THE Government is expected to start serious discussions soon with Concord Resources Holdings Limited, which recently acquired 49 per cent private shareholding in Noranda Jamaica Bauxite, the St Ann-based exporter.

Concord, a minority partner in New Day Aluminum since 2018, recently acquired majority ownership of the US-based New Day Aluminum Holdings’ principal holdings, which include the Noranda Alumina Refinery in Gramercy, Louisiana, the NICHE chemical non-metallurgical alumina business and the Noranda Bauxite mine operations in St Ann, from shareholders in the DADA Holdings Group who previously owned the 49 per cent in private shares.

However, as the shares changed hands, the majority shareholder — the Jamaican Government — is raising concerns not only about its future with the new partner, Concord, but also how they will respond to the fact that there is an outstanding debt of some US$15 million owed from the previous partnership with the US-based DADA Holdings Group.

Minister of Transport and Mining Robert Montague told the House of Representatives, during the Sectoral Debate in May, that the Government’s partners in the deal would have to pay the outstanding balances.

“These funds belong to the people of Jamaica, and we intend to use all legal mans to collect it. We have agreements and we have laws and we intend, with the advice of the Attorney General’s Chambers, to use them. Never forget that we are a country of laws,” Montague warned.

He finally got an opportunity to meet with Concord’s Chief Executive Officer (CEO) Mark Hansen at his ministry in Kingston on Friday to share the country’s views on the future of the Noranda deal, the debt and their bauxite exporting partnership which is historically linked to the presence of the huge American outfit, Kaiser Aluminum in St Ann.

“The Government was very forceful in letting him know that we need the money they owe to us. They owe Jamaica Bauxite Mining Limited (which handles the Government’s 51 per cent investment) US$3 million for asset fees, and they owe about US$12 million in bauxite levy and profit sharing arrangements,” he said.

“We told them, in no uncertain terms, that we want our money, and he made commitment that he will get back to us before the end of August,” the minister added.

But, according to Montague, the issues don’t stop there. He says that the Government wants to renegotiate the current agreement between the two shareholders.

“The agreement allows for renegotiations after a certain period of time, and that time has now passed,” he noted.

He said that the Government negotiating team, which includes representatives of the ministries of transport and mining and finance and the public service, the Attorney General’s Department, the Tax Administration Department and the Jamaica Bauxite Institute, among others, are ready to start the negotiations as soon as Hansen is ready.

The minister had stated in his Sectoral Debate speech that the Government intended to renegotiate the Establishment Agreement with the companies, to maximise earnings from the industry.

Montague also announced the intention to trigger an audit of the operations at Jamalco to ensure that the people of Jamaica are getting what is due to them. He said there is a joint venture agreement with Jamalco, but the Government intends to formalise those arrangements along strict commercial lines.

“It will either sink or swim on its own, but the people of Jamaica must no longer be asked to subsidise the operations,” he assured the House of Representatives.

He also said that Clarendon Alumina Productions (CAP) Limited and his ministry will be signing an agreement for the incorporation of the entity.