Another withdrawal from the CDF approved by House
The House of Representatives has approved the withdrawal of up to $12 million from the Capital Development Fund to settle outstanding debts to Glencore.
Minister of Finance and Planning, Dr Peter Phillips explained that the funds will be used to settle the last quarterly payment due to Glencore in the 2014/15 financial year.
The debt to Glencore is being settled in equal quarterly payments with interest at eight per cent per annum up to the 2016/17 financial year.
Yesterday, Phillips explained that Jamaica Bauxite Mining entered into an alumina supply arrangement in 2002 with Glencore, to facilitate the borrowing of some US$65 million.
However, he noted that in 2008 due to the slowdown in the global economy and the closure of UC Rusal’s operations, JBM experienced severe difficulties in meeting its obligations to supply some 255,000 tonnes of alumina to Glencore.
He said by December 2012 when the supply contract ended, Jamaica Bauxite Mining’s debts to Glencore totalled US$33 million.