Changing Ownership of Individual Operations Dr. Carlton Davis - - PowerPoint PPT Presentation

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Changing Ownership of Individual Operations

• Dr. Carlton Davis

April 1, 2009

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Table 1 Bauxite and Alumina as a Percentage of Jamaica's Total Export Earnings – 1974 – 2008 by Decades

56% 2004 – 2008 56% 1994 – 2003 55% 1984 – 1993 68% 1974 – 1983

Table 2 Employment Levels by Activity- Jamaica Bauxite/Alumina Sector (Other includes Management Staff, transportation, Construction)

Economics Division, JBI 2009/03/25

3,444 308 34 194 1,954 954 2008 3,570 348 35 168 2,029 990 2007 3,498 334 35 247 1,877 1,005 2006 3,551 279 36 255 1,929 1,052 2005 3,780 431 45 166 2,039 1,099 2004 3,845 375 47 200 2,108 1,115 2003 3,723 418 47 167 2,071 1,020 2002 3,461 324 49 214 1,875 999 2001

TOTAL OTHER AGRICULTURE PORT ALUMINA PLANT MINING & DRYING YEAR

Table 3 Direct Wages and Salaries from Industry 512.0 2004 - 2008 498.7 1999 - 2003 519.9 1994 - 1998 286.1 1989 - 1993 170.3 1984 - 1988 319.8 1979 - 1983 313.3 1974 - 1978 US $ Million Five Year Periods

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Table 4 Wages and Salary Earned Locally Year-by-Year 2004 – 2008 and 2009 (P)

Source – Company data filed with the Government as per Reg. 58 of the Mining Act.

110.00 (Est) 2008 110.47 2007 100.67 2006 99.77 2005 85.75 2004 Earnings (US$ million) Year

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Table 5 Capital Investments by the Bauxite and Alumina Companies US$ Million 2000 – 2007

367.1 2006 262.8 2007 132.0 2005 55.5 2004 146.8 2003 107.3 2002 81.7 2001 97.8 2000 Total Invested Year

Table 6 Aluminium Prices (London Metal Exchange Cash 1989-2008 and 2009) (P) (US$ per tonne)

1599 1997 1357 1998 1440 - 1500 2009 2578 2008 2638 2007 2569 2006 1898 2005 1716 2004 1431 2003 1350 2002 1444 2001 1549 2000 1361 1999 1506 1996 1806 1995 1477 1994 1139 1993 1254 1992 1475 1991 1657 1990 1951 1989

Table 7 Year-by Year Fuel Oil and Caustic Soda Prices Cost per tonne to two Jamaican Refineries (US$ per tonne)

Caustic Soda Fuel Oil Year 520 275 2009 423 477 2008 298 304 2007 374 296 2006 263 194 2005 168 147 2004 143 141 2003 185 121 2002 237 109 2001 127 104 2000 151 73 1999 186 73 1998 140 97 1997 254 99 1996 261 81 1995 55 70 1994 144 66 1993 266 68 1992 305 85 1991

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Table 8 World Primary Aluminium Supply and Demand (Kmt) 2007, 2008, 2009 Jan

Source: CRU Monitor Aluminium February 2009

473 2,613 3,086 2009 (Jan) 2163 37,665 39,826 2008 274 37,838 38,112 2007 Difference Demand Supply Year

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Table 9 London Metal Exchange Stocks (Kmt) 3,456 2009 (March 26) 2,338 2008 (Dec) 930 2007 (Dec) Level of Stocks Year

Table 10 Changing Ownership of Individual Operations North Coast Bauxite Mining Operation

*Government of Jamaica owned assets only for which it receives a defined return

• n investment. All production went to 49% owner.

**Same arrangement as above. St. Ann Bauxite Ltd is 50% owned by Century Aluminum (of which Glencore owned/owns 25% - 30%) and 50% Noranda Aluminum (Up to April 2007 owned by Xstrata of which Glencore owned/owns 35% and since by Leon Black’s Apollo Management

• St. Ann Bauxite Ltd.
• 49%

Government of Jamaica

• 51%

2004-2007** Kaiser Bauxite Company - 49% Government of Jamaica - 51% 1980-2004* Kaiser Bauxite Company - 100% 1968-1980

Table 11 Changing Ownership – Alpart

UC Rusal

• 65%

Hydro Aluminium

• 35%

2007- Glencore

• 65%

Hydro Aluminium- 35% 2004-2007 Kaiser

• 65%

Hydro Aluminium- 35% 1988-2004 Kaiser

• 50%

Reynolds

• 50%

1985-1988 Kaiser

• 36.5%

Reynolds

• 36.5%

Anaconda

• 27%

1969 - 1985

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Table 12 Changing Ownership – Windalco

UC Rusal

• 93%

GOJ

• 7%

2007 - Glencore

• 93%

GOJ

• 7%

2001 – 2007 Alcan

• 93%

GOJ

• 7%

1978 – 2001 Alcan

• 100%

1952 – 1978

Table 13 Current Ownership of Individual Bauxite and Alumina Operations

****60% Alcoa, 40% Alumina Ltd of Australia, but effectively managed by Alcoa. **50% Century Aluminum of the USA and 50% Noranda Inc. (owned by Leon Black’s Apollo Management of the USA). ***Comprises ‘Oleg Deripaska’s , Basic Element, 53.8%. Two other Russian companies, SUAL, 18.9%, Onexim, 18.5% and Glencore, 9.7%. *Assets Ownership only for which it receives a defined return on

• investment. No access to production.

4,400,000

Total Alumina: UC Rusal*** - 93% Government of Jamaica - 7%

1,250,000

Alumina WINDALCO Alcoa World Alumina**** 55% Government of Jamaica – 45% 1,450,000 Alumina JAMALCO UC Rusal*** 65% Hydro Aluminium – 35% 1,700,000 Alumina Alpart Government of Jamaica* 51%

• St. Ann Bauxite Partners** 49%

Total Bauxite: 4,700,000 Bauxite

• St. Ann Bauxite Partners

Ownership Capacity tonnes per Annum Name of Operation