Coal could fuel bauxite sector to bright future - Experts say restructuring could guarantee big export buck

 John Myers Jr, Gleaner Writer

Local bauxite industry experts have expressed confidence in the revival of the sector, but say this will hinge heavily on the successful implementation of plans for the installation of modern coal-fired energy solutions to power refineries.

Speaking at a Gleaner Editors' Forum on Tuesday, Jamaica Bauxite Institute Director Dennis Morrison said it was not too late to rebuild a competitive and efficient bauxite/alumina industry that places greater emphasis on alumina production.

He said further that the installation of efficient, low-cost energy solutions would move Jamaica from being just a 'swing' location, where bauxite mining is the primary product of the operations, to one which involves the production of high-value products.

This comes on the back of optimism expressed about the prospects of Jamaica's bauxite/alumina industry by Mining Minister Phillip Paulwell during the 2014-2015 Sectoral Debate in Parliament last week. According to Paulwell, "Despite the cyclical nature of this competitive industry, Jamaica is positioned to do well."

He said, "Our first-mover advantage in infrastructure and quantity of reserves will make us a critical player for decades to come. Jamaica's bauxite future is assured because the demand for bauxite in the global market is growing, as some countries are restricting bauxite export."

He said further that the Government, going forward, as a matter of policy, would not be granting any new agreements for the export of raw bauxite without specific conditions.

This optimism was shared also by Dr Carlton Davis, special envoy in the Office of the Prime Minister with responsibility for consultations in the bauxite/alumina and energy sectors.

ANNUAL US$1B EARNING POTENTIAL

"If we can get (the refinery at) Ewarton converted to coal, Jamalco to be converted to coal, and if we can get somebody to invest in a coal facility at Alpart, those three would guarantee Jamaica a little over US$1 billion of export earnings per year," explained Davis, who has written several books on the industry.

"Jamalco and Ewarton are both looking for build-own-operate investors for producing electricity and, hopefully, export some of the electricity to the (national) grid," Davis said at the forum held at The Gleaner's headquarters in Kingston.

"That is where the future is," he declared. "And why I am so passionate about it is that, frankly, even with the logistics hub, I see those things, if they come off, as a build-up, but I don't see them having the big-bang effect that those three plants going can have just now."

Morrison argued that the revival of the bauxite/alumina industry was particularly attractive since a higher percentage of revenues are retained in the local economy, when compared with the island's other major industries, such as tourism.