Top Alumina Producer, UC Russal, Says It is Staying
State Minister in the Ministry of Energy and Mining,
Laurence Broderick says Russian alumina conglomerate, UC
Rusal, which owns 52 per cent of local alumina
production, has reaffirmed their commitment to continue
operating in Jamaica.
Mr. Broderick said "they have successfully negotiated
debt rescheduling arrangements with a consortium of
Russian and western banks amounting to US$11.9 billion,
out of a total debt of US$14.5 billion."
"We have been assured that the company is trying its best to resolve its debt situation, in a manner that will ensure its long term future and involve little or no disposal of existing assets."
UC Rusal currently holds majority shares in West Indies Alumina Company (WINDALCO) which has plants at Ewarton, St. Catherine, and Kirkvine, Manchester, as well as ALPART (Alumina Partners), Nain, St. Elizabeth. This represents 23 percent of the company's overall production output.
Mr. Broderick said that the issue of Rusal's viability,
in the face of the current global economic crisis, was
of concern to the Ministry and, by extension, the
administration.
"Despite the present difficulties relating to the global
downturn in the aluminium industry and their own
financial difficulties, UC Rusal has unequivocally
asserted that they intend to remain in Jamaica for the
long haul."
Operations at the plants have been scaled down since
April of this year, consequent on a fall in demand for
alumina on the world market resulting from the global
economic crisis.
Mr. Broderick informed the House that while UC Rusal
takes the necessary steps to revive their operations,
the Ministry was reviewing options within existing
agreements with the Government, to ensure that the
interests of Jamaica, the administration and workers in
the sector are secured.
A joint bauxite task force has been established, to
closely monitor critical aspects of the closing down
process within the local bauxite/alumina sector and the
possible impact.
Noting concerns arising regarding the "proper" closure
of the facilities, Mr. Broderick said the process was
being undertaken at the directive of Prime Minister
Bruce Golding who had mandated that it be closely
monitored.
Ministries and agencies comprising the task force include: the National Environment and Planning Agency (NEPA); the National Lands Agency (NLA); Water Resources Authority (WRA); the Energy and Mining Ministry, inclusive of its Mines and Geology Division; and the Jamaica Bauxite Institute (JBI).
He said that, since May, the multi-agency group has been working in close collaboration with the bauxite and alumina companies "to ensure compliance with the agreed monitoring regime."
The areas being monitored include: mothballing of the plants; environmental management; land rehabilitation; maintenance procedures; safety; land and reserve management; employee interests; industrial relations; and community outreach programmes.
Mr. Broderick was making his contribution to the
Sectoral Debate in the House of Representatives on
Tuesday July 21.