Thu | Jan 18, 2018

Cabinet approves Noranda takeover

Published:Tuesday | October 25, 2016 | 12:04 PM

The Mining Ministry is indicating that the Cabinet yesterday approved the Letter of Intent for the takeover of the Noranda Bauxite Company in St Ann by American company New Day Holdings LLC.

The Jamaican Government has partial ownership in the company.

In an advisory issued today, the mining ministry said a signing ceremony for the Letter of Agreement has been scheduled for tomorrow morning at 9 o’ clock.

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

Noranda is in the process of deposing of its assets to settle debts to creditors.

Yesterday, Mining Minister Mike Henry, said his ministry is in discussions with New Day regarding its financial obligations to local parties.

Among others, Noranda owes millions of dollars to staff and billions in unpaid taxes to the government.

Henry stated that all obligations to the affected parties will be fully honoured overtime by New Day once a schedule is agreed on.

Henry is scheduled to make a statement on the Noranda takeover in Parliament this afternoon.