Tue | May 23, 2017

Opposition wants clarity on bauxite levy regime

Published:Monday | March 20, 2017 | 3:48 PM
Dr Peter Phillips speaks during a PNP post-Budget press conference held at the PNP headquarters on Monday.

Opposition Spokesman on Finance, Dr Peter Phillips, says the Government needs to give more details on the bauxite levy regime including why a waiver extension has been granted to Windalco.

Speaking this morning at a press conference, he said he has been informed that New Day/DaDa Holdings, the new parent company of Noranda bauxite, is paying US$1.50 per tonne for bauxite mined.

However, he said that charge is not a royalty and is also below the US$7.56 rate under the levy.

He said the government needs to say what the charge is for.

Meanwhile, Dr Phillips said there has been no justification for the extension of the waiver on the bauxite levy to Windalco, which is operated by the Russian company, UC Rusal.

According to him, the market conditions now are not like in 2007/2008 when the initial waivers were given.

 

There has been some confusion over the bauxite levy since the 2017/2018 budget process started last month.

Finance Minister Audley Shaw had said no inflows were expected from the levy but that was contradicted by Mining Minister Mike Henry.

Shaw later disclosed that the government expects earnings from the levy. 

The Government intends to give up the bauxite levy for a profit-sharing arrangement with the bauxite companies.