Jamaica government in talks with industry leaders over global bauxite price fall

According to a recent report, the Jamaica government is in talks with stakeholders in the vital bauxite industry over falling prices of bauxite/alumina globally. The news came after Mining Minister Robert Montague officially reported about this.

He said meetings have already been held with representatives of some of the eminent industry players, such as West Indies Alumina Company (Windalco), Clarendon Alumina Company, and Noranda Bauxite Company, in a bid to reduce fears of any possible fallout and provide requisite support at protecting the welfare of workers and the livelihood of communities who depend on the bauxite/alumina industry.

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

Meanwhile, opposition spokesman on mining, Phillip Paulwell, warned of the possible closure of bauxite plants, as aluminium prices are already showing signs of global economic downturn.

Paulwell said aluminium prices have fallen from an estimated US$2,200 per tonne to US$1,700 per tonne, which in his opinion is approaching the benchmark of 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 while adding that alumina prices have moved from US$500 per tonne to US$290.

Paulwell is urging the government to be more proactive and ensure local jobs security.