Australian mining company to import all supplies duty free
…also enjoys right to remit all earnings, to pay no fees locally
Australian Gold producer Troy Resources Limited, recently inked an historic mineral agreement with the Guyana Government to set up a large scale mining operation in Guyana, but some are now questioning the conditions attached to the deal.
Under the agreement inked, Troy Resources will be able to remit all payments, including capital, any interest due or accrued and profits earned, without obligation to pay any fees, duties, taxes, administrative and other charges.
The company will also be exempted from capital gains tax on any transfers of controlling interests in mineral tenements between existing registered holders and the Company.
Furthermore, the company under the agreement will also enjoy a partial excise tax of 10 per cent on fuel, subject to a maximum cap of US$10 per litre.
The Minerals Agreement details all fiscal, property, import-export procedures, taxation and other related conditions for the development and operation of the Karouni project.
Under the agreement, royalty will be paid to Guyana at five per cent for gold when the world market price is less than US$1,000/oz.
If the world market price surpasses the US$1,000 mark, the royalty will be paid at a rate of eight per cent.
The corporate tax rate will be the lesser of the prevailing tax rate or 30 per cent.
Furthermore, Troy Resources will also enjoy the ability to import goods and supplies free of applicable duties and taxes.
The company is targeting more than 90,000 ounces of gold annually, estimating that the medium-scale mine life will be at least for seven years.
Following the signing of the agreement at Office of the President, Troy Resources said that the agreement reduces uncertainty for all parties, bringing transparency, confirming commitments and acknowledging the desire to work together with the Government, in the task of providing for a better investment climate and to move the country forward.
The Karouni Project, located west of the Omai area, in Region Seven, currently employs approximately 200 people. With construction to kick in shortly, it is projected that as many as 500 persons will be employed, including contractors and service personnel.
“The Karouni Project marks the first entry into Guyana by Troy Resources Limited through its wholly owned subsidiary Troy Guyana Inc. Troy’s other projects are located in Para State in Brazil and San Juan State in Argentina. All are focused on gold with the addition of silver in Argentina.”
President Donald Ramotar, who was present at the signing which included Natural Resources Minister, Robert Persaud, and Troy’s Executive Director Project Development, Ken Nilsson, noted that the signing was significant since it demonstrates growing investors’ confidence.
He, too, noted the spin-off effect from the investments by Troy, which included wages and supplies