A Scottish government guarantee related to a loss-making aluminum plant owned by...
FORT WILLIAM, Scotland - A Scottish government guarantee related to a loss-making aluminum plant owned by commodities tycoon Sanjeev Gupta is worth more than half a billion pounds, nearly twice the amount previously known, according to people familiar with the matter.
The Scottish government – which has publicly said it provided the guarantee to safeguard jobs at Britain’s last-remaining aluminum smelter — has also told the company it could provide additional support worth hundreds of millions of pounds subject to further investment, the people familiar with the matter say. The smelter employs about 100 people, according to GFG Alliance.
It added that it has “obtained appropriate protections in support of the guarantee” and that the deal was approved by Scotland’s cross-party finance committee.When asked about the size of the guarantee during a February interview, Gupta said the Reuters figure “sounds about right.” The guarantee relates to payments from the aluminum smelter - located in the West Highlands town of Fort William - to an adjacent hydro power plant that supplies its electricity, both purchased by GFG in 2016. The government guaranteed 80 percent of the value of a 25-year power supply contract between the power plant and the smelter.
“It’s weathering the storm until where the wheels plant is generating revenue,” said general manager Kerry McDonald at the site one morning in March.The government said any payments related to these bonds in the event of default would come from its Westminster-funded capital budget, which is used to build schools and hospitals. It said the risk to taxpayers was mitigated because GFG had pledged the smelter and adjacent power operation as security.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Exclusive: U.S. preparing to sell over $2 billion in weapons to Taiwan, testing China - sourcesThe United States is pursuing the sale of more than $2 billion worth of tanks an...
Read more »
Mega Millions jackpot is now more than half a billion dollarsThe next drawing is Friday, June 7 at 11 p.m. ET. It's the first time the Mega Millions jackpot has exceeded $500 million since last October's record-breaking $1.5 billion mark.
Read more »
Jay-Z And Beyoncé Now Have A Combined $1.4 Billion Net WorthIt's been a big week for the Carters. We pronounced Jay-Z a billionaire, and Beyoncé claimed the No. 51 spot on our SelfMadeWomen list with a net worth of $400 million
Read more »
Jay-Z And Beyoncé Now Have A Combined $1.4 Billion Net Worth'What's better than one billionaire?' Jay-Z and Beyoncé are now well into 10-figure territory
Read more »
Mega Millions jackpot goes up to nearly half a billion dollarsCNN News, delivered. Select from our newsletters below and enter your email to subscribe.
Read more »
Why Chick-fil-A's decision to close on Sundays is a brilliant business strategyChick-fil-A locations are all closed on Sunday, in keeping with founder Truett Cathy's Christian faith. Here's why it's a brilliant business strategy.
Read more »
Queen Elizabeth hails the US-UK alliance and references Trump's Scottish heritage in welcome remarksQueen Elizabeth II welcomes President Trump and first lady Melania Trump: “Tonight, we celebrate an alliance that has helped to ensure the safety and prosperity of both our peoples for decades, and which I believe will endure for many years to come”
Read more »
The U.S. owns the world’s most gold, with a reserve worth $373 billion. Here’s who comes in secondThe U.S. owns the world’s most gold with a reserve equal to 8,133 tonnes, worth more than $373 billion. Here's the country that comes in second:
Read more »