Jamaica expects reopening of Alpart to boost mining sector contribution to GDP in next few years

Jamaica’s Minister of Transport and Mining Mike Henry says that the re-opening of the JISCO Alpart bauxite/alumina plant has already created positive vibes in St Elizabeth and neighbouring Manchester. He says that this has marked a positive beginning and the revival of mining in Jamaica.

He was speaking at the 'production restart ceremony of the Alpart plant called ‘JISCO's partnership in Jamaica's progress' at St Elizabeth. The event was highlighted by the official resumption of refining at the plant, which had been closed since 2009 due to global economic crisis on the bauxite/alumina market.

“It's the revival of the mining industry, and I am given to put it in perspective because I want to ensure that the distortions of history are corrected,” he said.

Henry credited the former government for starting the discussions in this regard which finally led to the sale of Alpart to JISCO by its former owner, Russian aluminium major UC Rusal.

“…we were able to strike an agreement for full payment to creditors/ suppliers and workers of the Jamaica operations, and save the jobs of over 400 workers and over 400 contractors of services who were on the brink of joining the unemployment lines,” he stated.

Henry also said that he and the minister of science, energy and technology were impressed with JISCO's operations and their technological expertise.

He also said, JISCO has spent more than US$360 million on its Jamaican operations — US$299 million on acquiring the plant, and over US$60 million to facilitate the reopening, which is expected to be fully operational in 12 months. The total investment, according to him, which will include a new alumina plant, would be over US$2 billion.

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He also added that the government would make sure to return the mined out lands to the people whose lives were affected by mining operations. He also promised a new national minerals policy for Jamaica, which, he said, would be presented to cabinet shortly.

Henry said that, with the proposed expansion of Alpart, UC Rusal's plans to rehabilitate, construct and reopen Kirkvine, Jamalco's new power plant would also come on stream. This, accompanied by New Day's expansion of their mining areas, would boost the contribution of the mining sector to the GDP to about 40 per cent over the next few years.