The value of the millions of dollars’ worth of Troy Resources assets that were seized by the People’s Progressive Party/Civic (PPP/C) Government is still being assessed. However, in an effort not to let the gold in the area go to waste, the Government has started allocating claims in Troy’s former holdings to small miners.
At a press conference on Tuesday, Natural Resources Minister Vickram Bharrat spoke about the Troy Resources debacle that has seen the company exiting Guyana owing over $2 billion to the state. At present, agencies such as the Guyana Geology and Mines Commission (GGMC) and the Guyana Revenue Authority (GRA) are dealing with the assets left behind.
Bharrat noted that while a detailed assessment of Troy’s assets that have been taken over by the state has not yet been done, if one compares it with other large gold mining companies, it is likely to be hundreds of millions of United States (US) dollars.
“Troy Resources, in terms of the value of the property and what we would have acquired, again it’s a multi-agency approach. GRA is involved in it. We know that GRA would have secured a number of assets on site, in containers. GGMC has taken over the site with the processing plant. But if you look at the establishment of a new (mine)…let’s take Zijin for example. Aurora Gold Mines was acquired by Zijin from Guyana Goldfields. Zijin acquired that property and processing plant and everything for over US$200 million in 2020. So, I’m just giving you an idea, I’m not telling you that’s the value of Troy’s property,” the Minister explained.
During his press conference, Bharrat also expressed worry about low gold declarations, and noted that there are several reasons for the low gold declarations. One such reason is the exit of Australian company Troy Resources from Guyana still owing billions.
“We have seen also the closure of Troy. And we mentioned that, you know what is the reason for Troy Resources (closing). And in our budgeted declaration for 2023, we were expecting Troy Resources to restart production and to offset liabilities to the Government. However, we would have known what would have happened to the company.
“However, what we are doing as a Government, we have identified an area within the formerly Troy Resources property, and we’re allocating claims to small miners, Guyanese small miners. To date, we have awarded over 50 claims to over 50 local miners. And this process is being done by way of a lottery, so it’s a fair process,” the Minister said.
The Minister explained that many of these small miners have already moved into the area and started mobilization. He noted that with small miners constantly complaining about access to land, they now have that opportunity.
Troy Resources, the Australian company that was operating in Guyana since 2015 and at one point was one of the largest gold producers in Guyana, has exited Guyana while leaving behind billions of dollars in owed royalties.
In September, the Legal Affairs Minister had written a demand letter to Troy Resources, after its efforts to pack up shop with over $2.6 billion in royalties owed. At the time, the company was given 60 days to clear its debts.
