(Jamaica Gleaner) Former Finance Minister Dr Omar Davies has again bemoaned the absence of information on the concession being sought by United Company (UC) RUSAL that operates Ewarton and Kirkvine alumina works in Jamaica.
Davies in his contribution to the 2011-2012 Budget Debate on Tuesday, said he was seeking clarification, against the background that the finance minister said he expected increased levy inflows for the financial year 2011-2012.
According to him, “despite writing to both ministers seeking this briefing, nothing has happened. Again I ask – what is the nature of the concessions being negotiated with UC RUSAL.”
According to Davies, when the announcement was made in Parliament, he questioned the prime minister, Bruce Golding, asking him to indicate the concessions being demanded by UC RUSAL.
“He responded by saying that he preferred not to discuss the matter in public, as this could jeopardise negotiations. Rather, he would authorise the ministers of finance and mining to brief me,” Davies said.
Early this year, UC Rusal said it would spend US$17.5 million (J$1.5b) to recommission its Windalco-Kirkvine Works plant, which will restart production July 1 after a two-year shutdown.
The Russian company also announced that it would spend US$9.5 million (J$817m) at the Manchester-based plant between January to December, during which time it will ramp up to just 42 per cent of capacity.
The Kirkvine Works plant was mothballed in April 2009 after world alumina prices tanked. UC Rusal, in a move to cut costs as its debts ballooned, cut production at several of its facilities worldwide.
Hundreds of workers lost their jobs in the meltdown.
