Jamaica persuading Rusal to acquire Windalco

In the face of US sanctions against Russian aluminium company Rusal, bauxite sources in Jamaica are floating the idea that UC Rusal may have to be persuaded into giving up controlling interest in its local bauxite operations for avoiding the further consequences.

Although the situation has now turned different earlier this week as the United States softened the sanctions on Rusal for next five months, yet the Jamaican Government expects Rusal, the owner of Windalco, to face problems in securing its raw materials for local output, as reported by Minister of Transport & Mining Robert Montague on Tuesday in an update to Parliament on the sanctions threat.

Montague has sent a clear signal on Tuesday that the Government is ready to take over Windalco in the national interest, even while noting it would be a last resort.

However, an industry official reported a day later that “Rusal is not interested in selling”, while adding to the point that Jamaica may have to force Rusal into diluting its interest in Windalco.

Rusal’s country manager has advised the Government that it would like to retain the ownership of Windalco. But Montague mentioned the possibility of the Government acquiring control on Tuesday.

Opposition spokesman Phillip Paulwell is of opinion in this regard that the Jamaican Government has no funds to buy back Windalco and therefore, the better option would be a Jamaican private sector arrangement involving the ESOP.

"I would not support the Government of Jamaica actually purchasing the company from Rusal," said Paulwell. "We have never had Jamaicans participating in this industry. Now that the industry is on the upturn in terms of the price of alumina being high for a number of years, it would be a good opportunity for Jamaican private-sector persons to get involved," he said.