Bauxite Production Levy Reinstated On Noranda Jamaica

The Government of Jamaica has reinstated the Bauxite Production Levy on Noranda Jamaica Bauxite Partners II coming out of an agreement with Concord Resources Limited.

This follows the acquisition of New Day Aluminium (Jamaica) Limited’s 49 per cent of shares in the company by Concord Resources Limited.

“It should be noted that both parties are against the continuation of the profit share regime,” said Minister of Transport and Mining, Hon. Robert Montague, during the sitting of the House of Representatives on September 29.

On September 6, 2018, the Government of Jamaica and New Day Aluminium (Jamaica) Limited signed an Establishment Agreement, which prevented the closure of the bauxite mining operations headquartered at Discovery Bay, St. Ann.

This saved the jobs of more than 500 workers and contractors and resulted in the creation of Noranda Jamaica Bauxite Partners II, as a joint venture between the Government of Jamaica (51 per cent) and New Day Aluminium (Jamaica) Limited (49 per cent).

The profit-share agreement between the Government of Jamaica and New Day, which was largely in lieu of the Bauxite Production Levy, extended the agreement to include the operations of New Day’s alumina refinery at Gramercy, Louisiana, United States (US).

The Government’s 51 per cent interest in Noranda Jamaica Bauxite Partners II is managed by the GOJ-owned Jamaica Bauxite Mining Limited (JBM).

Mr. Montague informed that in a letter dated July 14, 2021, New Day Aluminium (Jamaica) Limited informed the Jamaica Bauxite Mining Limited and other Government of Jamaica members of the Executive Committee, that effective July 1, 2021, Concord Resources Limited had acquired the majority ownership interest in New Day Aluminium from other shareholders in the DADA Holdings Group.

“Pursuant to this transaction, Concord Resources Limited had acquired the majority interest in New Day Aluminium (Jamaica) Limited,” he explained.

Concord Resources Limited is a metals trading firm, which focuses on the distribution, supply chain, and risk management of non-ferrous metals and raw materials. Headquartered in London, the company operates offices in New York and Hong Kong and serves customers worldwide.

Mr. Montague also informed that the Asset Usage Fee debt of US$3.4 million owed to JBM by New Day will be paid in full by Concord.

“Concord has already paid half this amount on September 10, 2021. The remaining portion is to be paid by the end of October 2021. These funds would have been paid earlier had Hurricane Ida not impacted the company’s operations in Louisiana, on Sunday, August 29, 2021,” he said.

He noted that there are various other matters that have been discussed and agreed upon.

“These negotiations are to resume on October 6, 2021, to allow for the fashioning of an agreement that effectively treats with Concord’s investment in our bauxite industry,” Mr. Montague said.