…Min. Trotman says gov’t will search for new partner

NATURAL Resources Minister, Raphael Trotman said the government has not been notified that the Bauxite Company of Guyana Incorporated (BCGI) – a subsidiary of Russian Aluminum Inc. (RUSAL), would be shutting down its operations here from October 1, 2018 in light of U.S imposed sanctions.

According to reliable sources, on Tuesday, RUSAL BCGI informed its managers at its Aroaima, Region 10 worksite, that there will be no mining or shipping of bauxite from October 1, 2018.

U.S customers are mandated to wind down business with RUSAL by October 23, 2018 as a result of sanctions imposed in April, 2018 in response to Moscow’s alleged interference in the 2016 U.S. election.

Though not informed about this recent development, Minister Trotman told the Guyana Chronicle that the A Partnership for National Unity + Alliance for Change (APNU+AFC) government will have to search for a new partner to mine bauxite in the Upper Berbice River, Region 10 area.

“The Government of Guyana would wish to have a normalisation of operations ASAP, and so if RUSAL is unable to continue, then a new partner will have to be found to develop the resource,” the Natural Resources Minister told this newspaper.

The Government of Guyana has 10 per cent share in BCGI.

Earlier in the week, Minister Trotman had indicated that a report on the situation with special focus on workers’ welfare would be submitted to Cabinet soon. Days after the sanctions were imposed by U.S Government in April, the Guyana Government, in response, activated a task force to deal with the future of workers attached to RUSAL BCGI and Oldendorff Carriers – the company contracted to ship bauxite from Aroaima in the Upper Berbice River, Region 10 to the mouth of the Berbice River.

That task force, which was headed by Minister within the Ministry of Natural Resources, Simona Broomes, reportedly submitted its Terms of Reference and an Interim Report to Minister Trotman approximately five weeks ago. In that Interim Report, which was seen by the Guyana Chronicle, the task force recommended that that the more than 700 affected workers be given a similar payment package that was applied by LINMINE, BERMINE and OMAI in the past.

“Based on the decision of the companies to terminate their operation in Guyana, and since they have benefitted from concession given to the mining sector they pay a similar package that was applied in the case of LINMINE in 1993 and onward, BERMINE in 2002 and onward, and OMAI Gold Mines in 2004, which means that the minimum pay for each year of service shall be equivalent to 6 six weeks for each year of service to the maximum of two years pay in benefits,” the task force recommended in its Interim Report.

According to the report, workers’ representation by the Guyana Bauxite and General Workers Union (GB&GWU) and People’s United and General Workers Union (PU&GWU) at BCGI and Oldendorff Carriers, respectively, has been fraught with challenges. As such, a recommendation has been made for a Compulsory Arbitration in keeping with the Labour Act.

Up to press time on Thursday, the news of the company’s decision to significantly reduce its operations had not been officially filtered down to the staff. Oldendorff Carriers reportedly indicated to RUSAL BCGI that it will no longer be offering its services from September 30.

However, Oldendorff Carriers’ Spokesman, Alex Graham dispelled the claim, indicating that he shipping company will not cease its shipping operation at the end of September. He noted that the company’s position as stated in June, 2018 remains the same.

Back then, Oldendorff Carriers, in a statement, explained that as a result of the US Government’s Sanctions, which require that all companies doing business with those that have been sanctioned wind down operations by October 23, or they themselves will be sanctioned, it was compelled to put preparatory systems in place. “While there are international negotiations taking place in an attempt to get the US Government to withdraw the current sanctions, OLDENDORFF is compelled to make preparations for winding down should such efforts fail,” it said.

Since then, the company has been sensitising workers on the possibility that it will not be able to continue operations in Guyana.