, which guarantee the protection, development, and rational use of the mineral resources. The Ministerio de Energía y Minas( Law Decree No. 301) is the entity responsible for establishing Government policy for the energy and mining sectors. In March 2014, Cuba’ s National Peoples’ Power Assembly approved the new Ley de Inversion Extranjera( law No. 118). The law establishes the new legal framework for foreign investment in the country.”
John Chadwick Founder john @ im-mining. com
OCTOBER 2017 | International Mining 3