Appearing on a live programme Friday night on the plight of the bauxite industry, with host Mr. Martin Goolsarran of GTV 11 and fellow guests, Mr. Robeson Benn, Commissioner of the Guyana Geology and Mines, and Mr. Winston Brassington, Head of the Privatisation Unit, Mr. Hinds acknowledged that a way out has to be found.

The Government Information Agency (GINA) said the Prime Minister, who has responsibility for the mining sector, late Friday afternoon met a group of residents from Kwakwani and Linden on the situation.

Dismissing charges that the Government was being unsympathetic towards the Region 10 (Upper Demerara/Berbice) crisis situation, Mr. Hinds stressed that the administration was "concerned about the livelihood and future prospects of the people of Linden and Kwakwani."

A group of about 50 workers and residents from the region were on a vigil yesterday on Main Street, Georgetown, not far from the Prime Minister's official residence and said they planned to continue the peaceful protest under a tent until tomorrow.

A peaceful march is planned for Tuesday, organisers said.

President of the Guyana Bauxite and General Workers Union (GBGWU), Mr. Charles Sampson told the Chronicle the purpose of the vigil is to seek "definite answers" to problems raised with Mr. Hinds.

The union official stressed that the current protests are related to the issues affecting the community that they have raised with the Prime Minister and have no political or racial agenda.

"All we are seeking (are) definite answers to the problems we have raised with the Prime Minister", he said.

He also accused Government officials of being responsible for many of the problems affecting the bauxite community because they have failed to follow up on many of the promises made by President Bharrat Jagdeo during his visit to Region 10 last year.

Among problems raised with the Prime Minister were claims of a monopoly granted to the Viceroy Shipping Company for transshipment of bauxite produced by the Berbice Mining Enterprise (Bermine), low wages being received by workers, poor quality of water, alleged corruption involving contractors illegally removing laterite and bauxite capping, and the uncertainty hanging over workers on the future of the entity.

During a visit to Kwakwani Thursday, Mr. Hinds said most of the concerns residents raised centred on the current low income level and the possibility of a complete cut off of that meagre amount, GINA reported.

Broader alternatives will have to be sought in the region, he reiterated, adding, "this is a difficult time and everyone of us has to pull through it."

Benn said, "time is needed to sit together and work out the situation". He pointed out that there is just too much bauxite on the market globally and this has been affecting Guyana's position for the last 30 years, due to the market competition posed by other bauxite producers, including Brazil and Ghana.

Brassington said that those directly involved in the crisis should gather all the relevant facts, which are still not conveyed and every effort should be used to save the Bermine operation, examine the social costs and implications and seek alternative measures of development.

On the GTV programme, Mr. Hinds said the current problems facing the bauxite industry locally are not new, since signs of decline in the sector had already become evident during the mid 1970's.

"There has been a crisis (in the industry) going back to the mid-70's", he noted, reflecting on the events that led to the decline and recalling the temporary closure of the alumina plant in 1972 due to a power outage.

The Prime Minister noted that in 1983, a World Bank report revealed that the industry was operating at a loss, which would have required an almost immediate 30 per cent lowering of operational cost. The situation was further compounded with high costs for equipment and maintenance that retarded the cash flow to "re-capitalise" operations, which led to an imminent fall in production from 1975, he recounted.

He added that a US$30M monetary intervention by the European Union (EU) in 1985 accounted for a rise again in bauxite production, but the industry took a nosedive a few years later. However, it was again on the road to recovery through financial assistance in 1990, he said.

Meanwhile, the Government has been steadily supporting the upkeep of the bauxite industry, Mr. Hinds pointed out, adding that some US$400M was channeled towards this cause within the last few years.

In an effort to have the Linmine operations privatised to cut Treasury costs, the Government is actively engaged in negotiations with Cambior, the parent body of Omai Gold Mines, for the majority sale of Linmine. But according to the Prime Minister, negotiations have been tough.

"We were looking to sign (a memorandum of understanding) four weeks ago", he reported, but added, "it's a tough call".

Other companies had expressed initial interest in the sale of Linmine but their interest "did not come to the table", he said.

Brassington, who sees progress ahead, noted that "there are a number of conditions still to occur."

On the Kwakwani operations, he said that the Aroaima Bauxite Company (ABC) is running on a cash neutral basis in that it is in a position to cover its operational costs with the income accrued. However, ABC would not be in a position to sustain its operations for much longer in the foreseeable future, Brassington said.

Touching on the contentious issue of Viceroy's mooring rights at the Kwakwani operations, the Privatisation Unit head argued that the Bermine situation was not being put over in a "clear and understandable" manner.

He observed that Bermine has been and continues to utilise Viceroy's mooring facilities for the transshipment of its product, the most recent being two shipments to Russia.

"In fact, it has come to my attention that ABC has renewed its contract with Viceroy for 2002 at a reduced cost", Brassington added.

He explained further that the mooring dock was built by Viceroy at a cost of more than US$2.5M and therefore is privately owned and operated by that company which subsequently cannot allow a free mooring operation.

In the interim, Bermine has come up with a "realistic position" to keep its product on the market, he said, since metallurgical bauxite is now preferred over chemical bauxite, which the company now ships.

Sampson yesterday said the situation in the community is economically harsh with many of the some 700 workers receiving $2,000-$3,000 a week.

The quality of water being provided by the Guyana Water Authority (GUYWA) is also of great concern. According to Sampson, typhoid is a common disease in the community and one worker told the Chronicle that recently he suffered from two attacks of the disease.

In addition, water bills are as much as $5,000 per month.

Sampson also alleged that laterite and bauxite capping are being removed by contractors involved in road construction without paying the required royalties to the Government or responsible agency.