State-owned National Quarries (NQ) is toying with the idea of building houses on its sprawling 2,600-acre quarry at Turure in Valencia, as part of its drive to clear a $35 million debt, chairman Keshwar Maharaj says.
The matter was discussed by its seven-member board but no final decision has yet been taken.
“It is on discussion right now,” Maharaj said in an interview at his Arouca office on Wednesday.
“We have a lot of things we can do...like building houses.”
Maharaj said construction of homes was one of several ideas NQ had thrown out as it continues to diversify and create a strategic approach for the company’s upward mobility. The company had undertaken a comprehensive review of its operations and emerged with a profit-oriented focus, he said.
Last year, NQ established a successful agricultural project at Turure, also known as its Sand & Gravel Division, to earn income since it does not receive subventions from the Government.
“We generate our own funds,” Maharaj pointed out.
Maharaj said if its Turure quarry was properly managed, it had the potential to turn into a flourishing eco-tourism destination for visitors and locals.
The quarry’s land space was vast, Maharaj said. “We have lands in there, you know. Inside of Turure has over 2,000 acres. So if we take 100 acres you know how many houses you can build on that?”
NQ’s Web site lists Turure’s total acreage at 2,600.
Although deep craters are visible due to the quarry’s mining there, some areas are covered with greenery and thick vegetation along its dirt roads. Overlooking the breezy hilltops one can also see the Caroni plains and the extensive land mass has a breathtaking view at strategic points.
Turure is one of two quarries from which NQ extracts aggregate. The other is at Verdant Vale, Blanchisseuse, which has approximately 117 acres.
Asked how many houses they were looking to construct, Maharaj replied, “We don’t know, as I say, it is just something.”
Questioned if they would partner with the Housing Development Corporation should the company’s plans become a reality, Maharaj shook his head in the affirmative. But he said he had not discussed the matter with Housing Minister Dr Roodal Moonilal.
“It was suggested before. As I said, we want to make sure that when we get into something, we do something that is feasible.”
Land wasting
Stating that the country’s land space for housing was dwindling, Maharaj added, “So we could build some high-end houses. We could have a man-made lake and things in there.” He said NQ could build the houses and make it into a gated community which would create a different ambience.
Maharaj said all NQ needed was capital.
“We already have the aggregate for construction.”
If they were to start construction of 100 homes, Maharaj said, they would need about 12 acres of land.
“If you looking at 5,000 square feet, which is the standard size of a lot of land, about eight houses would fit on an acre of land. So that is 12 acres of land.”
He said three additional acres could be used to develop roads.
At Turure, Maharaj said, NQ had been looking at other projects, one of which was a ceramic industry where they could convert raw materials into tiles. NQ has also held discussions with the T&T Automobile Association to create a monster truck circuit as well.
“Wasted land is wasted money. Acreages that are used and cannot be mined again we just cannot leave it idle.”
He also does not believe that NQ is spreading its wings too fast, stating the initiatives undertaken in the last few months have not had a negative impact on its financial and technical resources.
“We are doing it on a phased basis by bringing programmes and initiatives into the company.”
Inherited situation
Following his appointment 15 months ago, Maharaj said, he was faced with a $35 million debt the company had incurred.
“There were royalties which were outstanding over the years which we never paid to the State. That would have been about $20 million,” he said.
The royalties have to be repaid to the Ministry of Finance.
The remaining $15 million was owed to Malaysian-based Sunway Quarries Industries (Caribbean) Ltd for processing and crushing of materials at Verdant Vale. Sunway left Trinidad last October after Government failed to renew its contract.
Maharaj said NQ has negotiated a settlement with Sunway, which they were still paying. But, he said, they had found innovative ways to repay their debts.
“We will continue to pay as we source funds from sales.”
He said by the end of 2015 the debts should have been settled and the company would be on a firm footing.
Though the profits they have been making are being used to pay off debts, Maharaj said, “We want to treat National Quarries as a private sector company. It has not created a burden on the State.”
Attempts to contact Moonilal about NQ’s housing idea were unsuccessful up to yesterday, as he did not return calls or e-mails.
...starting new quarry in Grande too
Next month, the Ministry of Energy will grant National Quarries (NQ) a licence to operate its third quarry at Brigand Hill, Sangre Grande, which has more than $2 billion worth of limestone.
The licence will pave the way for the mineral to be mined from the ten-acre quarry, which will be used for government’s road paving projects and the construction sector.
Among the road networks to be completed is the country’s $7 billion extension of the Solomon Hochoy Highway to Point Fortin.
Aggregate will also be needed for the proposed construction of a $16 billion highway from San Fernando to Mayaro and developmental projects, mainly the building of homes under the Housing Development Corporation.
Limestone is a hard sedimentary rock used in the making of cement and building materials.
NQ chairman Keshwar Maharaj said in an interview that as road paving and developmental projects intensified, contractors, batching plants and hardwares would require a larger volume of limestone.
NQ currently mines from two quarries at Valencia and Blanchisseuse.
In January, Maharaj said, NQ and the Tobago House of Assembly (THA) had also agreed upon a bartering system with materials.
The THA extracts aggregate from the Studley Park Quarry.
“We are working on a bartering system...so there is no cash involved between the two entities.”
Maharaj said the THA needed NQ’s sharp sand for construction and road paving, while they would supply them with aggregate.
“The THA trucks will load their materials and bring it to us. They in turn will load up our materials and take it back to Tobago on the boat.”
Maharaj said both organisations would start with the exchange of 1,000 cubic yards of minerals.
“By next month a licence will be issued by the ministry to operate a limestone quarry at Brigand Hill. We would have materials for over 20 to 30 years, given the demand in the construction industry.”
NQ estimated the quarry has approximately $2 billion in limestone, he said.
As it stands now, Maharaj said, the demand for aggregate far exceeded its supply, which sometimes resulted in Government importing from the Dominican Republic and other regional countries.
“This quarry will help when there is a shortfall.”