BAUXITE INDUSTRY
The Bauxite Industry was unprofitable since 1982 and it deteriorated further under the last PNC administration.
The poor condition of both plant and mine equipment had resulted in a heavy loss of market during the 80’s and early 90’s.
In 1985, there was a financial intervention of 34.5 million ECU by Sysmin (System of Mining Products – Special Financing facility), another one in 1991 by the World Bank. Sysmin and the European Investment Bank provided US$23 Million in credits in that phase for use in the Initial Restructuring Phase (IRP).
Despite all these interventions Linmine production fell (more than 45% from 1991 to 1992) and continued to drop thereafter. During this time also Minproc, was brought in under the PNC administration to manage the industry with the aim of making it profitable once again. This failed as Minproc’s management turned out to be worst than its predecessor.
A decision was taken by the Government of Guyana in June 2003 to have Linmine operations managed by Cambior, a Canadian company who owned OMAI Gold Mine. (OBMI) as an interim measure, until the financing for the full joint venture through privatization took place. In the month of December 2004 the Linden Bauxite was privatized by joint shares of Cambior having 70% shares and Government 30% shares. The Cambior shares were sold to BOSAI CHINA in year 2007.
LEAP
As a result of the failure of Minproc to make the Bauxite Company profitable and the heavy loss of employment, the PPP/C administration embarked on a study to look at methods of diversification from being dependant on bauxite only.
Hence the birth of the LEAP project, which was the brainchild of then President. Bharrat Jagdeo. That project which was financed under a grant from the European Union commenced in 2002 and concluded in 2009.
Some of the projects undertaken and completed by LEAP are:
> Rehabilitation and extension of West Watooka farm-to-market Road
> Installation of Culverts at West Watooka
> Rehabilitation of Moblissa road.
> Rehabilitation to 3 sluices/Kokers - Burnham Drive
> Construction of Spreightland Bridge
> Rehabilitation of the Mackenzie Car Park
> Construction of Sub-Office at Ituni for the RDC.
> Rehabilitation of Mackenzie Wharf and Building of stalls
> Rehabilitation of Hiamara Road
> Construction of water System at Moblissa
> Construction of Exhibition Center (Egbert Benjamin Center) –Mackenzie
LEN
The Linden Enterprise Network (LEN) is a new entity being developed to replace some of the activities that were done by LEAP and LEAF. Currently most of the logistics for startup have been completed and LEN would be in operation soon.
INVESTMENTS IN LINDEN
Over the last 5 years or so Linden has benefitted from substantial investment from the private sector. Some of those are as follows:
> BAI-SHANLIN – WOOD/TIMBER PROCESSING COMPANY – INVESTED US $10 MILLION
> SUNSHINE TIMBERS - WOOD/TIMBER PROCESSING COMPANY – INVESTED US5 MILLION
> ARAWAK SHOE FACTORY – INVESTED G$20 MILLION
> SEBRA WOOD – INVESTED US$75,000
> COMPARE BREAD – INVESTED US$125,000.
> TOUCAN CONNECTION – INVESTED US$ 510,000
> TRIPLE L’S BAKERY – INVESTED US$ 10,000.
> GNIC CONTAINER YARD – INVESTED US$855,000 – PREPARING FOR LINDEN/BRAZIL OPERATION.
> JB METALS – WORKSHOP AND OPERATIONS - INVESTED G$ 80 MILLION
> L&L MODERN RESTAURANT - INVESTED OVER G$45 MILLION
> A&R COLLISION WORKSHOP - INVESTED OVER G$35 MILLION
There are many other businesses in operation that were not listed here.
PROPOSED NEW INVESTMENTS EXPECTED
> The Hydro Project Road Project.
> SIMON AND SHOCKS – PROPOSED TO ERECT A NEW MODERN SAW MILL AT DALAWALA, LINDEN.
> POTENCIA INDUSTRIES - A Brazilian Firm – Would manufacture concrete posts. (for electricity transmission).
> LINDEN CONSTRUCTION MATERIAL COMPANY (for brick-making)