13 AUGUST 2013Metalbulletin.com
Jamaica's bauxite, alumina fate reliant on energy sources
Edited by : AL CIRCLE
1 min read
A reliance on expensive, imported energy has temporarily shuttered Jamaica’s bauxite alumina industry. But foreign operators who are working there hope to slash costs and kick-start production once more.
Both United Co Rusal and Alcoa are looking at alternatives to the costly oil they are forced to import to provide energy to power their operations in the Caribbean country. Their options are coal and natural gas. Coal requires huge capex for infrastructure but has lower cash costs, while gas has lower capex but higher cash costs. In the interim, around 10 million barrels of oil equivalent is imported annually by Jamaica’s bauxite and alumina industry, the government estimates. “Energy is the main problem of our entire mining sector,” told Phillip Paulwell, the country’s minister of science, technology, energy and mining. Closures Years of well-intentioned efforts by the government to save energy, attract investors and liberalise the country’s energy distribution grid have so far failed to provide the solution to Jamaica’s energy crisis that aluminium companies are looking for. That energy crisis, compounded by the demand-crimping economic downturn is affecting the alumina industry.
Both United Co Rusal and Alcoa are looking at alternatives to the costly oil they are forced to import to provide energy to power their operations in the Caribbean country. Their options are coal and natural gas. Coal requires huge capex for infrastructure but has lower cash costs, while gas has lower capex but higher cash costs. In the interim, around 10 million barrels of oil equivalent is imported annually by Jamaica’s bauxite and alumina industry, the government estimates. “Energy is the main problem of our entire mining sector,” told Phillip Paulwell, the country’s minister of science, technology, energy and mining. Closures Years of well-intentioned efforts by the government to save energy, attract investors and liberalise the country’s energy distribution grid have so far failed to provide the solution to Jamaica’s energy crisis that aluminium companies are looking for. That energy crisis, compounded by the demand-crimping economic downturn is affecting the alumina industry.
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