Government holds talks with Glencore and Alcan

THE GOVERNMENT of Jamaica is holding separate meetings with Glencore and Alcan to conclude details of mining leases, approved bauxite producer status, taxation, land issues and joint venture arrangements.

Glencore is the major Swiss-based commodities trader and diversified minerals resource group that bought Alcan Jamaica Limited.

Mining and Energy Minis-ter, Bobby Pickersgill, told the House of Representatives that Glencore recorded revenues of over US$35 billion in 1998.

In addition, he said, Glencore was the majority owner of the second largest aluminum smelting operation in the United States and owned or operated aluminum smelters in other parts of the globe.

Turning to the prospects of the local bauxite/alumina sector, Mr. Pickersgill said operations at Kaiser Jamaica Bauxite Company have been geared for much higher production levels now that the rebuilding of the Gramercy refinery was almost complete.

"This House may recall that as a result of the closure of that refinery over the past year and a half, between July 1999 and December 2000, Jamaica lost approximately 3.1 million tonnes of bauxite exports, valued at more than US$62 million. The loss of direct revenue to the Government in terms of the levy, taxes and royalties was in excess of US$22 million or more than $1 billion," he said.

Mr. Pickersgill said the recovery in crude bauxite production and exports which began late last year has resulted in shipments for the first quarter of this year increasing by 62 per cent above the corresponding first quarter of 2000, a difference of more than 350,000 tonnes of crude bauxite.

"We anticipate that this year's total production will record the highest level since 1974, thanks mainly to new capacity output at Kaiser and the continued incremental increases in alumina production especially at JAMALCO," he added.

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