Linmine will have to shed 1200 jobs before any Cambior takeover
Stabroek News
August 12, 2002
The Linden Mining Enterprise (Linmine) will have to shed some 1200 jobs before a proposed takeover by the Canada-based firm Cambior.
Prime Minister, Samuel Hinds and a team of officials, including Commissioner of the Guyana Geology and Mines Commission (GGMC) Robeson Benn and Head of the Privatisation Unit, Winston Brassington met with Linmine’s senior and junior managers and representative body of workers and their unions last week at Watooka Club. GINA stated that because of the impending takeover of the ailing mining entity by Cambior, the parent company of Omai Gold Mines Limited, only some of the managers including senior ones would be eligible for the voluntary redundancy package. Linmine has to shed almost 1200 of its workforce before the proposed takeover with just an operational body in place to keep it going in good condition until the decision is made.
According to GINA, the closest date for Linmine absorption by Cambior is November this year with an ultimate time frame of May 2003. Pre-feasibility, feasibility and financing and marketing studies are being conducted by the Canadian company which is to acquire 70 percent of the mining entity. Hinds said that he received a copy of its first overview about four months ago. He added that more of the company’s officials are at Linmine “doing due diligence to have a more detailed study done which would be the basis on which its board would make a decision to go or don’t go.” The decision, the release further said will not be made known to government until April of next year.
When questioned on whether government has a contingency plan in the event Cambior decides against the takeover, Hinds said that this would have to be reviewed as the mining industry needs a major financial injection. The Prime Minister’s meeting with the Linmine workers and management was to brief them on the fate of their colleagues at the Berbice Mining Enterprise (Bermine) and to give an update on their own impending takeover.
Benn said that the bauxite industry has reached a state where government can no longer carry the cost and as such it cannot “waffle” on the decision.
Workers were promised all of their benefits and wages up to whenever they want to leave before the date of the takeover. Hinds also urged the workers to keep looking for new economic ventures for investment in the area and he promised that government would do whatever possible to assist, the release added. The meeting was chaired by acting Chief Executive Officer (CEO) of Linmine, Bartley Holder.