Russian giant takes stake in Guyana bauxite
Guyana Chronicle
December 16, 2004
THE giant Russian aluminium company RUSAL is to sign a contract today to invest in the bauxite industry in Berbice, the Government Information Agency (GINA) announced yesterday.
The deal will be signed with Prime Minister Sam Hinds who has ministerial responsibility for the mining sector.
He told GINA that a new company will be formed in which RUSAL will have 90 per cent interest while the government through the Aroaima Mining Company (AMC) will hold 10 per cent.
The agency also announced that RUSAL will next month sign a management contract with the Guyana Government for AMC.
It said Mr. Hinds reported that by the end of next year, the company is expected to be merged into a new entity that will be formed by RUSAL and the Government of Guyana.
The company is in the process of being granted a licence for prospecting in known bauxite ore deposits in Linden/Ituni, GINA said.
RUSAL has also initiated a phased study of the possibility of constructing an alumina plant in Guyana. If all phases of the study are conducted, this would represent an investment of US$10M, GINA noted.
If the studies are favourable, RUSAL would invest US$1Bln in constructing the alumina plant here, officials said.
RUSAL is one of the world’s leading aluminium producers and is expanding operations.
Talks on investing here began with a visit by RUSAL officials in March 2003 followed closely by an official trip to Russia by President Bharrat Jagdeo who used the opportunity to further push for cooperation on the bauxite front.
A first Memorandum of Understanding (MOU) was signed by Prime Minister Hinds in February this year, after a visit by a four-member team headed by Yuri M. Lysov, the technical head of RUSAL.
GINA said this resulted in further exploration of the possibility of an investment by RUSAL.
A Guyanese team headed by Winston Brassington, visited Russia twice during the year to complete negotiations, the agency said.