MINING JAMAICA
Heavily reliant on foreign investors, the Jamaican government has been slow to offer support to the high-potential mining sector—local banks have barely budged in this regard.
We have had significant investments that have taken place in the last two years. The first is an investment by the American group New Day in Noranda. New Day brought Noranda out of bankruptcy, maintained the operations, and is presently moving those operations back to peak levels. The second investment was by the Chinese firm Jiuquan Iron and Steel Company (JISCO) in Alpart in St. Elizabeth. Alpart had previously been closed for almost nine years. It is currently producing alumina, and the first shipment was sent in December 2017. Restarting the plant required an investment of in excess of USD300 million. Additionally, JISCO has substantial plans for major investments. It expects to spend USD3 billion in the next three years.
JBI is a Limited Liability Company owned by the government. We are not a straight civil service agency. In the past, all of the bauxite and alumina companies here were traditional operators with technical R&D facilities that provided support for their subsidiaries. Currently, the companies that operate here do not have this same support. JBI sees these types of services as its responsibility. We see ourselves as an organization that supports the entire community. We have developed and earned a great deal of respect from the industry, and we will only strengthen this position as we bring the industry back to Jamaica in a powerful way. The government is also helping to incentivize bauxite and alumina development within the private sector. There is the Bauxite and Alumina Mining Act, and there are new legislative structures looking at special economic zones that will take over where bauxite and alumina mining programs stop.
Energy makes up approximately 30% of the cost of alumina production. When you have a generating plant that is small and old, you are faced with many challenges and the need to modernize equipment. Jamalco's power plant is fitted with steam boilers and turbines, using heavy fuel oil to produce the power and steam for operating the alumina refinery. Over USD100 million per year is spent by the refinery for purchasing of heavy fuel oil for operating the facility. Therefore, when 30% of the cost of production is energy and the oil price goes crazy, you can see the effect it has on production. Jamalco has entered into an agreement with New Fortress Energy (NFE) to build a natural-gas-fired combined heat and power plant. NFE is building a marine gas terminal and offshore storage facility. A pipeline will transport natural gas into the plant at Jamalco, which then generates energy at a competitive price, supplying power to the JPS grid and steam to Jamalco.
Lydford Mining has the ability to produce 2 million tons of construction-grade limestone per annum and around 250,000 tons of chemical and industrial grades of limestone. Then, we make milled products, which go into plastics, paints, and various other industries. Some 80% of our production is used in the US while the remaining 20% in Jamaica. We started supplying limestone for construction and industry and moved into limestone for plastics and paints. We have also moved into animal feed products and currently supply chicken farmers and fertilizer additives with screened and sized limestone. There are over 300 different uses for limestone and we have only tapped into seven. In 2018, we are considering entering into the pharmaceutical sector with our limestone products. However, we need additional funding. All foreign investors would like to keep plants in their country, and foreign capital as opposed to local lending is key in the mining industry.
MINING JAMAICA
TABLE OF CONTENTS
Interview
Most Honourable Andrew Holness, Prime Minister, Jamaica
TBY talks to the Most Honourable Andrew Holness, Prime Minister of Jamaica, on efforts to foster sustainable and inclusive growth, the main challenges ahead for the nation, and its key successes in improving the business environment.
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Diane Edwards, President, Trade & Investment Jamaica (JAMPRO)
TBY talks to Diane Edwards, President of Trade & Investment Jamaica (JAMPRO), on making investments throughout the whole value chain, becoming a regional distribution hub, and boosting niche agricultural output.
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Courtney O. Campbell, President & CEO, Victoria Mutual
TBY talks to Courtney O. Campbell, President & CEO of Victoria Mutual, on the origins of financial inclusion in Jamaica, helping people get a start on their property journey, and assisting young businesses to exploit a positive business environment.
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Raymond Walker, Founder, Chairman & CEO , Caribbean Assurance Brokers Ltd. (CAB)
TBY talks to Raymond Walker, Founder, Chairman & CEO of Caribbean Assurance Brokers Ltd. (CAB), on fighting for its clients, using environmentally sound methods to drive down costs, and continuously driving innovation.
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Emanuel DaRosa,, President & CEO, Jamaica Public Services (JPS)
TBY talks to Emanuel DaRosa, President & CEO of Jamaica Public Services (JPS), on pursuing common goals in the best possible way, utilizing Jamaica's most abundant natural resources, and satisfying half of Jamaica's energy needs through renewables.
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Winston Watson, Group General Manager, Petroleum Corporation of Jamaica (PCJ)
TBY talks to Winston Watson, Group General Manager of Petroleum Corporation of Jamaica (PCJ), on keeping a hand in both green and black energy, helping the government reach its 2030 Energy Vision targets, and educating people on the importance of conservation.
read articleFocus: LNG Investments
Light My Fire Jamaica
The Jamaican government is pushing private investment in liquefied natural gas (LNG) to provide cheaper and cleaner energy to households and businesses. Through partnerships with local and international companies, New Fortress Energy is leading the way to ignite this sector.
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Gordon Shirley, President & CEO, Port Authority of Jamaica (PAJ)
TBY talks to Gordon Shirley, President & CEO of the Port Authority of Jamaica (PAJ), on the country's developing role as a logistics hub, attracting more cruise ships, and his outlook for the economy at large.
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Fritz Pinnock, President, Caribbean Maritime University
TBY talks to Fritz Pinnock, President of Caribbean Maritime University, on capitalizing on the rising power of the global south, customizing goods before they reach the final consumer, and leveraging Jamaica's geostrategic location to create added value.
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Winston Adams, JP, Executive Chairman, University of the Commonwealth Caribbean (UCC)
TBY talks to Winston Adams, JP, Executive Chairman of the University of the Commonwealth Caribbean (UCC), on the university's illustrious history, its upcoming strategies, and Caribbean Knowledge City.
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Michael Williams, Acting Executive Director , Mona School of Business and Management
TBY talks to Michael Williams, Acting Executive Director of Mona School of Business and Management, on maintaining quality across its programs, its achievements in the Caribbean, and the school's research-based approach.
read articleFocus: Downtown Kingston Revitalization
Drinking from the Fountain of Youth
Although the subject of much talk, downtown Kingston has been relatively neglected for many years while surrounding areas of the city attracted more real estate developments. A series of public and private investments indicate that the trend is finally reversing.
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Timothée F. Delebarre, Country Manager, VINCI Construction Grands Projets (VCGP)
TBY talks to Timothée F. Delebarre, Country Manager of VINCI Construction Grands Projets (VCGP), on diversifying their business lines, expanding Kingston's Port, and developing innovative financing mechanisms.
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Dittie Guise, General Manager, Montego Bay Convention Centre (MBCC)
TBY talks to the late Dittie Guise, General Manager of Montego Bay Convention Centre (MBCC), on marketing the convention center, creating an integrated tourist experience, and preparing for more events and visitors.
read articleFocus: Linking Tourism
Lifting All Boats in the Rising Tide
Although significantly contributing to the economy, tourism in Jamaica suffers from an inadequate level of linkage with other sectors. The government, in partnership with private actors, is launching a number of initiatives to ensure that international tourists meet local businesses.
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Natalie St. Louis, Founder, CEO & Managing Director, Strategic Konnections & Management Services Limited
TBY talks to Natalie St. Louis, Founder, CEO & Managing Director of Strategic Konnections & Management Services Limited, on working with businesses to further their goals, the importance of engaging with consultants, and goals for the coming year.
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