-several proposals submitted, assessments conducted, Natural Resources Minister says

THE Government of Guyana has begun engaging both local and foreign investors to restart mining operations at the former Troy Resources main mine, Natural Resources Minister, Vickram Bharrat, has said.

Speaking on the sidelines of an engagement with local goldsmiths and jewelers on Tuesday, the minister disclosed that while several lots have been provided to small miners, the government is exploring having a local consortium formed to work the main mining pit.

In addition to this, several proposals have since been issued to the government.

“We have a few proposals [and] we have already had talks with the Gold and Diamond Miners Association to see if we can have a local consortium established to engage in the large scale operation at Troy Resources which includes restarting the mill or the processing plant as well as mining from the main pits,” Minister Bharrat told reporters.

Meanwhile, he noted that the government has issued almost 100 small property holdings to local miners to operate on the property.

“The small scale mining that is ongoing now, is not from the main pits, it is not from the area that is in and around the processing plant. We have reserved that area in the interest of finding another investors be it local or foreign investors.”

The government, he said is currently in the process of examining the proposal that have been submitted and those interested investors have also conducted their own assessments.

“We have had a few proposals that we are looking at presently. They [investors] themselves would have gone into the property and did some assessments on the plant and what exist there and the resources that are available .To date we have not finalised any agreement with any investors with regards to that,” the minister said.

He disclosed further that the government through the Attorney General Chambers is also in the process of trying to recoup outstanding amounts by liquidating assets that the company might have had here.

Back in 2023, the government had taken the 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.

Additionally, 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 was noted 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 unauthorised 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.