AMMAN -- Jordan Phosphate Mines Company (JPMC) managed to stop dealing with marketing intermediaries and to sign direct agreements with importers, including seven in India, one in Indonesia, Turkey and Bulgaria.
In an interview, JPMC Chairman Wasef Azar said on Monday that these achievements realised during the last few months will complement plans to increase the company's production of raw and processed minerals.
"The plans include raising the company's overall production to 15 million tonnes by the year 2015 and 20 million tonnes before the end of 2020," he indicated.
"Raising production requires increasing the company's capital," Azar said stressing that JPMC's main goal is to increase output, boost investments and create more work opportunities.
The chairman added that the company is working to increase the processing of raw materials to 75 per cent of the overall production and improve the added value of products in terms of quality, storage, maritime activities, insurance and transport.
Azar described phosphate as a "national treasure that should be controlled by Jordan alone without the involvement of investors who want to influence this course".
He emphasised that decisions taken by previous administrations were for the "utmost benefit of the company".
However, Azar said the strikes, which have been carried out by the company's staff and retirees since the start of this year, have "hit" the company's investments and kept investors at bay.
He warned that massive strikes affected the quality of production and revenues, hampering the export of about 25,000 tonnes a day.
According to the chairman, the company incurred JD4 million in losses as a result of fines paid for ships contracted to transfer phosphate,
"Other strikes, especially those in the southern region, have frightened away potential investors the company had gone miles to attract and sign agreements with. The vast majority of those investors were from neighbouring Arab countries," the JPMC chief said.
Strikes and work-stoppages have caused a 19 per cent drop in output until the end of September to 4.634 million tonnes compared with 5.710 million tonnes generated during the first nine months of last year, according to Azar.
The production of fertilisers also went down by 21 per cent during the same period to 432,000 tonnes compared with 544,000 produced last year, the chairman indicated.
He pointed out that phosphate exports went down by 20.5 per cent during the first nine months of 2012 to 3.172 million tonnes compared with 3.989 million exported during the same period of last year.
Azar estimated the value of materials that have not been exported due to strikes at the Aqaba Railway at $24 million, whereas losses incurred by the company due to fines imposed for the delay in delivery at $15 million.
He called on the company's retirees to stop striking, adding that if they believe that there are injustices, they can resort to court and the company will be ready to pay the litigation and lawyers' fees and any response to all court decisions.
© Jordan Times 2012
