Jamaica Bauxite Institute gets budgetary support from Capital Development Fund

<p>The House of Representatives has approved $715.687 million grant to the Jamaica Bauxite Institute (JBI) from the Capital Development Fund (CDF), as a budgetary support for the 2017/18 financial year.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/Mining-640x425.jpg" alt="news" width="517" height="226" /></p> <p>Minister of Finance and the Public Service, Hon. Audley Shaw confirmed that JBI is to receive $223 million in budgetary support for the 2017/18 financial year. Besides that about $487.367 million is to be reimbursed to Jamaica Bauxite Mining which they paid to Glencore AG as advanced payments on behalf of the Government. The reimbursement was the result of the termination of a supply agreement between JBM and Glencore, and JBM&rsquo;s failure to fulfil its supply quota. Dr. Peter Phillips, the leader of the opposition also approved the withdrawals from the CDF.</p> <p>He however urged that the country needs to take stock of the future of the bauxite industry and &ldquo;our expectations of it.&rdquo;</p> <p>&ldquo;The industry is at a crossroads and the earnings are uncertain. We are still not clear what the policy in relation to the bauxite levy is,&rdquo; he added. He highlighted the fact that the new owner of Alpart has no levy attached to it.</p> <p>Mr. Shaw said that the grant was in support of the bauxite industry which continues to be an important sector for Jamaican economy.</p> <p>{googleAdsense}</p> <p>Commenting on the bauxite levy he said:</p> <p>&ldquo;It is to be admitted that in relation to the bauxite levy, this is an issue that crosses Government lines. These requests for the easement of the levy have come on occasions with the declining fortunes of the industry as a whole. So, I readily agree that we have to seek to get the levy back on track as soon as possible. I want to give the country the assurance that the Government has not abandoned the levy programme.&rdquo;</p> <p>The CDF was initiated in 1974 under the Bauxite Production and Levy Act. The proceeds from the bauxite production levy were supposed to be directed towards the CDF.</p>