The Jordanian government recently approached various international companies in search of a financial consultant to advise on matters related to the privatization of the Jordanian Phosphate Company.
In recent years, the company has suffered from substantial debts and losses, according to Al-Sharq Al-Awsat daily. The government hopes to restructure and revive the company, which controls a substantial portion of Jordan’s minerals exports.
In contrast to its present financial situation, the phosphate company used to be a major source of foreign currency for Jordan. However, by the end of 2000, it had reported losses of 128 million Jordanian dinars ($180 million), of which JD 50 million was allocated to early retirement funds and JD29 million for loss write offs.
So far, several studies have been conducted to improve the company’s performance. Suggestions for recuperation included plans to halt production from the Hasa and the Wadi Abyad mines, whose high production costs at times exceeded sale prices.
In addition to the Jordanian Phosphate Company, the Arab Potash Company, which together with the former comprise the country’s mining industry, is also expected to undergo privatization next year. –(MENA Report)
© 2001 Mena Report (www.menareport.com )