Guyana： Smelter relocation may be considered

"Guyana would possibly consider a proposal for the relocation of an aluminium smelter project from Trinidad and Tobago," Guyana Prime Minister Samuel Hinds said yesterday.

Hinds, who holds the ministerial portfolio for Energy and Mines, made the comment in a telephone interview yesterday from Guyana, in response to questions as to whether Guyana would consider a proposal to have a smelter plant, originally scheduled to be constructed here, relocated to his country.

Hinds said at present, Guyana has two proposals on hold for the establishment of an alumina refinery, aluminium smelter and hydro-power installations from two foreign companies operating bauxite mines in two locations in Guyana.

The two companies-Russian company RUSAL and Chinese company BOSAI, Hinds said, have conducted pre-feasibility studies on their proposals and were in the process of conducting feasibility studies when the global financial meltdown put the proposals on hold from the two competing firms.

Guyana’s alumina refinery, which was built prior to 1955, was closed in 1983, Hinds said, noting that since then Guyana has been exporting basically dried and calcined bauxite.

Asked whether Guyana is no longer interested in investing in a smelter to revive the faltering industry, Hinds, an engineer by profession who worked in the bauxite industry prior to becoming the country’s Prime Minister, said, ’I wouldn’t say that nothing is happening. Essentially that project is on hold due to the global financial meltdown.’

Since the process of economic recovery has begun, there has been a great demand for bauxite, he said, adding that the prices for its products and by-products in the world are getting better each day.

"Therefore, conditions are favourable for such developments in the bauxite industry in Guyana," he said. He expects that there would be resumption of talks between the government and the two companies on the subject of the refinery, smelter and hydo-electricity installations.

Apart from saying that Guyana would possibly consider a proposal from Trinidad and Tobago for the relocation of a smelter project to Guyana, Hinds said he could not comment further on the subject, since matters of foreign direct investment would be in the portfolio of President Bharrat Jagdeo.