Wed | Aug 23, 2017

Noranda Bauxite Company sold, Gov't in discussions with new owners

Published:Monday | October 24, 2016 | 10:12 PM

Mining Minister, Mike Henry, says his ministry is in discussions with the new owners of Noranda Bauxite Company in St Ann regarding its financial obligations.

Last Friday, Noranda's parent company, Noranda Aluminum Holding Corporation, announced that it received court approval to sell the operations to DADA Holdings LLC, under its affiliate, New Day Aluminum LLC for a purchase price of $24.4 million. 

In a statement this morning, Henry said the Government is committed to protecting the interest of all local parties attached to Noranda in Jamaica.

He says discussions are underway with the new company, New Day Jamaica Bauxite Mining, on the settlement of outstanding monetary obligations to line-staff members, contractors and the government.

According to him, all obligations to the affected parties will be fully honoured by New Day over time on a phased basis, once a schedule is agreed on.

The mining minister says incomplete projects such as land reclamation will be finalised by New Day.

Henry also says the government will be providing a cooperation framework to ensure that new entity has a smooth takeover of operations in keeping with the country’s labour and environment laws.

Henry is expected to brief the Cabinet today on the matter and make a full statement to Parliament tomorrow.