The bauxite industry
Editorial
The two day forum on the bauxite industry organised by Mr Lincoln Lewis, the general secretary of the Guyana Bauxite and General Workers Union, was a useful exercise. Valuable contributions were made by a number of persons including the acting chief executive officer of the Linden Mining Enterprise Limited (Linmine) Mr Horace James, Dr Kenneth King, a former minister in the PNC administration and part of the privatisation team of that government, Mr Winston Brassington, the head of the Privatisation Unit and Mr Lewis himself. Mr James noted that the industry had been in a state of transition and limbo since l988 and that this had had dire consequences on the community at Linden. He referred to the declining use of refractory grade bauxite on the world market, the high overburden to ore ratio and the fact that bauxite ore is below the water table. He said that over the past three years the company had been operating at a loss of about US$4 million annually but still provided subsidised utility services to the community. He referred to the continuing dust problem, the siltation of the river caused by the operations and the high unit cost of production. On the other hand, Mr James noted that there was still a lot of ore in the ground (he estimated l00 years supply at current rates of use) and there was worldwide recognition that the company had the best quality refractory grade material. He said too that there was good installed infrastructure, excess capacity for machinery and fabrication and an experienced workforce. The CEO called for the utilisation of byproducts like kaolin and tailing material. He called as well for the removal of the subsidies and a capital replacement programme. Earlier efforts by the PNC government to privatise had not succeeded. Dr King noted that the Australian firm Minproc had been contracted to manage Linmine and increase production and bring it to the point of privatisation but this had failed. He noted that one of the recommendations from the forum was that a strategic alliance be formed with a major international bauxite company which would have the available resources and a ready market for the product. But can such a company be found? Mr Brassington said further efforts would be made to sell Linmine and Bermine and that advertisements would be placed by the end of September. Mr Lewis called for full consultation with the unions. Given the conditions outlined by the CEO and the fact that for ten years efforts to find a partner or buyer have failed and that during that period the PNC and PPP governments have had to inject US$70M to keep the industry going, there is clearly no easy solution available. This is still an important industry in Guyana in terms of employment if nothing else. Can anything be learnt from the situation in Jamaica where the industry seems to be doing better than it is here? Also, do the plans to set up a smelter in Trinidad open fresh possibilities and should efforts be made to visit Trinidad and get involved? 
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