Jamaica is a global producer of bauxite, a critical material used to produce aluminum. The Caribbean island, most well-known globally for its vibrant tourism industry, has exploited this “red dirt” for decades. While the industry remains profitable, there has been significant push-back recently, including a recent landmark Supreme Court ruling against a new mining project.
The
importance of “Red Dirt”
In 2022,
Jamaica’s bauxite production totaled 7,048kt, up 22% from 2021, and the
Caribbean island accounts for 2% of global bauxite production. The major global
producers are Australia, China, Guinea, Brazil, and India; Jamaica hovers around
the 10th place according to Statista, though other outlets put Jamaica in the
seventh spot.
The top
mining projects on the island are the St. Ann Bauxite Mine (owned by the
government of Jamaica and New Day Aluminium), Windalco Mine (owned by United
Company Rusal), and Alpart Project (owned by Jiuquan Iron and Steel: JISCO). In
late 2021, United Company RUSAL (UC RUSAL) began making payments towards the
US$35 million Bauxite Production Levy owed for the April 2018 to September 2021
period. In early June 2023, Mining Minister Floyd Green met with JISCO Alpart
“to discuss the company’s plans for the reopening and resumption of plant
operations,” which has been stalled since 2019.
Families
forced to resettle due to bauxite mining operations are compensated, though if
appropriately and sufficiently is debatable. Last April 2022, Minister of
Transport and Mining Audley Shaw remarked that “more than 3,000 certificates of
title are scheduled to be delivered to persons resettled by bauxite mining
companies.” He added that “during 2021, the bauxite companies delivered 116
titles to resettled persons, bringing the total number of titles issued since
2012 to 1,333, with another 119 titles being prepared for transfer.”
One
concern is what will happen with the land after bauxite is mined and mining
companies leave. One potentially fruitful project in this regard is being
implemented under the World Bank-funded Second Rural Economic Development
Initiative (REDI II) and administered by the Jamaica Social Investment Fund
(JSIF). The project aims to “enhance bauxite communities by encouraging the
productive use of mined-out lands for agriculture.” Some 20 farmers are a part
of the first cluster, established in 2017 via REDI’s first phase: they
cultivate vegetable crops sold to hotels and other clients. Approximately 300
greenhouses are expected to be built in mined-out lands across multiple
parishes (repurposed bauxite pits for rainwater harvesting will support the
greenhouses); this ambitious project aims to increase vegetable crop
production. That said, it remains unclear how many greenhouses have been built
so far.
The
fight against bauxite mining in Cockpit Country
The
problems associated with bauxite mining came into the spotlight again due to
plans to mine in Cockpit Country, a rainforest which area crosses Saint
Elizabeth, Saint James, and Trelwany parishes. In 2018, the bauxite mining and
exporting company Noranda Jamaica Bauxite Partners (NORANDA) signed an
agreement with the Jamaican government to mine bauxite: Discovery Bauxite
Operations Limited owns 49% of NORANDA, while Kingston, through Jamaica Bauxite
Mining Limited (a government-owned company with a business enterprise mandate),
controls 51%. The current mining lease on the site began in 2018 and is set to
run for 25 years with an additional renewal term of 25 years.
The
local Maroon population does not want mining in their homeland; there are also
obvious concerns about losing the rainforest’s biodiversity if the mining
occurred. “Cockpit Country sits at the mouth of water aquifers of six major
rivers. Should mining accidents occur here, it could poison and contaminate the
water supply of four parishes, endangering the health of hundreds of thousands
of people,” according to a 2022 report by the Pulitzer Center. A website called
Save Cockpit Country has been created to explain why this mining project is a
bad idea. “There is a clear conflict of interest since the Jamaican government,
home of the environmental regulator (the [Natural Resources Conservation
Authority]), also has a 51% stake in Noranda Jamaica,” stresses the London
Mining Network.
In
January 2023, the Jamaican Supreme Court halted the mining of St. Ann’s Cockpit
Country. This ruling is a significant victory for the local inhabitants and
environmental group; however, it remains unclear whether Noranda or Kingston
officials plan to appeal the verdict or look for another alternative to mine
bauxite from Cockpit Country. For the time being, Cockpit Country’s environment
is safe.
Analysis
In a
December 2022 analysis by the London Mining Network, Jamaica’s bauxite industry
is summarized as follows: “although the bauxite/alumina industry has produced
foreign exchange earnings and a number of jobs, it has always been an
environmental disaster, removing forest cover, disturbing and polluting
waterways, displacing residents, destroying agricultural livelihoods,
compromising air and water quality and thus damaging the health and well-being
of thousands of Jamaicans.” This a generally correct summary of bauxite mining
in Jamaica, and can be applied to other mining projects throughout the Western
Hemisphere (and elsewhere). While mining can be very profitable, foment
development, and create jobs, such projects also tend to be environmental
disasters.
Bauxite
mining, like any other significant industry, is highly politicized. At the time
of writing, the Jamaican Parliament, specifically the House of Representatives,
is debating the present and future of the bauxite and alumina company Jamalco.
In early June, the Member of Parliament for Kingston and Port Royal Phillip Paulwell
questioned Minister of Finance Dr. Nigel Clarke on the Parliament’s floor about
“why the government not taken the opportunity of the recent sale of the
majority stake in Jamalco to move it from an income tax regime to a levy
regime, which would allow the country to earn more from the operations of the
company,” among other issues.
Jamalco’s
powerhouse in Hayes, Clarendon, was extensively damaged by fire in August 2021.
Jamalco mines bauxite and refines it into alumina, which is exported from its Rocky
Point Port, explained the Jamaican Ministry of Transport and Mining at the
time; it is a joint venture between General Alumina Jamaica Limited (a member
of the Noble Group) and Clarendon Alumina Production Limited, a state-owned
company. The company’s powerhouse, when operational, produced power, compressed
air, and steam for refining activities. The fire resulted in the facility’s
closure and production loss from September 2021 until July 2022. The South
Carolina-based Century Aluminium Company is the new majority holder. According
to Minister Clarke, Century wants to restore the plant and “go a little bit
further to put Jamalco in a position that it can be in the upper-half top two
quartiles in terms of efficiency for the production of alumina.” Jamalco
employs 900 workers, according to Century’s website.
Besides
tourism, Jamaica’s top industries are agriculture, fishing, forestry, and
manufacturing. According to the World Bank, “real GDP growth is expected to
average only 1.9 percent between 2023-24, driven by continued recovery in the
tourism sector and increased mining and quarrying activities.” While mining may
not be an industry that tourists associate with a tropical paradise like
Jamaica, the country has been one of the world’s top bauxite producers for
decades. While the debate continues whether bauxite can be considered a mineral
or a rock, its importance to Jamaica, and the global production of aluminum, is
undeniable. The country even created the Jamaica Bauxite Institute (JBI), a
government-owned entity with a mandate for a business enterprise. Established
in 1975, the JBI is tasked with “monitoring and studying the aluminum industry
and advise the Government of Jamaica on matters pertaining to the
bauxite/alumina industry locally and internationally,” among other objectives.
Having an institute entirely devoted to a mineral (or rock) reflects bauxite’s
importance for the country.
Conclusions
“I want
to assure the country that even as we continue to mine for bauxite, we will pay
even more attention to the environmental issues. We will make sure that we do
what we have to do to protect the environment and that we have proper land
reclamation so that our farmers will still be able to use our land and so on,”
said Minister Shaw in an August 2022 speech during the opening ceremony for the
Jamaica Bauxite Mining Limited (JBM) Pop-Up Museum.
Statements
like those by Minister Shaw demonstrate that bauxite mining is going to
continue in Jamaica for the foreseeable future. However, the Supreme Court’s
January ruling to halt a mining project in Cockpit Country, thereby saving the
local ecosystem and home of the Maroon population, is a significant
achievement. While the “red dirt” is profitable, protecting Jamaica’s ecosystem
is even more critically important.
***Wilder
Alejandro Sánchez is president of Second Floor Strategies, a consulting firm in
Washington, D.C. He is an analyst that monitors defense & security,
geopolitical, and trade issues across the Western Hemisphere, Eastern Europe,
and Central Asia.