REGIONAL FOCUS

Mapping the Caribbean mining industry

With a range of regulatory frameworks and resource deposits across the region, the Caribbean is one of the most diverse, and potentially prosperous, mining areas in the world. Matthew Hall considers its mineral potential.

The Caribbean is host to a diverse array of mineral deposits and the region has the potential to become a globally significant mining area, with Caribbean nations like the Dominican Republic and Guyana actively courting foreign investment in their mining sectors. On the flip side, some parts of the Caribbean have struggled to harness their own natural resources, owing to a range of factors from domestic opposition to mining to historic political instability that discourages investment.


From Jamaica overhauling its mining legislation and regulations, to the potentially colossal value of minerals in poverty-stricken Haiti, the Caribbean’s status as a mining region could be on the rise. We dive into the most notable developments across the region.

Dominican Republic: will mining law overhauls attract investment? 

The Dominican Republic’s minister of energy and mines, Antonio Almonte, announced in August 2020 that his office will push for congress to reform mining law, with proposed modifications to the 1971 legislation prepared in October.

“Institutional issues have changed, the dimension and role of mining in local economies has changed, and also the level of awareness and the attitude toward the grievances of citizens in relation to the environmental and social impacts of mining have changed,” Almonte said in October 2020.

“All of these issues are elements that, together with the technological revolution, must form part of a law that could be considered a foundation for responsible mining.”

Almonte is part of new President Luis Abinader’s government; Abinader campaigned with a plan to grow the Dominican mining industry. Abinader indicated he would approve Barrick Gold’s $1.3bn expansion of its Pueblo Viejo gold mine in the country, which would expand the life of the mine beyond 2040. In 2019, Pueblo Viejo produced 590,000 ounces of gold.

An overhaul of the country’s mining law is most likely going to be done with the aim of attracting investment in the country, while also ensuring projects deliver benefits to local communities and mining activities are undertaken in environmentally responsible ways.

Jamaica: a new Mining Act to unleash mega potential 

Jamaica discovered high-grade bauxite deposits in 1938, giving birth to a bauxite mining sector that has attracted investment from US, Russian, and Chinese companies. As of 2015, the country was ranked seventh in the world for bauxite production and eighth for alumina.

Hong Kong-based Noble Group, the operating partner for alumina refinery Jamalco, said in September 2020 that the refinery is targeting 2021 for a potential initial public offering. Jamalco is a joint venture, with Noble Group holding 55%, via its subsidiary General Alumina Jamaica, and Clarendon Alumina Production holding the other 45% on behalf of the Jamaican Government.

Jamaica has a range of other extractable materials including gold, copper, and limestone. Aside from bauxite and alumina, most of Jamaica’s exploitable resources are in early stage development.

In a June 2020 report, and at the request of Jamaica’s government, the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) identified several gaps in Jamaica’s mining policies and laws, including outdated legal and policy framework governing the mining sector, with numerous overlapping pieces of legislation that can be difficult to navigate.

The new National Minerals Policy recommended the introduction of a comprehensive Minerals Development Act, which would consolidate many of Jamaica’s mining regulations into one piece of legislation.

Haiti: could mining be a lifeline for an impoverished country?

According to the World Bank, Haiti is the poorest country in the Western Hemisphere, with a GDP per capita of $797 and a Human Development Index ranking of 169 out of 189 countries in 2019.

At the start of the last decade, a potentially huge economic boon was discovered after a round of exploratory drilling by US and Canadian companies unearthed valuable metals including gold, copper, and silver. It was estimated that Haitian soil could hold $20bn in precious minerals.

A 2012 estimate suggested that more than six million Haitians lived below the poverty line of $2.41 per day; the significant mineral discovery prompted hopes that Haiti could bounce back from the disastrous 2010 earthquake and begin a programme of economic and social development.

Exploration work by foreign companies in Haiti has proven controversial with Haitian communities; in April 2020, eight farmers’ and workers’ rights organisations in Northwest Haiti signed a declaration encouraging residents to reject gold miner Newmont’s projects in the region. The declaration warned residents to remain vigilant of the government and corporations using the Covid-19 pandemic and economic crisis as a means to “take our land”.

Haiti has, in the past, struggled to attract foreign investment because of a lack of confidence in its political system and ability to effectively govern its resources.

Cuba: the cobalt and nickel haven of the Caribbean

Nickel is one of Cuba’s top exports and the country is on course to extract 50,000 tonnes of the metal this year.

Cuba also holds the world’s third largest cobalt reserves and the country’s Moa region is home to a joint venture nickel-cobalt operation by Canadian company Sherritt International and Cuba’s General Nickel Company. Sherritt International is one of the largest foreign investors in Cuba.

Cuba could be interesting to watch through US President-elect Joe Biden’s administration; diplomatic relations were restored under the Obama administration in 2015, while Biden served as Vice President.

News of Biden’s election victory was reportedly celebrated in Cuba as the incoming President may reverse some of incumbent Donald Trump’s sanctions on the Communist Party-led country. While few expect the US to lift the trade embargo between the two nations, Cuba’s nickel and cobalt reserves could prove too enticing to a country set to embark on a clean energy transformation under Biden’s administration.

Guyana: a mineral-rich country open to investment

Canadian resource company Goldsource Mines is currently in the Proof of Concept Phase at its wholly owned Eagle Mountain Gold Project in Guyana. According to the company, Guyana contains one of the most prospective, yet underexplored, gold regions in the world.

Guyana is a member of the Caribbean Community, and is the only Caribbean country that is part of mainland South America. Through its Land Tenure Act in 2004, the country declared itself open to foreign investment. Though the mining sector in the country is primarily focused on gold, bauxite, and diamonds, Guyana does contain varying quantities of copper, molybdenum, iron, nickel, and radioactive minerals.

Viewed as a favourable mining jurisdiction for its Westminster-style parliamentary democracy and recent promotion of foreign investment, Guyana has a number of major gold projects, notably Guyana Goldfields’ flagship Aurora gold mine, which began commercial production in 2016. Guyana Goldfields was acquired by Chinese mining company Zijin Mining Group in August 2020.

According to the Guyana Office for Investment, the Government of Guyana is interested in securing large-scale investment for gold and bauxite exploration, as well as the development and mining of the country’s other resources, including copper and nickel. 

Click on the flag icons

To learn about mining in the Caribbean

Cuba

Haiti

Dominican
Republic

Jamaica

Guyana

Dominican Republic: will mining law overhauls attract investment? 

The Dominican Republic’s minister of energy and mines, Antonio Almonte, announced in August 2020 that his office will push for congress to reform mining law, with proposed modifications to the 1971 legislation prepared in October.

“Institutional issues have changed, the dimension and role of mining in local economies has changed, and also the level of awareness and the attitude toward the grievances of citizens in relation to the environmental and social impacts of mining have changed,” Almonte said in October 2020.

“All of these issues are elements that, together with the technological revolution, must form part of a law that could be considered a foundation for responsible mining.

”Almonte is part of new President Luis Abinader’s government; Abinader campaigned with a plan to grow the Dominican mining industry. Abinader indicated he would approve Barrick Gold’s $1.3bn expansion of its Pueblo Viejo gold mine in the country, which would expand the life of the mine beyond 2040. In 2019, Pueblo Viejo produced 590,000 ounces of gold.

An overhaul of the country’s mining law is most likely going to be done with the aim of attracting investment in the country, while also ensuring projects deliver benefits to local communities and mining activities are undertaken in environmentally responsible ways.

Jamaica: a new Mining Act to unleash mega potential 

Jamaica discovered high-grade bauxite deposits in 1938, giving birth to a bauxite mining sector that has attracted investment from US, Russian, and Chinese companies. As of 2015, the country was ranked seventh in the world for bauxite production and eighth for alumina.

Hong Kong-based Noble Group, the operating partner for alumina refinery Jamalco, said in September 2020 that the refinery is targeting 2021 for a potential initial public offering. Jamalco is a joint venture, with Noble Group holding 55%, via its subsidiary General Alumina Jamaica, and Clarendon Alumina Production holding the other 45% on behalf of the Jamaican Government.

Jamaica has a range of other extractable materials including gold, copper, and limestone. Aside from bauxite and alumina, most of Jamaica’s exploitable resources are in early stage development.

In a June 2020 report, and at the request of Jamaica’s government, the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) identified several gaps in Jamaica’s mining policies and laws, including outdated legal and policy framework governing the mining sector, with numerous overlapping pieces of legislation that can be difficult to navigate. The new National Minerals Policy recommended the introduction of a comprehensive Minerals Development Act, which would consolidate many of Jamaica’s mining regulations into one piece of legislation.

Haiti: could mining be a lifeline for an impoverished country?

According to the World Bank, Haiti is the poorest country in the Western Hemisphere, with a GDP per capita of $797 and a Human Development Index ranking of 169 out of 189 countries in 2019.

At the start of the last decade, a potentially huge economic boon was discovered after a round of exploratory drilling by US and Canadian companies unearthed valuable metals including gold, copper, and silver. It was estimated that Haitian soil could hold $20bn in precious minerals. A 2012 estimate suggested that more than six million Haitians lived below the poverty line of $2.41 per day; the significant mineral discovery prompted hopes that Haiti could bounce back from the disastrous 2010 earthquake and begin a programme of economic and social development.

Exploration work by foreign companies in Haiti has proven controversial with Haitian communities; in April 2020, eight farmers’ and workers’ rights organisations in Northwest Haiti signed a declaration encouraging residents to reject gold miner Newmont’s projects in the region. The declaration warned residents to remain vigilant of the government and corporations using the Covid-19 pandemic and economic crisis as a means to “take our land”.

Haiti has, in the past, struggled to attract foreign investment because of a lack of confidence in its political system and ability to effectively govern its resources.

Cuba: the cobalt and nickel haven of the Caribbean

Nickel is one of Cuba’s top exports and the country is on course to extract 50,000 tonnes of the metal this year.

Cuba also holds the world’s third largest cobalt reserves and the country’s Moa region is home to a joint venture nickel-cobalt operation by Canadian company Sherritt International and Cuba’s General Nickel Company. Sherritt International is one of the largest foreign investors in Cuba.

Cuba could be interesting to watch through US President-elect Joe Biden’s administration; diplomatic relations were restored under the Obama administration in 2015, while Biden served as Vice President. News of Biden’s election victory was reportedly celebrated in Cuba as the incoming President may reverse some of incumbent Donald Trump’s sanctions on the Communist Party-led country. While few expect the US to lift the trade embargo between the two nations, Cuba’s nickel and cobalt reserves could prove too enticing to a country set to embark on a clean energy transformation under Biden’s administration.

Guyana: a mineral-rich country open to investment

Canadian resource company Goldsource Mines is currently in the Proof of Concept Phase at its wholly owned Eagle Mountain Gold Project in Guyana. According to the company, Guyana contains one of the most prospective, yet underexplored, gold regions in the world.

Guyana is a member of the Caribbean Community, and is the only Caribbean country that is part of mainland South America. Through its Land Tenure Act in 2004, the country declared itself open to foreign investment. Though the mining sector in the country is primarily focused on gold, bauxite, and diamonds, Guyana does contain varying quantities of copper, molybdenum, iron, nickel, and radioactive minerals.

Viewed as a favourable mining jurisdiction for its Westminster-style parliamentary democracy and recent promotion of foreign investment, Guyana has a number of major gold projects, notably Guyana Goldfields’ flagship Aurora gold mine, which began commercial production in 2016. Guyana Goldfields was acquired by Chinese mining company Zijin Mining Group in August 2020.

According to the Guyana Office for Investment, the Government of Guyana is interested in securing large-scale investment for gold and bauxite exploration, as well as the development and mining of the country’s other resources, including copper and nickel.