Alcoa will meet the bauxite negotiating team here on August 20, where talks will likely focus on comments on its concept paper proposing a merger of its operations at Aroaima with Bermine's Kwakwani operations.

Alcoa had responded to the invitation of the bauxite negotiating team with an offer for a meeting in New York, Miami or Georgetown. Stabroek News understands that the dates originally proposed for the meetings in North America were August 11-12, and August 19 for Guyana.

The team met yesterday morning to decide on a response to Alcoa, as well as to get an update on what had been happening, since it has not met for a while.

This is the second response from Alcoa to the invitation sent by the bauxite negotiating team over the July 7, weekend. In its first response, Alcoa had indicated that it would not be available to meet the team until after July 19, and reiterated the need for an urgent response to the main points of its concept paper.

It said that it needed to have the government's response to its proposals because its ore reserves at Aroaima were due to run out within three years, and it would be necessary to make a decision about its continued involvement in the industry here.

Informed sources told Stabroek News that the negotiating team assured Alcoa that access to ore reserves was not a problem as it was prepared to consider making enough reserves available to sustain a project for a minimum of 15 years.

The bauxite negotiating team comprises Prof Clive Thomas and Geology and Mines Commission Chairman Robeson Benn as co-chairmen and Odinga Lumumba and Lance Carberry as its other members.

Meanwhile, the team met the Bermine Employees Group which had also submitted a proposal for the continued operation of the facilities at Everton which would be closed under the Alcoa concept paper, and the facilities at Kwakwani.

Stabroek News understands that the two sides are to meet again before the Bermine Employees Group responds to the requests for a detailed business plan and other details from the committee.

Apart from the merger of the Aroaima and Kwakwani operations, the Alcoa paper proposes that the US$57 million debt owed to it by Aroaima, be converted into equity in the new company and that the workforce be reduced over a three-year period from 940 to 400 employees. Alcoa and the Guyana government jointly own Aroaima. The debt was originally owed to Reynolds which had provided the start-up capital for Aroaima which it then owned with the Guyana government. Alcoa inherited the debt when it took over Reynolds.

The negotiating team was appointed after President Bharrat Jagdeo and PNC/R leader Desmond Hoyte had established a committee to look at proposals for the sustained operations of the bauxite industry in Berbice and for resuscitating the bauxite industry as well as the community at Linden. It was also required to look at the proposals contained in the Alcoa concept paper, which the government had indicated it was in favour of accepting. Prime Minister Samuel Hinds said that the Alcoa proposal offered the opportunity of having half a loaf, rather than no loaf at all.

As a result of its report on which there was no consensus, President Jagdeo and Hoyte appointed the negotiating team to enter into negotiations with Alcoa and Bermine on their proposals.