OBMI shares sale: Guyana also seeks amicable solution
Guyana Chronicle
February 6, 2007
THE government yesterday said it also hopes for an “amicable and honourable solution” to its concerns raised about the sale by Canadian mining company IAMGOLD of its majority shares in Omai Bauxite Mining Inc (OBMI) to Bosai Minerals Group Company Limited of China (BOSAI).
The Office of the Prime Minister, however, said it found “some representations erroneous” by IAMGOLD on the sale of its interests in OBMI and the electricity provider to the company and the town of Linden.
“The government also hopes for an amicable and honourable solution in the interest of OBMI and Guyana,” the Office of the Prime Minister stated.
IAMGOLD, which acquired OBMI from the other Canadian mining company, Cambior, has said it will sell its shares in OBMI to Bosai for US$46M.
President Bharrat Jagdeo last month indicated that his government was concerned that the deal moved forward without it being fully aware of all the details.
However, he said the government is seeking further information and will state its position on the issue by February 12.
At a press conference at the Office of the President, Mr. Jagdeo said the government wants assurances from Bosai that it will not scale down operations here or if the market changes, shut down operations to the advantage of its company in China.
“We want to make sure that whoever gets our ore body is not moving just to produce bauxite, but to go to an aluminium plant or an aluminium refinery. That is our interest in utilising our ore body - to stimulate some agreement with one or the other party to get processing done here,” he said.
Mr. Jagdeo said the government’s interest is in safeguarding the thousands of jobs that depend on the bauxite industry.
In a press release last week, OBMI said that on December 22nd, 2006, IAMGOLD Corporation, as corporate successor to Cambior Inc., provided formal notification to the Government of Guyana that it had entered into a conditional share purchase agreement with Bosai on December 18, through which Bosai will acquire IAMGOLD’s 70% interest and shares of OBMI.
“This agreement is subject to the conditions of the Shareholders Agreement between Cambior Inc., National Industrial and Commercial Investments Limited (NICIL) and OBMI”, it said.
The government has, however, contended that NICIL has not been provided with sufficient information to allow it to arrive at a considered decision.
IAMGOLD said it is seeking an “amicable and honourable solution to the present situation, which will inure to the good of Guyana”, a press release said.