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Jamaican Government reviews divestment of Clarendon Alumina Production
Edited by : AL CIRCLE
1 min read
In closing the Budget Debate, Jamaican Finance Minister Peter Phillips sought to reconcile the apparent conflict between his pronouncement and that of Minister Paulwell made earlier in the debate regarding the divestment of Clarendon Alumina Production (CAP).
He approved of what Dr. Phillips said that Glencore’s offer for immediate purchase was deemed unacceptable by the Government and it has opted instead for Glencore's alternative offer of an option to purchase at any time between January 2015 and December 2020.
The minister also announced another forward-sale agreement with Glencore in exchange for Glencore’s funding of CAP’s obligations going forward.
Details of this arrangement, which could possibly last for the next seven and half years, especially the price at which the alumina is to be delivered, will need to be divulged before the government can determine whether the proceeds of the sale will be sufficient to cover CAP’s obligations in regard to Jamalco’s recurrent and capital costs so that they don’t become a financial burden on the Government.
He approved of what Dr. Phillips said that Glencore’s offer for immediate purchase was deemed unacceptable by the Government and it has opted instead for Glencore's alternative offer of an option to purchase at any time between January 2015 and December 2020.
The minister also announced another forward-sale agreement with Glencore in exchange for Glencore’s funding of CAP’s obligations going forward.
Details of this arrangement, which could possibly last for the next seven and half years, especially the price at which the alumina is to be delivered, will need to be divulged before the government can determine whether the proceeds of the sale will be sufficient to cover CAP’s obligations in regard to Jamalco’s recurrent and capital costs so that they don’t become a financial burden on the Government.
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