Recovery of Jamaica's Bauxite/Alumina Sector?

Bauxite/Alumina has long been a major part of our history, at least in independent Jamaica. It is the heaviest industry in Jamaica. Before the recession in 2008/2009, Jamaica was producing in excess of 14 million tonnes of bauxite, and approximately 4 million tonnes of Alumina annually. This has fallen significantly, especially with two dormant plants since 2009. Export earnings peaked at over US $1.3 billion in 2008, making the bauxite/alumina Sector the third largest foreign exchange earner.

However, with the price of Aluminum well below that of 2008, export earnings are markedly below the aforementioned figure. The sector was dealt a severe blow in the recession, attributable to lower prices of the metal, in addition to exorbitant energy cost. Two of our four Alumina plants have been closed since 2009, But recent announcements suggests that this could change in the short to medium term. For additional information on the bauxite/alumina Sector, visit: Jamaica Bauxite Institute

Bauxite mining in Jamaica. Source of Image:JIS

The announcement by minister Phillip Paulwell, of impending mining operations at Aluminum Partners of Jamaica (ALPART) has been greeted with excitement, especially in south east St Elizabeth and south Manchester. These bauxite producing areas have been plagued by high unemployment, and weak economic activity. But residents are now optimistic about a possible change in fortune.

Mining operations at ALPART is said to resume in January 2015, with export of the ore in July 2015. Sadly, residents have to wait until December 2016 before the Alumina refinery is up and running. Minister Phillip Paulwell states that investment in a power plant, port and plant facilities amount to approximately US $ 400 million, with job opportunities for a possible 1200 people.

A visit to nearby communities in which Alpart and Kirkvine plants operate makes the fallout in bauxite/alumina sector conspicuous, many towns or communities appear as virtual ghost towns, namely Nain in south east St Elizabeth and Content in Central Manchester. Mandeville, Manchester is doing better, but the fallout is still evident, any upswing in bauxite/alumina is a positive for the aforementioned area.

Word from Phillip Paulwell, suggests that discussion on the future of the Kirvine refinery is taking place. A positive outcome should be welcome. In terms of the wider Jamaican economy, having these plants open will help to decrease the unemployment rate, increase foreign exchange earnings and help to boost GDP growth.

Though many positives are associated with the bauxite/Alumina sector, issues of land reclamation has been perennial. Steps should be taken to remedy this problem.

 Land reclamation in central Manchester. Source of image: nigel182

But all and all, with improving Aluminum prices, steps taken to lower the cost of energy, and more automobile manufacturers planning to substitute Steel with Aluminum. Sustained growth in our bauxite/alumina sector seem likely, especially if the above conditions come to fruition. With that said, mining and alumina production in Jamaica should continue for sometime.