On Thursday, September 6, Jamaica Government signed a new mining agreements with New Day Aluminium (Jamaica) Limited, which is affiliated to Dada Holdings LLC and acquired Noranda's stake in the St Ann Bauxite Limited in 2016. The agreement secures protection of the Cockpit Country and thousands of jobs while increasing revenue for the country.
Minister of Transport and Mining Robert Montague said during the signing ceremony that the agreements specifies steps to be taken to ensure the Cockpit Country will not be negatively impacted by mining activities.
"The operations will proceed in order to ensure that the natural environment is properly managed for sustainability. We have taken steps to guarantee that the Cockpit Country is protected, even as we seek to exploit its natural resources to the benefit of our economy," he said.
He said that bauxite levy will be abandoned in favour of a profit-sharing scheme where both partners will benefit from any financial recovery through the mining and refining operations.
"We believe that this new arrangement will earn the country more in US dollars compared to the traditional levy system. The Government will earn 171/3 per cent ... before interest, taxes, depreciation or amortisation, or US$1.50 per tonne of dry bauxite shipped, depending on which is greater. The royalty payments of US$50 per dry metric tonne of ore shipped will also remain in effect," he said.
Minister of Finance and the Public Service Dr Nigel Clarke is also optimistic about mining growth in Jamaica and about the signing of the new agreements. He is also positive about the prospect of job creation through bauxite mining and the downstream activities.
Thomas Robb, chief strategy officer, New Day Aluminium Limited said that the company is repaying more than US$18 million in debts left behind by its predecessor and they hope to pay off the entire amount by April 2022.
"I am proud to report that in total and inclusive of the minimum levy ... fees and royalties for bauxite mined through July of 2018, New Day has already paid over US$26 million on account of its bauxite-mining relationship with the Government and has already spent over US$13 million in its investment programme,” he said.
Robb noted that bauxite being a prized mineral resource for Jamaica and works as the economic engine employing thousands of Jamaicans. New Day Aluminium has the capacity to mine 5.2 million tonnes of high-grade bauxite annually and Jamaican Government has partial ownership in the company.
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