Swedish newspaper report on gold mining…Aussie firm, Burrowes deny criticising Govt.

A Swedish newspaper report published last month which placed the gold mining sector in a bad light has sparked

Troy Resources’ CEO, Ken Nilsson

strong condemnations from one major investor and the country’s regulatory body, the Guyana Geology and Mines Commission (GGMC).
A Google-translated copy of the article, under the headline “The Gold Rush Is Leaving Wounds That Never Heal” was published yesterday by Kaieteur News. It was carried on November 14, 2014, in the Swedish newspaper, DN.se.
The content of that news report was refuted by angry officials who said that it was largely inaccurate. The report, which focused on life in the gold bush, painted a picture of a corrupt industry that involved illegal Brazilians and a Government that had its hands in it. The majority of profits are being taken out with little benefits left for Guyana.
The article quoted Keith Burrowes, Head of Guyana Office For Investment (GO-Invest) as saying that “We (Guyana) have sold out our independence. And what do we get back? Nothing.”
“We do not even know how many gold miners there are in the country. The government has lost control,” Burrowes reportedly said.
The article also quoted Allan Woolford, the Director of Red Cross, who believed that the poisoned water is a result of the government not caring enough about consequences. “The government knows that it is hated and will not be re-elected. Therefore, they sell out concessions now. They are trying to make as much money as possible before they resign.”
Chief Executive Officer, Ken Nilsson of Australian mining company, Troy Resources Ltd, also gave an interview. “I see great potential in Guyana. The problem is their government. We want to be transparent, but it would not they be,” he says in the translated version.
The report sparked swift reaction from the named parties, including GGMC.
Burrowes in a statement made it clear that the information presented in the report was totally inaccurate. The investment head insisted that he is “very stringent’ with respect to granting interviews and would ask to vet articles

Keith Burrowes

before they are published.
Burrowes believed that the article by the Swedish newspaper was an effort to tarnish his relationship with the Government. “I wish to reiterate my loyalty to the current Government and will not indulge in this kind of nonsense, since I believe that this is not a misreporting on what I said, but is linked to current political situation in Guyana.”
Yesterday, the Ministry of Natural Resources and the Environment, which has responsibilities for the mining sector, wrote Troy Resources asking for clarifications on the purported statements by its CEO.
Nilsson, in a statement, said that the reported wording was drawn from a short interview at Cara Lodge some time ago and printed without permission. He was not given the opportunity to comment on the piece before publication.
“The article as presented is misleading, with the comments taken out of context; in addition the translation appears to be very sub-standard. At no time was there any derogative comments made as regards the Government of Guyana or the management of the Ministry of Natural Resources and Environment.”
GGMC, which monitors mining in Guyana, also had a statement.
Deputy Commissioner, Newell Dennison, made it clear that the reporter did not explain what he meant that “the revenue from the gold disappears abroad”.
“Investors do not undertake major investments without the aim of receiving adequate financial returns. Moreso, free flow of capital is encouraged, hence the initial investment being undertaken.”
GGMC said that there are no special privileges for Brazilians or any other group. Rather, Brazilians are expected to be in conformity with the national laws and regulations.
The regulatory body stressed that mining activities are not undertaken in a haphazard manner as suggested by the report with measures in place to protect the environment. This is built in with the terms and conditions of mining permits and licences.