-President hails it as a ‘tangible demonstration’ of investor confidence

THE Ministry of Natural Resources and the Environment (MRNE) and the Australian Mining Company Troy Resources Guyana Inc. inked a multi-million dollar mineral agreement, another development of the company’s Karouni project in Region 7 (Cuyuni/Mazaruni).

The agreement was signed by Minister of Natural Resources and Environment, Mr. Robert Persaud and Troy Resources representative, Mr. Ken Nilsson, yesterday, at the Office of the President, Shiv Chanderpaul Drive, Georgetown.
The total investment committed to date is approximately US$43M, with a further $27M required to complete construction. Major purchases and service contracts have been entered into with local service providers and manufacturers as well as other Caribbean manufacturers.

The mineral agreement sets the operating parameters for the company and also defines the responsibilities of both parties. The agreement also reduces uncertainty for all parties as it is transparent, confirms commitments and acknowledges the desire to work together with the Government in the task of providing for a better investment climate and to move the country towards a better tomorrow.

TANGIBLE DEMONSTRATION
President Donald Ramotar, in brief remarks, stated that the agreement represents another “tangible demonstration” of investor confidence in Guyana and is another sizeable investment in the country’s productive sectors.
“This represents another tangible demonstration of the confidence being shown by investors in our economy. In recent times

we have been having sizeable investments…this is very good for us,” he said.
According to him, the agreement is an important one considering its potential for job creation, the transfer of technical skills and expertise and other spin-off benefits that will stimulate activity in other sectors, including the agricultural sector.
The President said that as Guyana makes greater moves to become an important player in the gold market, investments like these also represent an opportunity for focus on value-added products.
“As we become a more important producer in the gold industry, I hope that we can attract investment in the jewellery sector and in refining of our gold, so we can add value to what we produce,” he said.
Acknowledging that gold is a non-renewable resource, Mr. Ramotar stressed the need to maximise on the benefits of the natural resource.

He stated that in this way there is greater wealth generation, among other benefits, all of which will improve the standard of living for Guyanese.
“We welcome this investment and we welcome the confidence shown in our economy and I am sure it will bring benefits to our country,” the President said.
The Troy Resources representative made it clear that his company was confident in the local economy. “There is no doubt there will be benefits…it is a strong endorsement, our belief that we will have success in Guyana,” Nilsson said.
He also reiterated the view that there is enormous potential for economic benefit was the Troy Resources representative.
Nilsson stated that the company’s partnership with the Government of Guyana will result in the “flow-on” effect, as it relates to economic benefits, which includes salaries, wages, taxes, local purchases of goods and services.
“There is no doubt that the flow-on effects can be fantastic…I rather buy from Guyanese providers than from the US or other

where else…we will continue to be supportive,” he said.
The Troy Resource representative also committed the company to training and education, as well as the transfer of skills.
“This is a significant step for us and it is a real partnership between us and the Guyanese people…it is a good partnership and it will help all,” he said.

SIGNIFICANT INVESTMENT
Persaud noted: “This represents a significant investment in the mining sector, coming at a time when we have had some amount of predictability, in terms of outlook and so on…the fact that we were able to move forward with this agreement, makes it clear that investor confidence is sound,” he said.
According to him, Government has created conditions that not only encouraged economic growth, but also foster investor confidence, particularly as it relates to foreign direct investments.
“We want to ensure that we do business in Guyana the correct way and that we do what is best for the people of Guyana,” he said.
The minister added that the agreement has had input from several stakeholders to ensure the best arrangement was made.
“This agreement will certainly be one in which all Guyanese will be proud of-that as regulators and as Government, we are administering the affairs in the interest of the people and to bring about maximum benefits,” he said.
Persaud pointed to the company’s track record and noted that it is expected that the company will meet its responsibilities, environmental, social and corporate.
Guyana Geology and Mines Commission (GGMC) Chairman, Mr. Clinton Williams, who also witnessed the signing, assured that the company has the full support of the Commission.
The Karouni project currently employs approximately 200 people in various disciplines and a substantial increase is expected over the coming month in anticipation of the increase in construction activities. It is projected that at steady state the number of employees at the project will settle to around 500 including contractors and service personnel.
To date the company has constructed a registered all weather airport at the project site and is currently continuing with road upgrades on the roadway from Linden to the Project site.
The Karouni project marks the first entry into Guyana by Troy Resources Limited through its wholly owned subsidiary, Troy Guyana Inc. Troy’s other projects are located in Para State in Brazil and San Juan State in Argentina. All are focused on gold with the addition of silver in Argentina.

(By Vanessa Narine)