-production target slashed
Following weeks of a production shutdown, Chinese-owned BOSAI Minerals Group Guyana Inc. (BMGG) has said at least one of the kilns will resume production next week, and the company also assured that it will not be closing despite weak demand.
The company confirmed too that its production target of 280,000 tonnes for 2009 has been slashed by 80,000 tonnes.
According to BMGG General Manager Steven Ma, the kilns were shut down because the company was “waiting on ships to produce again.”
In clarifying this statement, the general manager explained that it was not a case of ships not being available, but the market was “very slow.” He said that a ship was expected next week to transport bauxite overseas.
Ma declined to say where the planned shipment of bauxite for next week will be going, but he did note that the company exports to Europe, Asia and North America.
He said that at least one of the two kilns which were shut down will begin working next week and will continue to work. Last week Ma returned to Guyana from an overseas visit.
Although one of the kilns is expected to begin working again, Ma said that demand is not up to previous levels. The company yesterday was scheduled to meet with workers to give an update on the market and to assure them that the company is not shutting down, despite rumours.
He told this newspaper that the company will not be putting proposals of any “cutbacks” to workers, but there will be negotiations with the employees’ union, NAACIE (National Association of Agricultural, Commercial and Industrial Employees).
The company, according to Ma, has almost 550 employees and these are full-time workers. Over 100 workers were laid off this year by BMGG, the largest private sector employer in Linden.
The company’s production target for this year was 280,000 tonnes, but with the weak demand and production stoppages, that is now expected to fall by some 30%. Ma confirmed that their production target will now be 200,000.
Refractory
grade bauxite
The company exports mostly refractory grade bauxite for use in the steel industry, and does not export metallurgical-grade bauxite. The general manager said that since BMGG began operations it has not exported metallurgical-grade bauxite.
20-member
delegation
Meanwhile Ma confirmed that a high-level 20-member delegation from China, including officials from the BMGG parent company, BOSAI Minerals, will visit Guyana this month. He could not say what the plans of the team would be here, but he stated that a visit to the operation in Linden was expected.
It is not clear if the BOSAI delegation will update the government on its plans for the US$1B aluminum refinery. It was to be preceded by a feasibility study. An aluminum refinery requires alumina, and its production was included in the US$1B investment. This newspaper understands that part of the planned investment was for one million tonnes of alumina production and then 500,000 tonnes of aluminum production.
The delegation is expected to include the mayor of Chongqing, located in south west China, which is where the BMGG parent company’s head office is located.
In April 2007, the Chinese-owned BOSAI began operating after striking a US$46M deal with previous owners of Omai Bauxite Inc., Canada-based Iamgold, for its 70% stake. The government owns 30% of the company while the Chinese owns 70%.
