Stabroek News
June 23, 2001

A committee has been established to initiate negotiations with two groups on their proposals for the Berbice Mining Enterprise (Bermine).

The decision was taken when President Bharrat Jagdeo and PNC REFORM leader, Desmond Hoyte met with the Bauxite Resuscitation Committee for a second time yesterday to further consider the proposals submitted by Alcoa and the Bermine Employees Group/CTMM/strategic investor.

A release issued after the meeting said that the leaders had "agreed to establish a Committee comprised of the two co-chairmen of the Bauxite Resuscitation Committee - Robeson Benn and Clive Thomas, along with two other members to be named by the two Co-Chairmen."

It said that the "committee was instructed to proceed with despatch to negotiate in respect of both proposals before the Bauxite Resuscitation Committee, namely: the Alcoa Concept Paper and the Bermine Employees Group/CTMM/strategic investor.

The bauxite committee had as part of its mandate an evaluation of the Alcoa proposal, for which the government had expressed an interest and any other viable, practical option once it did not burden the Treasury.

The Alcoa proposal provides for the immediate closure of the Bermine operations at Everton, resulting in the loss of 270 jobs and the merger of the Bermine operations at Kwakwani with the Alcoa-Government of Guyana venture at Aroaima with assurances of a sufficient reserve to guarantee a project life of 15 years.

It would also capitalise the US$57 million debt owed by Aroaima, pay royalties and taxes and provides for Alcoa to continue its management of the restructured company.

The proposal by the employees group would see CTMM providing working capital to rehabilitate the kiln at Everton to allow the production of abrasive grade bauxite - up to 70,000 tonnes a year - and give it the right to market and sell all of the company's products. It would also provide the technical/managerial skills required to beef up the operations at Everton.

The proposal requires the government to turn over its shares to the employees and for the new company to raise its own capital. It will pay royalty, harbour dues and the relevant taxes on its operations.

At a press conference yesterday, President Jagdeo praised what he called the more rational approach to the consideration of the Alcoa proposal to which there was initially outright opposition even from members of the committee.