Omai bauxite sale not `done deal’
-- PM
By Neil Marks
Guyana Chronicle
December 22, 2006
PRIME Minister Samuel Hinds, who has responsibility for the mining sector, yesterday said the reported selling by Iamgold of its 70% share of Omai Bauxite Mining Inc. (OBMI) is “not a done deal.”
Canadian miner Iamgold Corp. said Tuesday it will sell the bauxite assets here that it inherited from its acquisition of Cambior Inc. to China’s Bosai Minerals Group for about US$46M.
The effective date of the transaction, which includes US$18M in debt, will be Dec. 31, Iamgold said.
The company said it will receive about US$28M in cash after privately held Bosai Minerals completes a confirmatory review of the aluminum ore assets.
“The transaction is consistent with our strategy to focus on our core assets,” said Iamgold chief executive Joseph Conway.
Iamgold recently brought fellow gold producer Cambior in an all-stock deal.
During the final sitting of the National Assembly for this year yesterday, Prime Minister Hinds said the government, as the minority shareholder with 30% of the shares in OBMI, has not been informed officially about the sale by Iamgold.
He said the government considers what has been reported as being just a proposal.
According to him, the investment agreement stipulates that the government, as the minority shareholder, has to be informed whenever such deals are being negotiated, and so far this has not been done.
Earlier, Leader of the Opposition and People’s National Congress Reform (PNCR), Mr. Robert Corbin, sought to have the issue debated as a matter of urgent public importance by moving a motion.
However, Speaker of the National Assembly, Mr. Ralph Ramkarran, disallowed the motion, indicating that the matter was brought before the House primarily based on a media report but the Standing Orders governing the moving of such motions require more substantive evidence.
Nevertheless, the Speaker indicated to Corbin that in accordance with the approved parliamentary procedures, the matter could come up for discussion at subsequent sittings of the National Assembly.
The Opposition Leader then gave notice to the Speaker requesting that the matter be slated for discussion at the next sitting of the House.
The Prime Minister explained that the government, as the minority shareholder in the company, has within 30 to 90 days to respond after being officially informed of any proposed sale agreement entered into by the major shareholder.
He said that since it has not been informed officially, the government cannot pronounce on the matter.