UC Rusal staying, says Broderick

Russian conglomerate UC Rusal will continue operating in Jamaica, minister of state in the Ministry of Energy and Mining, Laurence Broderick, told lawmakers Tuesday. The company had announced that its Jamaican operations would be shuttered for about a year, but two months ago, Prime Minister Bruce Golding said the company might never reopen its plants if no cheaper energy sources were found to power them. But Rusal also had bigger problems - falling revenue and an unsustainable debt load that it is in the process of restructuring. "They have successfully negotiated debt rescheduling arrangements with a consortium of Russian and western banks amounting to US$11.9 billion, out of a total debt of US$14.5 billion," Broderick said during the Sectoral Debate in Parliament. "We have been assured that the company is trying its best to resolve its debt situation in a manner that will ensure its long-term future and involve little or no disposal of existing assets." Broderick said Rusal's assurance of continued operation was secured in talks with the company sought by government, using diplomatic channels, and meetings with company officials. "Despite the present difficulties relating to the global downturn in the aluminum industry and their own financial difficulties, UC Rusal has unequivocally asserted that they intend to remain in Jamaica for the long haul," Broderick said. Majority Ownership The company has majority ownership in Alpart and the Windalco operations at Ewarton and Kirkvine, and is said to control about 55 per cent of Jamaica's bauxite/alumina production capacity. Operations at the plants have been scaled down since April of this year, after world alumina prices dropped to US$1,300 per tonne, from a peak of US$3,380 per tonne. Prices have since recovered to US$1,730 per tonne. business@gleanerjm.com