Bauxite rebirth?
Editorial
The news was really good yesterday, for a change. Four firms have pre-qualified to bid for a 60% share in Linden Mining Enterprise (Linmine) namely Alcoa World Alumina, Billiton, Harbison Walker and Possehl as part of a consortium and RASC, a newly formed consortium which includes substantial Guyanese interests together with Peter Kiewit and CE Minerals of the USA. The same four have also indicated an interest in the Berbice Mining Enterprise, the deadline for expressions of interest for which has been extended to June 30 to facilitate other companies interested in pre-qualifying. The four who have pre-qualified for Linmine will now be requested to submit their formal proposals by July 3l. One company will then be chosen. The implications for both the economy in terms of revenue and the communities at Linden and Kwakwani are enormous. The chosen investor is expected to put up the capital and managerial skills needed to rehabilitate, modernise and expand Linmine's operations and to make it internationally competitive (the same will apply to Bermine). The state owned bauxite industry has been in the doldrums for more years than one cares to remember, markets were lost to China and production has fallen substantially. Some of this was due to soft bauxite markets but the prospects were still sufficiently attractive for Reynolds to open a new mine at Aroaima though under the terms of that deal government is still to earn any dividends. The substantial international interest in Linmine and Bermine suggests the expectation of a better future for bauxite. Is there any chance of the successful investor being interested in reviving alumina production here? The successful privatisation of Linmine and Bermine (l0% of the government's remaining 40% of the shares will be offered to the workers - borrowing facilities may be required to facilitate this -and the other 30% to the public, a good opportunity for Guyanese insurance companies, pension funds and other investors to get involved) together with the imminent privatisation of the Guyana Electricity Corporation could significantly brighten the otherwise gloomy economic outlook. There have also been offers to acquire a majority share in the Guyana Pharmaceutical Corporation which also provides opportunities for development. With the new GAC about to take to the skies and a deal with Beal for a rocket launching site a real possibility we can begin to achieve the kind of economic lift off that had begun in l989 under the Economic Recovery Programme instituted by then President Hoyte but had then stuttered after the change of government. Continued investment is essential to create the jobs and the revenue that Guyanese, including the public servants and the teachers, have waited for for so long. Government must now move decisively to close as many of these deals as possible in the near future. l999 could yet turn out to be a better year than anyone had dared to hope.
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