The Government of Guyana, with a commitment to safeguarding the nation’s interests and ensuring the continued contribution of the Karouni Mining Site to Guyana’s economic growth and development, has taken decisive action due to the failure of Troy Resources Guyana Inc. (TRGI) to address various defaults and issues.
TRGI’s defaults encompassed outstanding royalties, rental fees, non-compliance with the work program, and environmental management concerns. Consequently, the Government of Guyana (GoG) has taken necessary steps to cancel and terminate both the Karouni Mineral Agreement issued to Troy Resources Guyana Inc., Troy Resources Limited, and Pharsalus Gold Inc., and the associated Mining License.
Key Facts About the Cancellation of TRGI’s License and Agreement:
On October 16, 2014, the GoG entered into a Mineral Agreement with TRGI and other stakeholders, focusing on the development and operation of a mining project at the Karouni Property.
TRGI initiated operations, with the first gold pour taking place in November 2015.
Subsequently, TRGI faced “operational issues and required organizational restructuring” after a few years of mining operations.
In early 2021, the company went into “care and maintenance” and, despite commitments to resume operations, failed to do so. They approached the government with proposals to liquidate their assets, which were rejected, as outstanding sums were not addressed promptly.
TRGI owes the government over $2.6 billion in unpaid royalties, a substantial financial liability contributing to the license’s cancellation. The Office of the Attorney General has taken steps to ensure the outstanding sums are paid.
Despite disapproval from the Guyana Gold Board (GGB) and the suspension of TRGI’s exports due to unpaid royalties, the Ministry of Finance, under the former APNU+AFC administration in 2019, decided to override GGB export restrictions, allowing TRGI to resume exports and leading to the accrued royalties.
Reports indicated that Troy Resources had entered receivership and initiated the process of liquidating its assets and holdings.
Mismanagement and abandonment by TRGI resulted in the raiding of mining lands, theft of items, asset destruction, and various illegal activities.
Many companies and sub-contractors were reportedly owed significant sums for goods and services provided and were awaiting payment from TRGI. Issues related to unpaid workers have engaged the Ministry of Labor.
In light of this information, the Government of Guyana has canceled and terminated the Mineral Agreement and Mining License, taking possession of the mining site and all remaining materials.
The government has implemented proactive measures to ensure the Karouni mining site remains operational and prevents deterioration. The Guyana Geology and Mines Commission (GGMC), Corp of Wardens, Guyana Revenue Authority (GRA), and the Guyana Police Force (GPF) are involved in monitoring and enforcement patrols at the Karouni site.
