The mining and transport minister of Jamaica, Robert Montague stated that the Government finalised an agreement with Concord Resources Holding Limited for the reinstatement of the bauxite production levy on the export of aluminium ore.
On 29th September 2021, Montague said to the House of Representatives: “The reinstatement of the levy is one of several agreements coming out of negotiations which started in August with Concord, its new joint partner in New Day Aluminum (Jamaica) Limited.”
The former minority shareholder in New Day Aluminum, Concord Resources Holdings Limited acquired majority shares in the American company earlier in 2021, succeeding DADA Holdings Limited as the new overseas partner of the Jamaican Government in Noranda Jamaica Bauxite, which ships the ore to New Day Aluminium's alumina refinery in Gramercy, Louisiana, in the United States.
Concord Holding now owns a 49% stake in Noranda Jamaica's mining operations, with the Jamaican Government retaining its position as the majority shareholder with 51%. The new entity is known as Noranda Jamaica Bauxite Partners II and the Government majority stake is being controlled by Jamaica Bauxite Mining (JBM) Limited.
The Minister further added: “Arising from the first round of negotiations with Concord, which began on August 11, two main points have already been agreed on – the Government will reinstate the bauxite production levy (BPL) and the asset usage fee debt of $3.4 million, which was owed to JBM, will be paid in full.”
“It should be noted that both parties are against the continuation of the profit-sharing regime which had replaced the BPL payments. Concord paid half of the outstanding amount of the asset usage fee debt, and the remaining portion is to be paid by the end of October.”
“These funds would have been paid earlier had Hurricane Ida not impacted the company's operations in Louisiana on August 29,” Montague informed the House.
source https://www.alcircle.com/news/jamaica-govt-finalizes-agreement-with-noranda-for-reinstatement-of-bauxite-levy-70503
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