Jamaica Parliament approves budgetary support of J$268 million for JBI
The Lower House of the Jamaica Parliament, also known as the House of Representatives has sanctioned the amount of J$268.48 million to be withdrawn from the Capital Development Fund (CDF), to contribute budgetary support to the Jamaica Bauxite Institute (JBI) for FY 2022-23.
On 5th July 2022, Dr Nigel Clarke, the Minister of Finance and the Public Service, said: “The JBI was established by the Government in 1975 as a regulatory planning and development agency, to manage the sovereign aspects of the Government’s participation in the bauxite alumina industry.”
He further highlighted that the JBI is responsible for observing and studying the alumina sector and advising the Government on matters concerning the industry both domestic and international markets.
However, Dr Clarke reported that the organisation is primarily funded by levies collected from the bauxite industry through the Capital Development Fund (CDF).
The Minister added, “The JBI’s primary operations are not revenue-generated activities. However, over the years the JBI has expanded its operations to include the provision of laboratory services on a commercial basis to generate some revenue.”
“The JBI continues to contribute to the bauxite and alumina industry in Jamaica through research and continued monitoring, which encourages bauxite companies to remain compliant with applicable laws and regulations.”
As part of its regulatory responsibilities during the fiscal year 2021-22, the JBI participated in eight environmental performance meetings and analyzed 337 commercial samples, including water samples from the area around the bauxite plant and residue disposal areas.
In addition, JBI conducted simulation tests on samples of bauxite from JISCO's mines to assess whether it could be processed, and to test the effectiveness of chemical additives.
“The results of these are expected to assist JISCO Alpart in restarting refinery operations following their closure in 2019,” Dr Clarke said.
Approximately 73% (J$268.48 million) of the JBI's J$367 million operating expenditures will be covered by the CDF for the fiscal year 2022/23, according to him and the JBI has been granted budgetary support totalling $1.2 billion from the CDF during the five years 2017-18 to 2021-22, while the balance in the CDF as at the end of the 2021-22 fiscal year was J$3.8 billion, which is sufficient to bestow the support required for the JBI in 2022-23.
“This amount, $268.48 million, was also included in the approved Jamaica Public Bodies Estimates of Revenue Expenditure for the year ending March 2023. We are committed to only withdraw from the CDF, in line with the Bauxite Production Levy Act to facilitate the budgetary support of the JBI,” Dr Clarke concluded by saying.
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