Windalco's July 1 opening still on track

... UC Rusal confident of meeting timeline despite incomplete talks with Government

UC RUSAL, the Russian firm that controls a big chunk of Jamaica's bauxite production, is insisting that the planned July 1 reopening of the Windalco Kirkvine bauxite plant in Williamsfield, Manchester, remains on schedule.

The assurance comes even as executives of the company and the Government continue to attempt to hammer out a deal

Igor Dorofeev, UC Rusal executive, recently told The Gleaner that the start-up date will be met even as the talks continue.

According to Dorofeev, while he cannot comment on the ongoing negotiations with the Government, the talks have been favourable.

The firm has reportedly requested several concessions as it prepares to shell out US$9.5 million (J$817m) to reopen the plan which has been closed for two years.

Hopes for employment

Industry sources have claimed that UC Rusal is requesting a two-year cancellation of the bauxite levy and the purchase of the Government's 45 per cent stake in the Jamalco refinery in Clarendon, among other concessions.

But Dorofeev said even with the deal not settled, the company is working on its reopening plan and expects the employment level to return to the nearly 2,000 employees before it suspended operations in 2009.

The Kirkvine works plant was closed after world alumina prices tanked.

UC Rusal, in a move to cut costs, as its debts ballooned, reduced production at several of its facilities worldwide.

The shutdown was expected initially to have lasted a year.

But UC Rusal now says market conditions have improved sufficiently for it to get back into the game.

"The company has carefully reviewed ways of optimising the facility's structure and production process, reducing cash-operating costs and improving the efficiency of the Windalco-Kirkvine works plant's operations," said UC Rusal.

Energy source options

When the plant is fully operational, it will initially produce 252 tonnes of alumina, less than half of 600,000 tonnes it is capable of producing.

Citing the high cost of energy as one of its major production problems, Dorofeev said Windalco is currently looking at several energy source options, including biogas and coal.

According to Dorofeev, although the company is currently testing a pilot project in biogas energy at its Ewarton plant, if the Government's announced liquefied natural gas project comes on stream, this will be used as its energy source.

Dorofeev was speaking with The Gleaner after the signing of an agreement at the plant with five students who were awarded full scholarships to study in Russia for five years.

The students are Warrem Feurtado, 17, of Portmore Community College; Jason Hemmings, 18, of the University of Technology; Jodian Campbell, 17, of McGrath High School; Rommone Facey, 17, of Dinthill High School; and Dwayne Wellington, 18, of Munro College.