Guyana Chronicle
June 9, 2001

CHAIRMAN of the People's National Congress/Reform (PNC/R), Mr. Robert Corbin has charged that the government has been holding discussions on the future of the Aroaima Bauxite Company (ABC) and the Berbice Mining Enterprise (Bermine) outside the ambit of the Bauxite Resuscitation Committee.

At a news conference Thursday at the party's Congress Place headquarters in Sophia, Georgetown, he said this move constitutes a serious breach of good faith.

It also appeared to be calculated to undermine the ongoing negotiations between PNC/R and Opposition Leader, Mr. Desmond Hoyte and President Bharrat Jagdeo, he said.

He said the setting up of the Bauxite Resuscitation Committee had emerged from the negotiations between President Jagdeo and Hoyte which began in April.

Corbin said it had also been agreed that the joint committee would examine the various options for the resuscitation of the bauxite industry and that a report would be submitted within three months of the convening of the committee.

It was also understood that the government would make all information it has available to the committee and that all negotiations would be halted until the body's recommendations were submitted to President Jagdeo and Hoyte, he said.

"Even as the committee was being formed, the government was holding discussions with Alcoa, outside the ambit of the committee, with regards to the future of the Aroaima Bauxite Company (ABC) and Bermine", Corbin remarked.

The government is favourably considering proposals by the Alcoa company of the United States to take over Bermine and merge the operations with Aroima, saying it could help save the Berbice bauxite operations.

Corbin said the government had requested that the committee give priority consideration to the Alcoa proposal dated April 23 and that it submit its reports and recommendations to both leaders within a month.

"Accordingly, the committee has been working assiduously to meet the agreed deadline.

"However, the PNC/R is disturbed by the bad faith which inspired the public pronouncements and visits by the President and the Prime Minister to promote the acceptance of the Alcoa concept", he said.

He added that the government "seems bent" on giving the impression that the Alcoa proposal is a done deal and queried, "if this is so, what is the need for and the purpose of the Joint Committee?"

"The President and the Prime Minister must have recognised that no Guyanese who is concerned for the future of the bauxite industry and the communities which are dependent on the survival of the industry can accept the Alcoa concept which will result in the loss of 554 jobs from the bauxite operations at Everton and Kwakwani within two-three years", Corbin argued.

He added that ABC, in spite of the fact that it exported 16.4 million metric tonnes of dried bauxite valued at US$434.6M during the period 1997-2000, claimed it incurred a debt of US$57M to Reynolds.

"In the period 1991-2001, the company which exported 7.7 million metric tonnes of dried bauxite valued at US$195.4 million, showed losses for each year amounting to a total of US$25 million", he said.

According to Corbin, ABC, which is managed by Reynolds, has not yet provided details to satisfy the committee how the losses have arisen.

"An objective examination of the Alcoa concept document leaves no doubt that they are simply seeking to `package' ABC, which they won as a result of their takeover of Reynolds, for resale to an interested buyer", Corbin contended.

He said that based on "these facts the PNC/R will have a great difficulty in supporting the Alcoa proposals".

Mr. Hinds, addressing bauxite workers at Aroaima on Sunday, said the deal was not "done" and the two sides were still negotiating.

He said a precondition set by Alcoa for taking over Bermine to be merged with ABC, is for the Guyana Government to make funds available for the development of the Kwakwani community.

On a weekend visit to the Berbice bauxite mining operations to try to sell the proposed takeover of Bermine by Alcoa, he said the firm wants the government to make an investment of US$1.8M in the development of the community at Kwakwani.

This would cater for making it more habitable, and providing the basic amenities and facilities for the people, he explained.

But while the deal is not "done", and the two sides are still negotiating, the Prime Minister said though it is not yet known where that money would come from, provided that that kind of development takes place, there is hope that employment could be created for many of the persons who are likely to be on the breadline following the imminent merger of Aroaima and ABC.

Addressing workers at Aroaima on Sunday, about the future of the bauxite company, he said that with the merger of the two companies, ALCOA which was forced to sell out some of its alumina plants, no longer has need for as much bauxite as it did previously.

The Linden Mining Enterprise (Linmine) will therefore remain the only bauxite operations in which the government will be investing, he said.

The proposal by ALCOA for the government to address the matter of making money available for upgrading living conditions at Kwakwani has found favour with workers both at the Aroaima mining site and at Kwakwani.

Workers who have been enjoying superior working conditions and a healthy environment created for them at ABC appear to be averse to surviving under any other conditions.

Meanwhile, those at Kwakwani who suffer great hardships such as poor roads, lack of telephone and recreational facilities, improper garbage disposal and social amenities for their children, hope that gainful occupation can be created out of the new developmental works.

The residents of the two areas are, however, suggesting that in order to ensure the efficient utilisation of funds, and a new community of which they can be proud, the US$1.8M to be provided by the government should be turned over to ALCOA and an agreement entered for the social amenities and services to be provided for the people.

"Bearing in mind that they have the required technology and will know exactly what it is that they want to see the community develop into, we think it should be left for them to work that out," one resident suggested.

Corbin, touching Thursday on the establishment of a joint committee to examine the administration of the state-owned media and the Broadcast Legislation, said Prime Minister Hinds recently advanced certain proposals to television station owners for the payment of licence fees and regulating the content of programmes.

"This is an act of bad faith that cannot be accepted by the PNC/R. The party therefore calls upon all owners of television stations to ignore Mr. Hinds' ultimatum and await the recommendations of the Joint Committee", Corbin said.

He added that despite the main Opposition party's best efforts, all legislation has not yet been laid in the House and charged that the government attempted to secretly change the unanimous recommendation of the Parliamentary Select Committee, the Oversight Committee and the unanimous decision of the National Assembly itself relating to the procedure for appointing the Chancellor and the Chief Justice. (AMANDA WILSON)

TUC says bauxite workers want to bid for Bermine

By Shirley Thomas

THE Trades Union Congress (TUC) yesterday reported that bauxite workers want to bid for the Berbice Mining Enterprise (Bermine) which the American Alcoa firm is interested in taking over.

The government is considering the Alcoa proposal but has said it is willing to look at any immediate alternative workable proposal that would not require funds from the Treasury.

The TUC told a news conference the workers have come up with a strategic proposal in which they are now bidding for the Bermine operations.

It said a 21-point proposal was being sent to President Bharrat Jagdeo aimed at ensuring the three Berbice locations continue mining operations and employees' jobs are secured.

Under the proposal put to the government by Alcoa for the merger of Bermine and the Aroaima Bauxite Company (ABC) operations, there would no longer be need for the operations at Everton.

In addition, initially some 70-80 workers will immediately be put out of employment and an additional 200 from the combined ABC/Bermine Kwakwani operations will have to go within two years.

TUC General Secretary, Mr. Lincoln Lewis told reporters a comparative analysis of the proposal by Alcoa and that by the workers group coined the `New Bermine', showed that under Alcoa some 554 jobs will be lost, whereas jobs will be secured under the alternative plan.

He said the TUC was "optimistic" that the bid for ownership of Bermine by the workers would get the desired response from the government and that all things being equal, "We will put Kwakwani and Everton back as a growing concern."

Lewis said they had a "strategic partner" they were not willing to identify now and had come up with just the kind of proposal that would serve to move the industry forward.

It would also ensure foreign exchange returns to the Guyana treasury, the wellbeing of workers while still assuring ABC continues to get ore, he said.

The workers see their proposal for the 'New Bermine' as satisfying ideally the specifications outlined by Prime Minister Hinds as he addressed bauxite workers at New Amsterdam, Kwakwani and Aroaima last weekend, he said.

Prime Minister Hinds said then that the discussions between Alcoa and the government were not a "done deal".

Echoing the sentiments of President Jagdeo, the Prime Minister over the weekend told the workers: "Let me say that at this time we are still open to better proposals, proposals that are practical, feasible and readily implementable alternatives".

"When that comes along we would prefer that," he said.

Referring to the dialogue initiated by President Jagdeo with Opposition Leader, Mr. Desmond Hoyte, the Prime Minister reiterated: "No, we are not undermining it, but it (the Alcoa proposal) looks attractive...At this time, we are still open to any better proposal."

Lewis said the 'New Bermine' (NB) proposal is essentially saying: "Give Bermine to the workers under similar conditions as government had agreed to give it to Alcoa."

A comparative analysis of the two proposals he read at the news conference states:

** Under Alcoa there will be no new investment, whereas under the NB strategic investment is secured.

** Under Alcoa, Everton and Bermine will be closed, and overall 544 persons will be jobless, leaving an aggregate of about 3,000 persons in households to suffer, whereas the NB will secure workers' jobs.

** Under Alcoa the government would be required to disburse some $260M as severance pay - not so with the NB.

** Under Alcoa the government will be required to share a debt of $US57M - not so with NB.

** Under Alcoa, no harbour dues will be paid to the government which will have to continue subsidising the Transport and Harbours Department (T&HD), but with NB, the T&HD can earn its keep.

The proposal also projects, among other things, that the government will now see the operations paying royalties which it never attracted since the foreign company had been operating; there will be no recourse to the national treasury for losses; the location of the head office would be in Guyana and not abroad; senior management officials will all be Guyanese and not expatriate and product diversification will be assured.