The large scale mining contract that Australia-headquartered mining company, Troy Resources, has with Guyana stipulates that it must legally comply with a land reclamation process and other environmental obligations, as set out by the Environmental Protection Agency, before leaving the country.
But with the abrupt closure of its mining operations, the company’s compliance with its legal obligations remains unclear.
Though the company announced that it was moving in the direction to liquidate its assets, it is still to notify the government of its exit plans, which makes unclear what aspects of the contract would be enforced and against whom, given that none of the foreign directors are in Guyana. The Contract says that Troy Resources may terminate “this Agreement by giving six (6) months written notice to the GoG and the Commission” provided that it “shall have the right to retract in writing its notice at any time prior to the expiry of such notice period.” The GOG has, under its rights, the entitlement to also terminate the agreement if the company breaches or defaults on any of its commitments. It said that in the case of termination, and “subject to clause 18.5 hereof, [shall] remove and otherwise deal with its property in Guyana as provided in clause 18.6; 18.4.2 restore the areas used and damaged as provided in clause 6.4 and the ESIA” and “pay any fees due hereunder up to the time the termination becomes effective; submit complete reports and evaluations, maps, assays, samples, drilling tests and related articles to the Commission.”
