GEORGETOWN, Guyana (AFX) - Cambior Inc. will shut down its bauxite mine in Guyana for July and August due to stiff competition from Chinese firms, officials said.
The Montreal-based company said its operation in Linden, a mining town 70 miles (113 kilometers) south of Georgetown, would temporarily close because Chinese firms were able to produce high-end bauxite at a lower cost. Cambior will lose between US$4 million (euro3.1 million) and US$5 million (euro3.9 million) during the shutdown, the company said Saturday in a statement.
Some 500 workers are to be temporarily laid off this week, while another 61 have been dismissed in recent weeks, the statement said.
Guyana and China are among a few countries that produce a high-grade bauxite for aluminum used in aircraft and industrial construction, and to make kitchen utensils.
Cambior has invested more than US$22 million (euro17.2 million) reviving bauxite mines in Linden over the past two years. It closed its gold mine in western Guyana last year after reserves ran out following 12 years of mining.
Cambior has stockpiled large amounts of bauxite ore and could resume work before September if price levels improve, said company spokesman Peter Benny. He also blamed high fuel prices for driving up costs.
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