The way has been paved for Australian gold mining company, Troy Resources, to resume its operation here following clearance from the Ministry of Social Protection and the Guyana Geology and Mines Commission.
However, the start date for operations lies in the hands of the company, Minister of Social Protection Amna Ally told Stabroek News yesterday.
She explained that the company has been given all clearance to resume their operations. Ally last night said the company has indicated that they are executing some works and when those are completed they will resume operations. She noted that no definite date for resumption was discussed. The company met with Ally yesterday and related their position.
“We have no problem with Troy Resources. It is up to them when they want to restart operations… but there has been no indication as to when they will,” Ally told this newspaper.
The company was issued with a cease order on October 10 by junior Minister of Social Protection with responsibility for Labour, Keith Scott following the death of geologist Ryan Taylor. Taylor died on October 8 while working on the construction of a “bench” in a mining pit at the company’s Karouni operations. A slippage occurred, which led to him falling and being covered by the rubble.
Meanwhile, a source told Stabroek News that the company has also received the green light from GGMC to restart their operations. The clearance was presented to Troy on Wednesday after the GGMC found that there was no impediment to their resumption of operations.
Troy suspended operations on October 15 after what it said was a knee-jerk reaction by the Minister in the Ministry of Social Protection Keith Scott, who on October 10th ordered a cessation of all mining activities.
Troy in its October 15 statement had said that the cease order had come as a surprise to the Company since the ban included all mining areas rather than isolating the area where the incident occurred.
While the order came in the wake of a death at the site, the company was critical of Scott’s action, claiming that the stop order was inconsistent with normal protocol in such situations. Normal protocol, it argued, is to cordon off the area of the incident, being the Hicks 1 Extension Trench, a process the company had already undertaken immediately after the death. Having taken this action, Troy expressed surprise at the cease order, which covered all mining areas including the Smarts 3 and Larkin Pits, which are not where the fatal accident occurred.
Sources told Stabroek News that the company petitioned government for a reprieve after explaining that a cease order would mean that its entire operations had to be halted.
Some employees complained bitterly about the actions by the company, saying that it was without warning that they were told of the layoffs.
Employees had said that they had not yet been contacted by the company on the way forward but understood that they would not be paid for the period they are laid off.
The company maintained that “employees are not dismissed and can resume their normal duties if, or when activities on-site are able to resume” but had said that under Guyanese Law, a company is permitted to stand down the workforce without pay for up to six weeks in certain cases.
“Troy will not reinstate any of the laid-off employees nor recommence mining and processing activities until such time as the Company has clear approvals from all relevant government agencies,” they said.
The third quarter 2019 gold production figure was the lowest in recent quarters, according to the company’s report. The output for the June 2019 quarter was 11,567 ounces, for the March, 2019 quarter 13,333 ounces and 14,227 for the quarter ended December, 2018. The third quarter of 2019 gold output was 10,042 ounces.
Gold sold for the last quarter was also sharply down. The Troy figures showed that gold sold by the company amounted to 8,783 ounces compared to 12,545 ounces in the preceding quarter. For the quarter just ended, Troy’s All-In Sustaining Cost (AISC) was US$1,374 per ounce while the gold price realised was US$1,465 per ounce.
Troy’s Chief Executive Officer and Managing Director, Ken Nilsson, said “subsequent to the end of the quarter, Troy sadly recorded a fatality at its Karouni operation. Our deepest sympathy goes out to the family and friends of the deceased. All efforts are being made to assist the deceased’s family.
“…the final investigation reports are still awaited from all the government authorities, the completed police investigation has not given rise to any adverse findings against the Company. It is noted that the fatality at Karouni is only the second involving an employee of the Company since it commenced activities in 1984, with the previous fatality occurring at its Brazilian processing operation in 2008.
“Unfortunately, the uncharacteristic and unusual reaction by a government department has caused the need to suspend mining and processing activities and stand down most of the work force. This situation will remain until Troy is satisfied that it can re-start operations with certainty, particularly since there appears to be certain elements engaging in misinformation and decision making based on rumours rather than facts.”
Nilsson added that despite particularly challenging operating conditions in July and August, the September quarter provided some encouraging events and results, in particular the repayment of the Investec debt facility.
Troy poured its first gold bar here in November of 2015.
