(Jamaica Observer) Russia’s UC Rusal has linked its planned re-opening of the Kikvine alumina plant in Manchester to being allowed to purchase the Jamaica government’s 45 per cent stake in the Jamalco refinery in Naine, Clarendon, industry sources in London and Moscow have told the Financial Gleaner.
“At present, ostensibly the Jamaican Government is negotiating with the commodity traders, Glencore, for their acquisition of the equity Jamaica holds in Jamalco through its vehicle, Clarendon Alumina Production (CAP),” according to a UK source conversant with the talks.
“However, Glencore has a stake (around eight per cent) in Rusal and apparently there is an agreement between the two that would allow Rusal to take over Glencore’s offer,” the source added.
“Rusal has insisted on the acquisition of the shares as quid pro quo for restarting Kirkvine.”
Neither James Robertson, the mining minister nor Rusal’s country manager for Jamaica, Igor Dorofeev, were available for comment.
There are, however, suggestions in some circles that the government may be inclined to acquiesce for two reasons:
To get the hundreds of jobs and the economic rejuvenation of surrounding communities that would come with the re-opening of Kirkvine; and
Because of the pressure from the International Monetary Fund (IMF) to unload its stake in the loss-making CAP so as to improve the country’s ability to meet fiscal targets.
