Linden’s bauxite operations on brink of collapse- sources

Linden’s bauxite operations on brink of collapse- sources

by Denis Scott Chabrol Demerara Waves
Sunday, 05 August 2012 17:11

linden_bauxiteThe bauxite industry in Linden is said to be on the verge of collapse because the Chinese-owned BOSAI Minerals has not been producing bauxite for more than two weeks now due to unrest there.

Stockpiles have also gone low and the company is unable to satisfy existing and new demands, company sources said..

The company, according to well placed sources, has complained to government that Lindeners are continuing to block roads leading to the Chinese-owned BOSAI Minerals and threatening mine workers reporting for duty.

Residents there are opposed to the hike in electricity rates because government has reduced the subsidy by GUY$1 billion to BOSAI that generates power not only for ore processing but for use by the town.

Region 10 Chairman, Sharma Solomon has said that talks with government are making progress. The two sides are due to meet again on Monday.   

Well-placed sources say the company is unable to supply existing customers and is losing the prospects of securing new markets.

Demerara Waves Online News ( was told by usually reliable sources that BOSAI has complained bitterly to government that main road arteries remain blocked for more than two weeks now.

Debris is being burnt and mines workers are being threatened that Sunday is the last day that they would be allowed to enter BOSAI. Roadways are blocked with stone and burning debris.

BOSAI has already had to pay US$22,000 in demurrage costs for each day that a ship had remained docked awaiting bauxite supplies.

The unrest comes at a time when the company is hoping to secure more European customers but, according to one company official, the future looks dim because prospective buyers are worried that BOSAI would be unable to consistently satisfy demands.

Residents have been only allowing fuel tankers to enter and leave BOSAI to ensure that electricity is generated.

Soldiers and police have been able to clear only bridges but some roadways are still a ‘no-go’ for vehicular traffic.,

Recently, three persons allegedly armed with cutlasses were arrested for waylaying persons in the Rockstone area where a road had been ditched.

The protest action has been biting not only Region 10 but also Regions 7,8,9 that use Linden as a gateway to shuttle fuel, food and other supplies to mining and residential communities.

Region 8 Executive Officer, Ronald Harsawack told Demerara Waves Online News ( that the estimated 2,000 residents in Mahdia are without electricity because there is no fuel for the power company there.

The cost of food has also skyrocketed in recent days there, he said. One egg now costs GUY$120 and one pound of chicken is GUY$1,500.

In Lethem, residents there are still getting electricity but rationing of fuel has resulted in electricity being supplied only from 7 PM to midday.

The cost of gasoline has also skyrocketed from around GUY$1,000 per gallon to as much as GUY$3,000.


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