Guyana gives more than US$35M in waivers to Troy Resources in past five years

May 25, 2021 News

…as country gets about US$85,000 in royalty

Kaieteur News – Troy Resources, an Australian based gold mining company in Guyana, has over the past five years, saved some US$22 million in fuel imports alone and has also benefitted from another G$2.5B or U$13M in tax breaks between 2016 and 2018.
It would mean that the country gave about US$35M in waivers for fuel and tax breaks to the company during the period mentioned.
Guyana was paid on the other hand, G$17M or US$85,000 in royalties from that company during the same period, 2016 to 2018.
As such, it would mean Guyana received G$17 million for the two years or about $8.5 million each year in royalty or US$42,500 every year.
As it relates to the fuel waivers, this publication has learnt that the company imports on average some 19 million litres of diesel annually for its operations.
This works out to 5,019,269 gallons of fuel. Diesel is sold at $182 per litre, meaning a 25 percent saving would see the company paying $45.5 dollars less in fuel imports.
As such, this would mean that the company saves some US$4.5 million yearly or US$22 million over the past five years.
Troy Resources has been in operation in Guyana since 2013 when it took over the Karouni Project from Azimuth Resources and has been mining ever since.
The company enjoys similar concessions to that afforded to the principals for the Aurora Gold Mines—now Zijin Mining Group.
That company pays only 10 percent excise duties on petroleum imports.
Guyanese are subjected to a standard excise rate of 50 percent—a rate that was last revised downwards to 35 percent on February 18, last, in order to cushion against the higher fuel prices on the world market to be reverted again when prices rebound.
Troy Resources, recently announced that its operation is realising an average of 2,200 ounces of Gold from its operation this year but noted that having mined out its Hicks 4 and Spearpoint mining pits, it has since secured another lucrative concession in Guyana—20 kilometres South of its present operation—in the gold rich Potaro locale, an area, which it had identified as a ‘must have’ target.
The company made the announcement last week Monday, by way of a public missive to shareholders, and said, the secured tenements adjacent to its 100 percent owned Karouni Gold Project in Guyana, “is considered to be highly prospective for large-scale gold discovery. “
With the new claim secured, the company said it increases Troy’s landholding, to an area of approximately 3,000 hectares.
The Aurora Gold Mines’ operation was halted in July last and was not restarted until after the takeover by Zijin Mining Group in November.
The Zijin Mining Group acquired the mine from Canadian owned Guyana Goldfields, which had acquired the licence for the Aurora Gold Mines, and as such, enjoys provisions that were enshrined in the contract for the operations in the Cuyuni-Mazaruni locale.
Additional provisions provided as incentives for the foreign based company includes waivers on imports for other machinery, equipment and other personal items.
This, in addition to there being a sliding scale for the payments to be made—five percent royalty when gold is sold for US$1,001 and below, or eight percent when sold at one cent above that price.

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