OWNERSHIP OF Alcan Jamaica's assets in Jamaica are to be turned over to the Swiss metal trading firm, Glencore, in June, Minister of Mining and Energy, Robert Pickersgill has announced.
Mr. Pickersgill told the House of Representatives on Tuesday, that based on the assets purchasing agreement between the two companies, it is expected that the transaction will close by early June and ownership will be transferred shortly after.
He said that the Government has reached agreement in principle with both Alcan and Glencore on all matters. As a result the Government will indicate a decision not to exercise its right of first refusal, but instead approve the transaction between Alcan and Glencore for the purchase of 93 per cent interest of the co-tenancy assets.
Accordingly, the Government will enter into a transaction consent agreement with Alcan, under which Alcan will surrender mining rights and transfer its interest in the property and the business to Glencore.
The Government will enter into two agreements with Glencore an established agreement and a joint venture agreement.
Under the established agreement, Glencore will be granted mining rights, declared a recognised alumina producer and an associated producer, as well as an approved farmer and granted access to certain land holdings. It will also include arrangements for payment of the bauxite levy, royalty and income tax.
The joint venture agreement will establish operating arrangements for the partnership, involving the 93 per cent which will be owned by Glencore and the 7 per cent which will continue to be owned by the Government's mining company, Jamaica Bauxite Mining.
Mr. Pickersgill announced on May 16 that Alcan and Glencore had signified to the Government that they had arrived at an agreement for the sale of the assets and had provided him with detailed proposals. However, he said that final meetings were to be held between the Government and the two companies, separately, to conclude details of several issues.
These issues included Government's 7 per cent shareholding in the Kirkvine and Ewarton assets through JBML as well as land holdings, employee benefits plan, environmental matters, especially as they relate to old mud lakes, technology licences and the exercise of Government's right of first refusal.
