Jamaica's bauxite export almost halves in H1 2017; H2 outlook not encouraging either

Jamaica is yet to get its due from its bauxite mining industry. The country with a sizeable bauxite reserve amounting to 2 billion tonnes ranks fifth after Guinea, Australia, Brazil, and Vietnam as one of the world’s top countries with rich bauxite reserves. As per 2014 U.S. Geological Survey data, Jamaica’s bauxite production stands at only 9.8 million tonne; which means the country remains largely untapped as far as its mining potential is concerned. No wonder, its bauxite export growth also remains stunted even after five decades of it becoming a mainstream bauxite producer.

During the initial six months of the current calendar year, Jamaica exported 1.54 million tonnes of bauxite, according to the global export-import data based on a number of macroeconomic factors. The figure is in stark contrast with a year-ago data, when Jamaica managed to export 2.29 million tonnes of bauxite (H1 2016). In H2 2017, the country is estimated to export 1.43 million tonnes of bauxite, down from 1.84 million tonnes in the corresponding period previous year.

The revenue contribution of Jamaica’s bauxite export to the country’s GDP has also declined year-over-year. In H1 2016, Jamaica exported bauxite worth US$59 million; in H1 2017, the value has dropped significantly to US$38.5 million. Similarly, H2 2017 bauxite export value is also projected to decline from the same period previous year. It is estimated to reach US$37 million down from US$48.5 million in H2 2016.

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Bauxite mining and export in Jamaica is mired in a number of socio-economic issues. The sooner they get resolved the better. Lester “Mike” Henry, Jamaica’s Transport and Minister said in January this year that it is high time Jamaica spurred its mining sector and exports at the same time because that could rake in increased foreign exchange earnings for the country.