Reprinted from Caribbean Net News
caribbeannetnews.com

Government receives commitment for sustained bauxite operations in Guyana
02-14-2007

GEORGETOWN, Guyana (GINA): Following extensive negotiations by Government and existing stakeholders in the Linden bauxite operations, an agreement has been reached facilitating the transfer of OMAI’s assets from IAMGOLD of Canada to BOSAI, a Chinese bauxite firm.

The accord follows an expression of concern by Government, relative to the re-sale of OMAI’s assets by IAMGOLD, which was perceived as a potential threat to the continuity of the local bauxite sector, more specifically in Linden.

A prominent demand by Government was a commitment by BOSAI to continue operations at Linden, because of the critical role of bauxite in the economic sustenance of the community.

National Industrial and Commercial Investments Limited (NICIL), which negotiated on behalf of government’s 30 percent share-holding, on Monday received assurance from BOSAI that the operations will be expanded and the range of products will be increased.

The agreement gives NICIL the right to require BOSAI to sell its interest in OMAI, in the event that market forces force the company to effect reductions in its staff complement by 40 percent or more.

The provision states that this will be done through an international tender not exceeding 12 months.

NICIL will have the ‘right to first refusal’ under the same purchase terms and conditions as the other purchaser, and this is to be declared within one year.

BOSAI has agreed to ensure the sustained operation of the company during the 12-month duration.

The agreement further makes provision for the communication of relevant information by BOSAI to OBMI and NICIL relative to sales and marketing.

This initiative was taken to ensure the protection of production and sale of bauxite by the Linden operations.

BOSAI has agreed that the acquisition of IAMGOLD’s shares in OBMI will be for the purpose of OMAI’s continued operation and not to curtail operations or remove OMAI as a competitor.

The Share Purchase Agreement between IAMGOLD and BOSAI is expected to be finalised by the end of March.

BOSAI will succeed IAMGOLD as the 70 percent shareholder in OMAI Bauxite and full owner of OMAI Services Incorporated (OSI) which currently supplies electricity to Mackenzie, Linden.

The Guyana government said it is committed to continued policy reform and negotiations, which will ensure employment and productivity in the bauxite sector.