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Govt defends bauxite levy decision

by May 3rd, 2017

The government has defended its decision to suspend the collection of the bauxite levy from Jiuquan Iron and Steel Company (Jisco) limited.

Opposition Leader Dr. Peter Phillips has criticized the government over the decision to grant a waiver to Jisco limited.

Jisco has taken over the operations at Alpart, the country’s largest alumina refinery. Operations are to restart in the second half of this year.

Dr. Phillips says the administration is engaging in a pattern of discretionary waivers at the whim of the relevant minister, giving up revenue in one ministry, while another agency was expecting the funds.

In his response, Finance Minister Audley Shaw says the government had to make some decisions to keep the bauxite and alumina sector moving, since the financial crisis of 2008.

He states that the issue of a waiver was always on the table, when the talks with Jisco began to invest US $2 or 3 in the sector.

He says for existing companies such as Noranda creative ways had to be devised for the viability of the company.

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