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Real Gross Domestic Product (GDP) for the Mining and Quarrying
sector grew by 1.1 per cent during 2008. This growth resulted in
increased production of alumina and crude bauxite of 1.4 per cent
and 0.8 per cent respectively. Even though there was growth, the
industry was constrained by factors such as:
·
Hurricane Dean and Tropical Storm Gustav;
·
Equipment problems at some alumina refineries; and
·
Plant down time at the
St. Ann’s Bauxite Company.
BAUXITE AND ALUMINA SUB-SECTOR
Total bauxite production amounted to 14,636.1 kilo tonnes compared
with 14,567.7 kilo tonnes in 2007. This increase was as a result
of growth in the production of both crude bauxite and alumina. In
2007, the alumina production trended down due to hurricane Dean
and mechanical problems. This negative impact continued into the
first half of 2008 resulting in a decline in alumina production of
3.2 per cent when compared with the corresponding period in 2007.
However by year end, production increased to 3,995.4 kilo tonnes
or 1.4 per cent from 3,940.6 kilo tonnes in 2007. This increase
was due to an expansion in the capacity utilization rate by 0.7
percentage points to 87.8 per cent. Crude bauxite production also
increased to 4,452.0 kilo tonnes from 4,417.9 kilo tonnes when
compared with 2007. Like alumina, this growth was facilitated by
an expansion in the capacity utilization rate of 0.6 percentage
point to 89.0 per cent. However further growth was restrained by
down time of 10 days and heavy rains in November 2008 which
disrupted mining activities.
Total bauxite exports were 14,718.7 kilo tonnes in 2008, reflects
an increase when compared with 14,476.4 kilo tonnes in 2007. This
increase was due to a 2.6 per cent increase in the bauxite
equivalent of alumina which outweighed the decline registered for
crude bauxite. The decline in the amount of crude bauxite exported
was mainly due to a disruption in the shipment schedule, Tropical
Storm Gustav and mechanical problems.
POLICIES AND PROGRAMMES
In 2008 the Ministry of Energy, Mining and Telecommunications was
split into two - the Ministry of Mining and Telecommunication and
the Ministry of Energy. The Ministry of Mining continued to work
on the draft National Minerals Policy which will be resubmitted to
Cabinet.
The draft National Minerals Policy seeks to manage and develop
Jamaica’s minerals industry. The main goals of the Policy are:
-
An industry that contributes greatly to Jamaica’s development
and manages mineral resources from the pre-mining to post-mining
stages effectively.
-
Re-organizing the mineral industry through increased mineral
usage, production of value added goods and exportation of
minerals and mineral products.
-
Supporting institutions which enable the continued development
of the minerals industry.
A draft plan, Vision 2030 Jamaica, the National Development Plan
was completed and work continued on the Mining and Quarrying
sector action plan. The long-term strategic goals are:
-
An economically viable and globally competitive industry based
on value added products by, ensuring appropriate policy and
regulatory framework, and utilization of modern technology for
the long-term development of the minerals sector;
-
A socially responsible sector, through sustainable mining
communities, harmonious relationships between communities and
mining and quarrying entities and adoption of a holistic
approach to the wellness of industry employees; and
-
Minimum negative environment consequences from mining and
quarrying through effective control of negative environmental
occurrences and adequately rehabilitated mined-out mineral
bearing lands.
·
EXPORT EARNINGS
Total export earnings for 2008 grew by 4.0 per cent to US$1,386.3
million compared to US$1,309.9 million in 2007. This increase in
export earnings was attributed to higher earnings from alumina due
to higher export prices. The growth in earnings was restricted by
the sharp decline in the price of aluminium during the latter half
of the year. The price
Jamaica
received for its aluminium fell by 20.4 per cent in the fourth
quarter when compared with the corresponding period in 2007.
QUARRYING SUB-SECTOR
Four of the main industrial minerals surveyed recorded positive
growth in the performance of output in the mineral industry
sub-sector. These included:
Silica Sand 2.5 per cent to 14,800
tonnes
Gypsum 4.6 per cent to 238.3
tonnes
Pozzolon 8.6 per cent to 124.3
tonnes
Shale 19.0 per cent to
200.3 tonnes
Marble remained unchanged at 120 tonnes. Lower production levels
were recorded for sand, gravel, limestone, marl and fill and clay.
The reduction in clay production was due to the completion of the
construction of the new Residual Disposal Area at JAMALCO where
clay was used as a sealant in 2007. The production of sand and
gravel also declined due to the completion of a major
infrastructure project in Cuba and reduced the demand for it in
Jamaica and the Caribbean.
PROJECTIONS
FOR THE SECTOR
The Mining and Quarrying industry is projected to decline in 2009.
This is as a result of the global economic crisis and associated
contraction in demand. This will result in major cutbacks in
production and temporary closure of some plants. The planned
restriction in output in
Europe
and
North America, which are Jamaica’s main alumina export markets,
accounted for the second and third largest expected reduction in
aluminium production. Alcoa which is a major owner in JAMALCO and
US Rusal (the major owner in ALPART) announced cuts of 15.8 per
cent and 10.5 per cent respectively in aluminium capacity. Hydro
will also cut 12.0 per cent of its total capacity. The St. Ann
Bauxite Company will be affected as its main consumer Gramercy
refinery (USA) will cut its capacity from 1.2 million tonnes per
year to 700,000 tonnes per year.
Source:
Economic & Social Survey Jamaica 2008
Updated
December 2009
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