LINMINE privatisation set for May
-- feasibility study completed, investors being sought

Guyana Chronicle
January 21, 2003

Related Links: Articles on bauxite
Letters Menu Archival Menu


THE newly configured Linden bauxite mining operations which will see a majority equity relationship between the Canadian mining company Cambior and the Guyana Government, the latter group holding 70% of the shares, is poised to take effect by this May, according to LINMINE Chief Executive Officer, Horace James.

In a recent interview with the Government Information Agency (GINA), James said that following the June 2002 clinching of an initial deal between Government and Cambior, the parent body of the Omai gold mining company operating in the Essequibo, the firm has since completed the feasibility study for the perpetuation of the LINMINE (Linden Mining Enterprise) operations.

The study is now in its compilation stage and an official report is to be handed over to the major stakeholders within two to three weeks, he said.

Touching on recent pronouncements by the main opposition People's National Congress Reform (PNC/R) on the state of the LINMINE operations, with particular emphasis on "staff redundancy and assets disposal," James confirmed that some 250 workers have opted for redundancy and have since received their benefits.

In addition, another 211 mineworkers were made redundant by virtue of Cambior's new contract with LINMINE, bringing to a total, 461 former LINMINE workers, James pointed out.

Among those made redundant were workers of the Heavy Equipment Engineering Department (HEED), which was tasked with repairing and servicing equipment employed in the mines.

With Omai recently contracted by LINMINE to conduct stripping and mining for the bauxite company at its East Montgomery mine site, that firm is utilising its own modern and more advanced equipment in the fields, creating less need for manual labour, James explained.

Under the latter arrangement which was clinched last December but took effect on January 9, a mining target of 530,000 tons of bauxite and the stripping of some 1.5 million cubic centimetres of bauxite overburden has been set by LINMINE for the company's undertaking.

"I am confident that with the larger equipment, they (Omai) will meet the specified target," the LINMINE CEO said.

Reflecting on previous mining contracts Omai had undertaken on a smaller scale in comparison to the current mining operation at East Montgomery, James said, "LINMINE was quite satisfied with the performance of Omai when they were operating the Dacoura mine between 2000 and 2002."

He also noted that LINMINE received the best costs from Omai for its stripping and mining operations, which the bauxite entity could no longer sustain due to its under-serviced equipment.

Touching on the disposal of LINMINE assets, James said the management met and took a decision to give first preference to staff for the sale of assets no longer needed for the functioning of the company.

It is against this background that several employees have been given wooden huts measuring 10 x 12 ft, he said, adding that these facilities served as restrooms for the workers, many of whom do not own their own homes.

In addition, he said that an auction for vehicles was staged for the benefit of former LINMINE workers.

"Only pick-ups that were down for two years were involved in the bidding among employees," James said.

He stated that they have no regret in affording the LINMINE workers the first opportunity at acquiring items that are of no commercial value, which will help to equip them to start some form of business for themselves.

"As a company, we need to look at the workers once the opportunity presents itself for them to move on, once it does not jeopardise LINMINE's functions," he said.

Meanwhile, Cambior and LINMINE remain actively in pursuit of financers for the new LINMINE operations. (GOVERNMENT INFORMATION AGENCY - GINA)

Site Meter