Gov’t exploring foreign investors to revive Troy Resources mine

The government is actively exploring proposals from foreign investors to operate on the main gold mining pit of the former Troy Resources mine.

Minister of Natural Resources, Vickram Bharrat, provided the update on Tuesday following an engagement with goldsmiths and jewellers at Duke Lodge in Kingston, Georgetown.

In December last year, President, Dr Mohamed Irfaan Ali announced the government’s plan to have a local consortium formed to operate in the main mining pit.

Minister Bharrat confirmed that this process is ongoing and has included discussions with the Gold and Diamond Miners Association.

He explained, “We have a few proposals. 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.”

In October 2023, the government terminated the Mineral Agreement and Mining Licence issued to Troy Resources Guyana Inc. (TRGI) and its affiliates, Troy Resources Limited and Pharsalus Gold Inc.

The decision was taken in light of the company’s failures to address its defaults on several key areas, including royalty payments, rental fees, work programme adherence, and environmental compliance.

Since then, the government has assumed management of the Karouni Mining Site, previously operated by Troy Resources.

The government is aggressively working to ensure the continued viability of the Karouni Mining Site and prevent its decline.

Several other agencies, including the Guyana Geology and Mines Commission (GGMC), Guyana Revenue Authority (GRA), and the Guyana Police Force (GPF) are involved in the monitoring patrols at the site.

“The Ministry of Natural Resources task was to secure the property, which we have done and we have been policing it and monitoring that property,” Minister Bharrat noted.

He said 100 Guyanese miners within the area have been granted property holdings, and are currently operating and producing to maintain gold production.

The natural resources minister added that the ongoing small-scale mining is being operated in the areas surrounding the processing plants, and not the main pits.

“We have reserved that area in the interest of finding another investor, be it local or foreign investors. We have had a few proposals that we are looking at presently,” Minister Bharrat said.

He added, “They themselves would have gone into the property and did some assessment on the plant and what exists there, and the resources that are available as well.”

However, the government has not yet finalised any agreements with any investor.

A statement issued last October revealed that TRGI owes the government above $2.6 billion for unpaid royalties.

The office of the Attorney General is taking the necessary actions to have these funds recovered.