The Government of Guyana took swift action by revoking the Mineral Agreement and Mining License that had been granted to Troy Resources Guyana Inc. This decision was made in response to several issues, notably the company’s failure to pay royalties.
Following this termination, a contentious blame game ensued between the government and the opposition, each trying to attribute responsibility for allowing Troy Resources to operate without paying its royalties.
Vice President, Dr. Bharrat Jagdeo, shed light on the situation by revealing that, during the tenure of the previous coalition government in 2018, Troy Resources had neglected to pay royalties for 5639 ounces of gold, equivalent to US$7.2 million.
In 2020, the company repeated this violation by not paying royalties for 879 ounces of gold, amounting to US$1.6 million. Dr. Jagdeo firmly asserted that the former administration must acknowledge its role in allowing Troy Resources to evade its royalty obligations.
It’s worth noting that the former Chairman of the Guyana Gold Board (GGB), GHK Lall, has also pointed out the former APNU+AFC regime’s responsibility in Troy Resources’ abandonment of its gold operations in Region Seven, which resulted in billions of dollars in unpaid royalties.
During his tenure, Lall recounted that efforts were made to hold Troy Resources accountable for its agreement with Guyana, which included stopping a gold shipment in 2019 due to outstanding debts. However, the Ministry of Finance opposed this action, despite the owed money. Lall emphasized this point in a recent interview with the Guyana Standard.
The government’s decision to terminate the agreement cited several critical issues that Troy Resources Guyana Inc. had failed to address, including unpaid royalties, rental fees, non-compliance with the work program, and environmental management concerns.
The background of this agreement traces back to October 16, 2014, when the Government of Guyana entered into a Mineral Agreement with Troy Resources Guyana Inc. (TRGI) and other stakeholders, centered around the development and operation of a mining project at the Karouni Property. TRGI initially began mining operations successfully, with the first gold pour in November 2015.
Over the years, TRGI encountered operational challenges and needed restructuring. By early 2021, the company had gone into “care and maintenance.” Despite promises to resume operations, TRGI failed to do so and even proposed to liquidate its assets, a proposition that the government rejected. The primary reason for this rejection was the slow response in addressing outstanding payments.
The substantial sum of over $2.6 billion in unpaid royalties owed to the government became a pressing issue, ultimately leading to the revocation of TRGI’s license. The Office of the Attorney General has since initiated the necessary steps to collect these outstanding amounts.
The government has also assumed control of the Karouni mining site and all remaining materials. To ensure the site’s ongoing viability and prevent it from falling into disrepair, various government agencies, including the GGMC, Corp of Wardens, Guyana Revenue Authority (GRA), and the Guyana Police Force (GPF), are actively monitoring and conducting enforcement patrols at the Karouni site.
