Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Chinese producer of bauxite Bosai Minerals Group halted its operations in Guyana on Friday due to violent protests against the miner that left at least three deaths on Wednesday, said the President Donald Ramotar.
According to America Economía, the authority added the Chinese company is rethinking its business expansion in the country after the deadly events.
Police officers shot and killed three people Wednesday in the city of Linden, about 100 kilometers from the capital Georgetown, during demonstrations against rising electricity rates.
Locals claim Bosai Minerals is partly responsible for the government’s decision to rollback the electricity subsidy in Linden, resulting in higher tariffs.
All the company’s operations in Guyana, which includes gold and diamond mines, have been affected by the riots, as the workers cannot receive food and fuel from Linden, due to blockages.
Bosai division in Guyana has an extraction capacity of 1.2 million tons of bauxite ore a year, and an annual output of 350,000 tons of bauxite processed.
The company had planned to invest $100 million in Guyana this year to expand operations.
With less than 1 million people, Guyana’s mining industry is considered a key sector to the country’s economic growth.
4 Comments
ultvlugt
First of all Cecilia Jamasmie needs to get the facts straight before reporting. For someone with credentials as hers you would think she could have done a better job.
Ramotar is a liar and nothing he says is true. He is a poor excuse for a leader and those who support him and the majority of ignorant fools like himself.
There was NO riot. The police, with the instructions from the government, shoot to kill those people. Do your research and you will see. Secondly, Bosai shut operations because the workers stayed away. They were protesting for their rights.
I am wondering how much of the revenue from Bosai goes back into Linden, a town with 70% unemployment?
Skeptic
Why should people in Linden pay a fraction of the price for power paid by people elsewhere in Guyana?
ultvlugt
Ding dong!!! Do your research before commenting. If you can’t read and comprehend stop blogging… fool!!
Maya Trotz
First of all, this was not a riot. This was the first day of an approved 5 day protest organized by Lindeners over an approximately 800% increase in electricity costs. Police opened fire and murdered 3 persons who were exercising their right to protest. Bosai’s power plant supplies the Bauxite company as well as the Linden area. One should review the deal under which this occurred and ask 1) why is Bosai receiving duty free concessions on fuel; 2) why is Bosai allowed to set rates for Linden without going through the public services commission; 3) why is Bosai posting profits on electricity sale when it is in the Bauxite business; 4) why is the government subsidy for Linden higher than the cost of production of power; 5) what has Bosai done to provide jobs and long term economic growth for Linden and how many non Linden based workers are at Bosai; and 6) why are people in Linden paying costs associated with the power plant that should be borne by Bosai alone?