Minister of Transport and Mining defends bauxite mining deal with New Day Aluminium

Jamaica’s Minister of Transport and Mining Hon. Robert Montague defended the bauxite mining deal that Jamaican Government signed with New Day Aluminium at the parliament.

He said that when New Day/ DaDa Holdings, LLC (New Day) acquired 49% stake in the Noranda Jamaica Bauxite Partnership in Jamaica two years back, the then government entered into an agreement with New Day to protect the interest of the Government and people of Jamaica after considering all options for the parties involved. This saved over 300 jobs and all dues were paid to workers. This prevented any disruption of Noranda Bauxite operations.

He said that in October 2016, a Letter of Intent was signed between the GOJ and New Day Holdings but signing of other following documents were delayed and extended beyond November 30, 2016 in order to facilitate the equitable treatment of employees. Several operational and environmental factors delayed the process.

Finally, he said, on September 6, 2018, the GOJ and New Day signed the Novation Agreement which, outlined the parameters, commitments and business arrangements between the GOJ and New Day as partners in the bauxite operation in St. Ann. The agreement assures protection of natural environment and the people.

He also pointed out that the agreement also covers the refinery operations at Gramercy in Louisiana. The Government of Jamaica, according to him, entered into a profit sharing arrangement where both partners benefit from any ‘financial recovery’ from the bauxite operations.

He expressed his belief that this new arrangement will earn the country more in US Dollars compared to the traditional levy system. At signing, New Day paid US$7 million (approximately J$959 Million) to the government. He said that the Government will insist quick settlement of all the payments. He added that since the bauxite belongs to the Jamaican People and not the Government, the levy on bauxite must be paid if the company does not make profits.

Although, not a part of the Novation agreement, the Government Team requested that the outstanding land titling for persons who have been resettled be dealt with. He concluded by saying that the government has taken this step to secure the money owed by Noranda to Jamaican people, to protect the jobs of the employees and to ensure the continuation of the bauxite operation in St. Ann.