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Government to get loan to fund Clarendon Alumina Partners operations
Edited by : AL CIRCLE
2 min read
The government is to get a loan from GLENCORE to help fund the operations of Clarendon Alumina Partners Limited.
The Administration recently indicated that it has put off plans to divest CAP but stressed that the loss-making entity would cease to be a burden on the public purse.
Finance Minister Dr Peter Phillips said GLENCORE is to give the government a line of credit to help with production at CAP.
However, Phillips did not say the amount which will be provided.
However, he said GLENCORE would retain payments to the government for the sale of alumina to service the loan.
The government had to seek out a loan after negotiations between GLENCORE and the majority partner in the JAMALCO joint venture, ALCOA, were unsuccessful.
The finance minister told the parliament that AlCOA declined a proposal for a long term lease of the facilities from CAP or to immediate purchase the asset.
Phillips said GLENCORE had proposed to buy the government’s shares in CAP now with an option to purchase between January 2015 and December 2020.
He said the offer to purchase now was turned down because the sale price was too low.
The finance minister said it was decided that production at CAP would continue until GLENCORE exercised its option to purchase.
The Administration recently indicated that it has put off plans to divest CAP but stressed that the loss-making entity would cease to be a burden on the public purse.
Finance Minister Dr Peter Phillips said GLENCORE is to give the government a line of credit to help with production at CAP.
However, Phillips did not say the amount which will be provided.
However, he said GLENCORE would retain payments to the government for the sale of alumina to service the loan.
The government had to seek out a loan after negotiations between GLENCORE and the majority partner in the JAMALCO joint venture, ALCOA, were unsuccessful.
The finance minister told the parliament that AlCOA declined a proposal for a long term lease of the facilities from CAP or to immediate purchase the asset.
Phillips said GLENCORE had proposed to buy the government’s shares in CAP now with an option to purchase between January 2015 and December 2020.
He said the offer to purchase now was turned down because the sale price was too low.
The finance minister said it was decided that production at CAP would continue until GLENCORE exercised its option to purchase.
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