Sanctions against Russian aluminium company may lead to revenue losses for Jamaica
In the current fiscal year, the Jamaican Government estimates the value of mining and processing earnings from bauxite and alumina to be $507 million (JMD$77 billion), seven per cent more than the fiscal year 2020-2021. Jamalco is expected to reopen its operations in August 2022.
The US and European sanctions linked to the Russia-Ukraine geopolitical crisis are again eyeing UC Rusal. This Russian aluminium conglomerate owns a major share of local alumina production, Windalco.
Jamaica's mining and quarrying industry contracted by 62.5 per cent last year due to the fire that closed the Jamaica Alumina Company (Jamalco) plant in August 2021. Russian aluminium imports were expected to rebound, but now the US is considering restrictions. Other companies, such as US producer Alcoa, lobby for measures against Russian aluminium, whereas some companies have announced that they will stop buying Russian aluminium.
London Metal Exchange (LME) members are asked whether Russian aluminium should be banned from its exchange.
Rusal produces about six per cent of the world's aluminium. Western sanctions have not targeted aluminium in the aftermath of the Russia-Ukraine geopolitical crisis.
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