21 DECEMBER 2015www.jamaicaobserver.com
Jamaican govt wins bauxite levy victory over Noranda
Edited by : AL CIRCLE
2 min read
Minister of Science, Technology, Energy and Mining (MSTEM) Phillip Paulwell said today that the Jamaican government has secured a victory in a dispute with Noranda Bauxite Limited (NBL) a subsidiary of Noranda Aluminium Holding Corporation which operates in the island.
Arbitrators decided that NBL's contention to have a reduction of the bauxite levy charged on its operations could not stand.
The London-based arbitration panel, which examined the Establishment Agreement between the Government of Jamaica (GoJ) and NBL, said that the contract terms for 2015 and beyond were not fixed, but open to negotiation.
"I am very happy. We won on all the three points we put forward. We do not want to pressure the companies, but notwithstanding the difficulties of the industry, they need to realise that the Jamaican people need something more,” Paulwell told OBSERVER ONLINE.
John Parker, VP of Communication and Investor Relations at Noranda Aluminium Holding Corporation said today in response to the decision, "We are still evaluating the specifics of the tribunal's decision to determine its impact to our bauxite mining operations."
The dispute between the bauxite company and the government surrounds the tonnage on which production levies were based and also the means of making payment when such levies fall due.
A levy on bauxite mined in Jamaica was first introduced in 1974. However, since the economic recession which started in December 2008, the government made concessions which gave mining companies a break from payment in full. The quarrel between the GOJ and NBL erupted over the government's decision to revert to the old arrangement.
Arbitrators decided that NBL's contention to have a reduction of the bauxite levy charged on its operations could not stand.
The London-based arbitration panel, which examined the Establishment Agreement between the Government of Jamaica (GoJ) and NBL, said that the contract terms for 2015 and beyond were not fixed, but open to negotiation.
"I am very happy. We won on all the three points we put forward. We do not want to pressure the companies, but notwithstanding the difficulties of the industry, they need to realise that the Jamaican people need something more,” Paulwell told OBSERVER ONLINE.
John Parker, VP of Communication and Investor Relations at Noranda Aluminium Holding Corporation said today in response to the decision, "We are still evaluating the specifics of the tribunal's decision to determine its impact to our bauxite mining operations."
The dispute between the bauxite company and the government surrounds the tonnage on which production levies were based and also the means of making payment when such levies fall due.
A levy on bauxite mined in Jamaica was first introduced in 1974. However, since the economic recession which started in December 2008, the government made concessions which gave mining companies a break from payment in full. The quarrel between the GOJ and NBL erupted over the government's decision to revert to the old arrangement.
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