takes swift action to secure Karouni mining site

THE Government of Guyana has taken decisive action to protect the nation’s interests by cancelling and terminating the Mineral Agreement and Mining Licence issued to Troy Resources Guyana Inc. (TRGI) and its affiliates, Troy Resources Limited and Pharsalus Gold Inc.
This move comes in response to TRGI’s failure to address several critical issues, including unpaid royalties, rental fees, non-compliance with the work programme and environmental management concerns.

The Karouni Mineral Agreement, initially signed on October 16, 2014, was intended to facilitate the development and operation of a mining project at the Karouni Property.
TRGI commenced operations in November 2015 but encountered operational challenges that led to an extended period of “care and maintenance,” beginning in early 2021.
Despite commitments to resume operations, TRGI failed to do so, even proposing the liquidation of its assets to the government. This proposal was rejected, primarily due to the delay in addressing outstanding financial obligations.

One of the significant issues leading to the contract’s termination is TRGI’s unpaid royalties totalling over $2.6 billion, which the government is actively seeking to recover through legal means. In addition, despite disapproval from the Guyana Gold Board (GGB) and suspension of TRGI’s exports owing to unpaid royalties, the Ministry of Finance, during the former APNU+AFC administration in 2019, allowed TRGI to resume exports, which further exacerbated the outstanding debt.
Furthermore, it has come to the government’s attention that Troy Resources had entered into receivership and initiated the process of liquidating its assets and holdings. The abandonment of the mining site by TRGI resulted in unauthorized access, theft, asset destruction, and other illegal activities, posing significant security and financial risks.
Many companies and sub-contractors who provided goods and services to TRGI are owed substantial sums and workers have gone unpaid for extended periods. The Ministry of Labour is actively addressing these labour-related issues.

In response to these critical developments, the Government of Guyana has cancelled and terminated the Mineral Agreement and Mining Licence, taking possession of the Karouni mining site and all remaining materials. This proactive measure aims to ensure the site’s continued viability and to prevent it from falling into ruin.
Several government agencies, including the Guyana Geology and Mines Commission (GGMC) Corp of Wardens; the Guyana Revenue Authority (GRA), and the Guyana Police Force (GPF), are working in coordination to monitor and enforce the government’s actions at the Karouni site.
This step underscores the government’s commitment to safeguarding the nation’s interests, upholding the rule of law, and ensuring that the potential benefits of the Karouni mining site continue to contribute to Guyana’s economic growth and development.