Answers sought on purchase of Noble’s 55% interest in Jamalco

Durrant Pate/ Contributor

With yesterday’s announcement that American-based Century Aluminum is buying Noble Group’s 55% interest in Jamalco, the Opposition is on the hunt for answers to questions on the bauxite plant.

Century will buy Noble’s equity for $1 with the transaction set to close this month-end. The deal will help Century secure alumina for its aluminium smelters. 

However, the Opposition through its Energy and Mining Spokesman, Phillip Paulwell is seeking answers on the sale as well as answers to questions now before parliament. Speaking in the House of Representatives yesterday, Paulwell asked now that the sale of Noble’s interest in Jamalco to Century has been announced, will the government state whether its approval has been granted? 

CAP value being questioned

This, he argued is an essential prerequisite by virtue of the mining license before any sale can take place and further asked if the Minister of Finance will tell the country what the value of Clarendon Aluminum Partners (CAP) is, given that Noble has sold its shares for $1. CAP is the holding company for the Jamalco plant in Halse Hall, Clarendon with Nobel having a 55% equity with the remaining balance owned by the Government of Jamaica.

Jamalco was shuttered because of a fire in August 2021, which rendered the operations unviable. Paulwell pointed to matters arising from the fire such as repairs and reopening of the refinery, settlement of insurance claims, the use of the proceeds. He contended that the role of CAP in those matters have not been transparent. 

Paulwell argued that losses were estimated at US$500,000 per day with the company having property and plant insurance valued at US$250 million to address single incidents such as fire. He reminded the parliament that he had tabled questions on Jamalco in parliament in January, which were not answered, fell off the Question Paper and were retabled to be answered on April 18, 2023. 

“These questions remain outstanding Madam Speaker and I wish to suggest to the Minister that in our low trust environment these questions should be answered immediately. Now that the sale of Noble’s assets in Jamalco to Century has been announced will the government state whether its approval has been granted. This is an essential prerequisite by virtue of the mining license before any sale can take place, the Opposition Spokesman on Energy and Mining said.

With the sale being a foregone conclusion, he asked, “will the government now finally accept the Opposition’s position to shift the revenue regime from a direct taxation on profits and instead revert to the bauxite levy regime? That should have been the leverage exercised by the government before it grants its approval. As a responsible spokesperson, I won’t refer to information swirling out there in relation to the insurance proceeds. Let us get the answers quickly, Minister.”