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Good news for Jamaica's bauxite/alumina sector


Post Date: 07 Jan 2015    Viewed: 322

That people in south-east St Elizabeth are joyful at news of the resumption of bauxite mining in their region this month, and even more importantly the planned reopening of the Alpart alumina refinery by the end of 2016, shouldn't surprise anyone.

As we have pointed out previously, the collapse of the bauxite/alumina sector in St Elizabeth and Manchester in 2009 has had calamitous economic consequences, not just locally but for all Jamaica.

Truth be told, that sector's fallout in 2009 had much to do with the eventual decision by the government of the day to seek a borrowing relationship with multilateral lender, the International Monetary Fund (IMF).

All things considered, this newspaper is suggesting that those in government responsible for providing public information make sure that information flow with regard to this expected revival is consistently accurate, readily available, and easy to understand.

To begin with, they would do well to make sure that it is properly understood among the populace -- particularly in St Elizabeth and Manchester -- that revival is scheduled to take place over a period of close to two years, rather than at one stroke.

As we understand it, bauxite mining in the Alpart reserves of Manchester and St Elizabeth resumes this month. Exports of raw bauxite are scheduled to start in mid-2015.

Alpart refining will actually resume in late 2016, according to the plan outlined by mining minister, Mr Phillip Paulwell.

The minister has said that, over that 15- to 18-month period, 1,200 jobs are likely to be created.

We are told that, at full capacity, the modernised Alpart plant -- which is owned by the Russian conglomerate UC Rusal -- will be producing 1.65 million tonnes of smelter-grade alumina, valued at US$500 million. Prior to that, over the next 18 months, the plan will be to mine and export up to two million tonnes of raw bauxite, valued at about US$60 million.

Also, the development of what Mr Paulwell has described as "appropriate" energy solutions to make the previously woefully inefficient Alpart plant more competitive will add to employment opportunities.

Jamaicans have been told that UC Rusal will modernise the plant, in particular through the generation of steam and electricity, and that excess production will go to the national energy grid.

Of interest, Jamaicans have had no recent word as to the status of the Kirkvine plant in Manchester -- also owned by Rusal -- which, like Alpart, was closed in 2009.

That aside, Mr Paulwell, speaking in Mandeville in November, pledged that in this new dispensation bauxite/alumina companies will be expected to pay their full share of taxes and levies. In 2015, Jamaicans should seek to make sure that this promise is kept. If it's not kept, they should demand the reason.

Of equal importance is the natural environment. Again, Mr Paulwell has pledged that the companies will be held to account and will be required to abide by all environmental rules and regulations.

It is no secret that, down the years, not nearly enough attention has been paid to the upholding of environmental standards in Jamaica's bauxite mining and refining areas.

Not just the State-run NEPA, but perhaps even more importantly private/voluntary environmental groups and independent environmentalists should pay keen attention to developments in this latest phase of bauxite/alumina development. Indeed, all Jamaica should stay very alert. 


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