Falling Price of Bauxite Has Jamaican Government Concerned

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Falling Price of Bauxite Has Jamaican Government Concerned

The Jamaica government says it is holding talks with stakeholders within the vital bauxite industry with the opposition People’s National Party (PNP) expressing concerns at the falling prices on the global market for the commodity.

Mining Minister, Robert Montague, in a statement, said that his Ministry continues to have a dialogue with the stakeholders amid global concerns over the price of bauxite/alumina.

He said the meeting has already been held with representatives from the West Indies Alumina Company (Windalco), owned by United Company (UC) Rusal of Russia and that talks were also held with representatives of the Clarendon Alumina Company and Noranda Bauxite Company.

In the statement, Montague is quoted as saying that the authorities here are monitoring the industry in an effort to allay fears of any possible fallout and provide the requisite support aimed at protecting the welfare of workers and the livelihood of communities who depend on the industry.

Noting that the discussions remain at a delicate stage, Montague said that Jamaica’s interest is his first priority and that he will do whatever it takes to ensure that the country is protected.

“The Ministry continues to crave the understanding and support of the people while they treat with this situation,” he added.

Meanwhile, opposition spokesman on mining, Phillip Paulwell has warned of the possible closure of bauxite plants here as he expressed concern that aluminium prices are already showing signs of an impending global economic recession.

Paulwell, speaking on the RJR programme on Friday, told listeners that aluminium prices have fallen from an estimated US$2,200 per tonne to US$1,700 per tonne and in his opinion, this is approaching the benchmark for declaring a recession.

“When it gets to around 15-14 hundred (dollars), you’re really in a recession again, and as we have seen in the past, the Jamaican factories are the first to close when recession occurs because we are regarded as swing locations,” he said, noting that alumina prices have moved from US$500 per tonne to US$290.

Paulwell, a former energy and mining minister, said more than three years ago, companies required at least US$300 per tonne to break even, therefore, this is a sign that companies could already be losing money.

He is urging the government to be proactive to ensure local jobs are not lost