Mining Minister Robert Montague - Gleaner file photo
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Robert Montague
The government is to carry out an audit of Jamalco amid concern it is not earning from the operations despite signs its partner in the venture is profiting.
Jamalco is a joint venture between Noble Group and government-owned Clarendon Alumina Production (CAP).
Mining Minister Robert Montague announced the audit on Wednesday in the House of Representatives, saying it would ensure the people of Jamaica are getting what is rightfully due.
"Our partners cannot be making money and owning 55 per cent of the shares while CAP owns 45 per cent [and is making none]. Something seems to be wrong. The government has to borrow funds from time to time has to borrow funds in order to help to fund the operations. We want to know how the expenses are broken down and allocated," he insisted.
Mr. Montague said the government is also moving to regularise operations at Jamalco by incorporating the entity. He said this is aimed at ensuring tax dollars no longer go to the company.
"We have a joint venture agreement and we want to formalise the arrangements along strict commercial lines. it will either sink or swim on its own but the people of Jamaica must longer be asked to subsidise the operations," he declared.
Uncollected funds
Additionally, Mr. Montague said the government is taking legal steps to collect US$2.8 million owed to the Jamaica Bauxite Mining Limited.
"Our partners in the New Day plant are behind on some of their commitments, however, these funds belong to the people of Jamaica and we intend to use all legal means to collect. We have agreements and we have laws and we intend with the advise of the Attorney General's chambers to use them," he told the House.
Mr. Montague said another US$14 million is owed to the Ministry of Finance by the company.
He said an audit is also to be conducted in relation to the Noranda operations in St. Ann and overseas.
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