Gov't reaches interim agreement with Noranda to settle levy debt
The Finance Minister Dr Peter Phillips says the Government has now reached an interim agreement with Noranda Bauxite to settle the dispute over the payments of bauxite production levy.
In a statement this afternoon, the Government said the agreement provides for immediate cash payments and irrevocable letters of credit by Noranda, pending the completion of arbitration to resolve outstanding issues between the parties.
According to the Government, the agreement will remain in effect until December 31, or upon delivery of the arbitration award, whichever comes earlier.
In the meantime the Government is staying an interim court injunction seeking to restrain Noranda’s export of bauxite from Jamaica, because it had stopped the payment of bauxite levy on exports.
The panel of arbitrators has been asked to rule on the amount due to the Government as production levy; as well as, how to satisfy this payment.