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Troy Resources' Gold License Revoked, Government Assumes Control of the Mine

Special reporter, New York, USA

In a recent announcement, the Government has declared the termination of the gold license previously held by Troy Resources Guyana Incorporated (TRGI), an Australia-based company that has now exited Guyana, leaving a debt of over $2.6 billion to the state.

The Government further explained that it has revoked both the Karouni mineral agreement and the license granted to Troy Resources and Pharsalus Gold Incorporated for gold mining activities in Guyana. In addition, control of the Karouni mine in Region Seven has been transferred to the Guyana Geology and Mines (GGMC), the Guyana Revenue Authority (GRA), and the police, to ensure proper oversight.

A map of the mine

The termination of the license was primarily due to Troy's failure to meet financial obligations, including unpaid royalties and rental fees, as well as non-compliance with environmental regulations set by the Environmental Protection Agency (EPA) and the work program.

The Government emphasized its commitment to safeguarding the nation's interests and ensuring that the economic benefits associated with the Karouni mining site continue to support Guyana's growth and development.

It has come to light that Troy Resources has entered into receivership, a process where creditors sell a company's assets to recover owed debts. Troy initiated this process, but due to poor site management, individuals have been trespassing the site and stealing equipment and materials.

The Karouni mine in Region 7

The company owes the Government over $2.6 billion in unpaid royalties, a substantial financial burden that, coupled with other concerns, led to the license's cancellation. The Office of the Attorney General is actively pursuing the collection of these outstanding sums.

To prevent the Karouni mining site from falling into disrepair, the GGMC, Corp of Wardens, GRA, and the Guyana Police Force (GPF) are actively involved in monitoring and enforcing security at the site.

The previous A Partnership for National Unity/Alliance For Change (APNU/AFC) Government had overridden the Guyana Gold Board's (GGB) export restrictions on Troy Resources in 2019, despite GGB's disapproval and the suspension of Troy Resources' exports due to unpaid royalties. This allowed the Australian company to resume its exports, further accumulating royalty debts.

The Government has also confirmed that several companies and sub-contractors are owed significant amounts of money by Troy. Additionally, there are workers who have gone unpaid for extended periods, and the Ministry of Labour is addressing these issues.

Given the information above, the Government of Guyana has canceled the Mineral Agreement and Mining License, taking possession of the mining site and all remaining materials.

The agreement between the then People's Progressive Party/Civic (PPP/C) Government and TRGI in 2014 was centered on the development and operation of the Karouni Property mining project. TRGI commenced operations in 2015 but encountered operational issues and required restructuring a few years later. The company went into a state of "care and maintenance" in early 2021 and failed to resume operations despite commitments to do so. The company had proposed liquidating its assets, but the Government rejected these proposals due to the slow resolution of outstanding debts. Nonetheless, the Government had remained engaged with the company in hopes of restarting mining operations and settling financial obligations.

Newell Dennison, GGMC Commisioner

GGMC Commissioner Newell Dennison confirmed that Troy has left Guyana, leaving behind a $2.6 billion debt, and had been sent a demand letter by the Attorney General Chambers since September to address its outstanding debts.

Special reporter, New York, USA

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