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Bosai, for the first time, forks over US$3M in dividends

Government has reportedly managed to collect US$3M in dividends from Chinese-controlled Bosai Minerals Group.

The money came after Cabinet ordered a ministerial-led team to review the operations of a number of foreign investors involved in the extractive industries.

There are burning questions about what Guyana is getting from a number of foreign investors.

Kaieteur News was told yesterday that the US$3M was collected by the National Industrial and Commercial Investments Limited (NICIL), the state company which controls shares.

The dividends represent one year of dividends from Bosai.

That company which came here in the latter half of the 2000s, is operating the Government’s bauxite facilities in Linden, Region Ten.
The negotiations would have been conducted over a period of two months, Bosai sources confirmed yesterday.

Sitting on Bosai’s Board is the head of NICIL, Colvin Heath-London.

The collection of that US$3M would drive home of how much Guyana is losing but not collecting its dividends.

It would appear that Bosai did not pay dividends since its operations start in 2008. The news would raise concerns about Government’s likely strategy now for Rusal.

There are no NICIL officials sitting on Rusal. Rather, a government representative, Lance Carberry, sits on the Board.

Rusal, owned by the Russians, operates Bauxite Company of Guyana Inc., which has operations at Kurubukali and Aroaima, Upper Berbice River, is under fire for its operations.

The company, of which Guyana owns 10 percent, has been shipping out bauxite for around 12 years.

It has been handed billions of dollars in tax and duty free concessions on fuel.
However, it has failed to remit any dividends to Guyana for that 10 percent stake.

Through those 12-odd years, the company continuously declared no profits. It was, however, taking out the bauxite by the shiploads.
Consecutive governments have treated Rusal with kids’ gloves, even when the company refused to engage labour officials or the union.
Earlier this year, Government was forced to step in to broker an uneasy peace after workers struck for better conditions.

After a month-long standoff which saw the Berbice River blocked, an agreement was reached for the resumption of work.
Talks have again broken down for better wages with the matter headed for arbitration.

Recently, Rusal has been attempting to ship out its heavy-duty trucks but was blocked by the Guyana Revenue Authority and other authorities,
Bosai officials’ recent visit Rusal’s operation is a signal for a possible partnership.

The news of the US$3M dividend came Government, two weeks ago, announced the formation of a ministerial-led team, also involving regulatory officials, to review the operations of foreign-owned mining and other extractive companies.

In November 2008, it was announced that Bosai would plug US$1B into Linden and create 700 jobs.
Managing Director of Bosai, Zhilun Yuan, had said then that the project will be successful if the Government of Guyana and Bosai work closely together to achieve common goals.

He said that the money would be sourced from Chinese banks. The project had come just eighteen months after Bosai acquired the bauxite assets once owned by Omai Gold Mines Limited.

J.K Fang, Manager of International Projects, noted that the joint venture will be exempted from corporation tax for the first 10 years of operation.

Source: Kaieteur News.

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