…for Facebook post on Disciplined Service vote
It is through these investments that the region developed tremendously, which in turn contributed towards the recovery of the bauxite industry.
In painting a more detailed picture of its diligent efforts in proving its commitment to preserving the bauxite industry, the Government provided an extensive report explaining their role in the industry’s viability.
The press release noted that the Linden bauxite industry was revitalised 10 years ago in December 2004, following the conclusion of the privatisation of Linmine to Omai Bauxite (now renamed Bosai).
It also noted that the Aroaima Mining Company (in the Berbice River) was scheduled to be closed at the end of 2000 following the Unions rejection of a merger with Bermine (Berbice Mining Enterprise Limited). However, the Government, in an effort to save jobs that would have clearly been affected by the collapse, took over the Aroaima Mining Company in November 2000 on the argument that it would operate this company on a cash neutral basis.
Then in 2002, Bermine was on the verge of collapse but again, in an effort to safeguard the livelihood of many, merged with the Aroaima Mining Company.
Further, the Government realised its limitation on its capacity to invest and therefore sought to find a strategic partner to develop the industry, through which the Bauxite Company of Guyana Incorporated (BCGI) was formed.
“In December 2004, investment arrangements and a management contract were executed with RUSAL which took effect in early 2005. The formal privatisation was concluded in March 2006.
Both Linden and Berbice bauxite, since the revitalisation of the industry, is celebrating 10 years plus.”
The PPP/C noted that, over the course of the last 10 years, meaningful changes have occurred as a result of their rigorous intervention.
As it relates to employment, Bosai currently employs approximately 650 persons. BCGI employs over 700 persons. With the recent commissioning of the Kurubuka mines, resulting in stable jobs for the BCGI, 500 local workers will secure jobs for a 15 year period.
Additionally, meaningful changes are evident in the millions of dollars invested in Guyana’s economy. BCGI and its sub-contractors have insvested in excess of US$150 million in the last decade, whereas Bosai invested over US$100 million.
Also, since the companies are no longer privatised, the production for both the industries in Berbice and Linden has increased immensely and the export volumes are notably higher.
Meanwhile, the Government acknowledged the challenges in the commodities market but nonetheless, remains sanguine in the industry’s viability.
“Government remains optimistic that the demand for primary alumina will pick up in the medium term and will create new opportunities and potential for Guyana’s bauxite industry,” the release read.
It noted that with continued expansion and improvements in the production levels and products of the existing companies, overall prosperity in the industry is expected to continue.
When one puts the past few years under review, it is quite noticeable that there has been some 500,000 metric tons increase in the production coming from Guyana. Also, considering the high demand for quality bauxite from Guyana, the Government predicts brighter days ahead for the industry.
The Government also announced that a new bauxite company, the First Bauxite Company’s Bonasika Mine, is expected to be commissioned in 2015, due to the demand for bauxite.
Additionally, there are other companies who have applied for Prospecting Licenses (PL) and are being processed by the regulatory agency of the mining sector.
Over the last 10 years, the Government has expended over G$25 billion on subsidising electricity costs to consumers in Region 10.
The statement noted that in Linden, the Government of Guyana continues to highly subsidise the cost of electricity despite Linmine being privatised over a decade providing in excess of G$22.7 billion in subsidies from 2005 to 2014 for electricity on both the east and west banks of Linden.
Following the privatisation of Aroaima Mining Company Inc. in 2006, the Government made operational a new electricity company in Kwakwani to manage the generation and distribution of electricity and has provided in excess of G$2.5 billion in subsidies from 2006 to 2014.