In economic slowdown…
THE Rusal owned Bauxite Company of Guyana Inc. (BCGI) has reported positive results from its ‘cost efficient leader’ programme to counter the global economic crisis.

A press release said the undertaking included a package of measures to reduce the cash cost and strengthen the company’s position as the most effective aluminum producer in the economic slowdown.

“In the first quarter of 2009, the reduction in actual cash cost of one tonne of bauxite at BCGI amounted to 33.7 per cent, as compared with the fourth quarter of 2008 and 20.5 per cent versus the average cash cost in 2008,” the release stated.

It disclosed that, in the first quarter of 2009, the economic effect from the package amounted to US$554M and predicted that, in 2009, total cost reduction at all production sites should be US$1.1 billion.

BCGI said significant results in cash cost reduction were achieved due to the actions developed by the production facility within the programme.

The company said measures taken were the optimisation of a mining plan, together with contractors’ services, equipment and fuel deliveries, reduction in the use of excess vehicles and an increase in bauxite mining with lower cash cost.

“The production facility has an objective to develop and take additional actions which will allow the cash cost to be reduced by 9.1 per cent in the second quarter of 2009. To be able to do this, BCGI plans to pay special attention to optimisation of fuel consumption and electricity generation, reduction in bauxite transportation costs and full shift to direct supplies of diesel fuel and fuel oil,” the release said.

It reported that, in the first quarter of 2009, bauxite mining was reduced by 34.2 per cent, compared to first quarter 2008 and amounted to a total of three million tonnes.

“Bauxite mining is planned to be reduced by 5.6 million tonnes by year end.

“Reduction in the cash cost, optimisation of the production process at unprofitable production facilities and agreements reached with our main groups of lenders ensure the stability of our business, effective management and the ability to respond quickly to the variable economic situation,” Alumina Division Director Pavel Ovchinnikov said.

BCGI said now that cash cost optimisation and expenses reduction are the key objectives for every employee, the support of trade unions will allow the company to live through these hard times with minimum losses