Australian gold mining company, Troy Resources Guyana Inc says that by the end of its first three years, Guyana’s Gross Domestic Product (GDP) would have seen an 8.7% increase as a result of its activities.
In a project update advertisement in Thursday’s Stabroek News, Troy Resources said that its Karouni Project in Region Seven (Cuyuni/Mazaruni) will also see direct payments to the government via royalties and corporation and other taxes of over US$100m within the three years. In the past, the operations of big companies like Omai Gold Mines Limited had been severely criticized for the non-payment of corporation tax.
“The economic impact in Guyana from Troy’s project is large, and if one considers flow-on effects into the country through salaries, wages, taxes, and local purchases of goods and services, it will be significant even for a medium size operation like Karouni”, Troy said.
Troy had originally expected to begin full operations in July but this has now been postponed to September because of rain and the late supply of some equipment. The company has however already begun mining and has stockpiled a significant amount of material to be processed once the full operation begins. More than 500 workers are presently employed at the mine. The mill and the thickener are the two major facilities left to be completed.
Meanwhile, the company disclosed that it last year excised the 14 Mile Issano Landing area from its mining licence application since the residents wanted to remain at the location and the company decided to facilitate this after months of discussions. Originally, it was expected that the 100 persons residing there would have to relocate as the 14 Mile Issano community was located within the footprint of the proposed open pit.
The advertisement said that the “company indicated that they would no longer pursue the area since the exploration could not proceed at that time and has consented to the residents’ demand so the area was excised from the company’s mining licence application. The altered mining licence area was subsequently approved and a mining licence issued. The area in question still remains as part of the company’s tenements in the Region for which it (pays) the annual rental”.
14 Mile Issano has been in existence for around 30 years and several individuals reside and operate businesses there.
Troy Resources said that it is continuing its partnership efforts with 72 Mile Kaburi Village. The Kaburi Sewing Group has been retooled and will sew curtains for all of the units at the camp site.
Troy is one of two major gold mining operations to take off this year. Canadian mining company Guyana Goldfields is to start gold production at its Aurora Gold Project shortly and expects to produce between 30,000 to 50,000 ounces of gold in 2015.
These two major operations are however launching at a time when gold prices are on a downswing. Gold was at a five-year low last week of US$1,094.5 per ounce after a 12-year bull run beginning in 1999 that saw it coming close to US$2,000 per ounce.
