Bauxite waiver extended

CABINET APPROVED an amendment to the agreement between the Government and Noranda Bauxite Ltd, formerly St Ann Bauxite Limited, which holds the assets of the Discovery Bay operations.

Information Minister Daryl Vaz, who made the disclosure at a post-Cabinet press briefing this week, said the ministers of finance and the public service and energy and mining would sign on behalf of the Government.

The new agreement, which will be in force until 2014, addresses the temporary waiver of the bauxite production levy inherited by Noranda when it took over from St Ann Bauxite. The waiver, which ran from 2004-2009, was introduced as previous owners, Kaiser, had filed bankruptcy following an explosion at its Gramercy alumina refinery in the United States.

The waiver allowed Kaiser to continue production in Jamaica despite its financial difficulties.