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Bauxilum guarantees alumina supply despite protests - Venezuela

Published: Wednesday, October 1, 2008 18:49 (GMT -0400)

By Harvey Beltrán, 

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Venezuelan bauxite and alumina producer Bauxilum has guaranteed alumina supply to domestic and foreign clients despite having seen a week of protests demanding the government's attention, a union leader told BNamericas.

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"We applied a contingency plan and we can guarantee the plant's operations. We are restricting the entry of personnel to the plant but operations are at 100%," said José Sánchez, general secretary of Bauxilum's union.

Employees have no plans to halt the plant's production because "if we reduce output we are losing and we will cause more financial problems, which will only aggravate the situation," he added.

The union leader said the protest is aimed at pressuring the country's ministry of basic industries and mining (Mibam) and state parent company CVG to resolve issues such as a lack of investments in the appropriate technology and fulfilling labor debts.

The tactic is also directed at updating President Hugo Chávez on the current state of the company and the country's aluminum sector. "We are convinced that [Chávez] isn't aware of the chaotic situation at companies in the sector," he said.

MANAGERIAL CHANGES

Regarding the constant turnover of senior executives at the aluminum companies, Sánchez said the government's decisions are only prolonging plans and projects.

"There is a transition period for every new hire and that does nothing positive for the productive process," he said.

CVG owns 99% of Bauxilum and also controls aluminum smelters Alcasa and Venalum along with carbon anodes manufacturer Carbonorca.

Bauxilum's labor director José China recently said the Bauxilum plant was producing less than 1,000t/d of alumina due to lack of investments.

The plant can produce 5,400t/d of alumina under normal conditions.

Bauxilum operates the Los Pijiguaos bauxite mine in Bolívar state and a 2Mt/y alumina plant in the city of Puerto Ordaz, both in Guayana region.

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