CubaTrade-April2017-FLIPBOOK

R
MINING
Getting Ready for the
Building Boom
Rose Petroleum hopes for an exclusive deal in Cuba
to mine gypsum, an ‘essential input’ for construction
supplies. Next: oil and gas licenses
STILL THE ONLY CUBE OF ITS KIND.
By Oscar Musibay
Long-Standing Brands that Set the Standard
With tourism-driven construction set to
boom in Cuba, British oil, gas, and mining
giant Rose Petroleum PLC is negotiating
to become Cuba’s exclusive producer of
gypsum. A soft mineral found in abundance
on the island, gypsum is used to
manufacture wallboard, cement, and
plaster of Paris.
Rose CEO Matt Idiens says his firm,
through its wholly owned subsidiary, Rose
Gypsum Ltd., won a competitive process
after the Cuban government issued its
requirements for a bid. Gypsum assembled
a technical presentation that involved
working with Italian and German
engineering companies, besting four other
applicants—though Rose still needs to
complete negotiations. Idiens told Cuba
Trade that it was in “an ongoing process”
with state entity Empressa Materiales de
Construcción (EMC).
Rose Gypsum was selected thanks
to its technical and professional expertise,
said Idiens, following talks with EMC
and the Cuban Ministry of Construction.
Rose Gypsum is negotiating to become
the project’s joint operator, distributor and
manufacturer. If the deal goes through,
Rose Gypsum would become the sole
manufacturer of gypsum-related products
in Cuba—in particular wallboard.
For Rose Petroleum, which also
mines for oil and gold in Mexico and
shale in the United States, the processing
of gypsum would be a shot in the arm; low
world prices for oil and gas have kept that
division of the company in the doldrums.
“It’s a huge opportunity in a very
strong, growing market,” Idiens told
Proactive Investors media last summer.
“I’m sure everyone is aware that Cuba is
one of the few places in the world where
growth is exponential at the moment and
will continue so, in my view. Tourism is
growing there. It’s just leaps and bounds
[and] the construction industry itself, if
they don’t fulfill the requirements, then
tourism is going to struggle because there
simply won’t be enough hotel rooms.”
London-headquartered Rose
(LON:ROSE) began bidding for the
mining concession in March 2016, characterizing
the multiple requirements as an
Rose Petroleum expects to mine gypsum
from Cuba quaries like the one above in
Chile; it will be used to create wallboard
for home and office construction
“extremely challenging process.” Although
Idiens declined to tell Cuba Trade the
cost of the plant, he confirmed that his
company would employ locals for mining
and manufacturing.
In a January press release, Rose also
fleshed out its on-island progress in oil
and gas, noting that “good relationships”
with Cuba were yielding ancillary opportunities;
Rose has been in early stage
discussions regarding licenses with Cuban
national oil company CUPET. Energy
experts believe Cuba has more than one
billion barrels of recoverable oil.
Meanwhile, the demand for wallboard
must be met. Idiens said once his
company signs a contract with the Cuban
government, it will take 12 months to
begin producing construction materials. H
www.TheLegacyCompanies.com
30 CUBATRADE APRIL 2017