Fri | Mar 23, 2018

Noranda takeover deal must be signed in five days to save jobs, says Henry

Published:Wednesday | October 26, 2016 | 5:58 PM

The government has informed that hundreds of Jamaicans could be out of a job at the end of the month if it does not sign an agreement for the takeover of Noranda Bauxite Company within the next five days.

The mining ministry had said a signing ceremony for the Letter of Agreement for the sale of the company to New Day Holdings LLC had been scheduled for this morning at 9 o’ clock.

However, the signing was postponed after the opposition yesterday called for a halt to the proceedings until the Parliament can be provided with information about the company.

This afternoon mining minister, Mike Henry, provided the answers but the opposition was still uneasy, particularly with the scrapping of the bauxite levy for a profit-sharing arrangement.

Opposition Spokesman on Finance Dr. Peter Phillips questioned whether there was time for other companies to present a proposal better than New Day's.


Opposition spokesman on finance, Dr. Peter Phillips

IN PHOTO: Mike Henry

Henry noted that the sale of the St. Ann operations was part of bankruptcy proceeding involving parent company Noranda Aluminium Holding Corporation in the US and the court supervised process requires that the agreement be signed by October 31.

He also explained that the company’s creditors will curtail funding by October 31 and the government was moving quickly to ink a deal to save jobs:


Mining Minister, Mike Henry

He said he would be willing to consider other proposals if they are submitted within the five-day window.