OLB and Cargill secure continuity: Letter of Intent signed for leasehold extension on Bonaire

Representatives of OLB and Cargill Salt during the meeting to sign the temporary agreement. Photo: OLB

KRALENDIJK – The public entity of Bonaire (OLB) and Cargill Salt Bonaire B.V. (Cargill) have signed a so-called Letter of Intent (LOI) for the extension of the lease term granted to the company.

With the LOI, negotiations have commenced regarding the extension of the lease agreements for the business locations on Bonaire. Cargill currently owns leasehold grounds on Bonaire, issued in 1964 for a period of sixty years. This means that the current lease term would expire on April 24 of the coming year.

“The OLB considers Cargill a strategic partner and aims to safeguard the continuity of salt production on Bonaire,” says the local government in a press statement. They emphasize the importance of having a globally operating conglomerate on the island.

“Cargill Salt Bonaire is a crucial part of the global agro-industrial conglomerate Cargill: one of the four largest global companies in agro-trading. The salt produced by Cargill on Bonaire is exported to 8 different countries and is essential for industrial use,” according to the OLB.

Temporary extension

This letter of intent extends the current lease agreements for at least one year until May 24, 2025, and until an agreement is reached on new lease conditions and a collaboration agreement.

The Executive Council is of the opinion that this ensures the continuity of salt mining on Bonaire, jobs, and Cargill’s socioeconomic contribution to the island.

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