Clarendon Alumina Partners to lose $7.6b even as partners push efficiency drive at Jamalco

Clarendon Alumina Partners (CAP), which holds a stake in Jamalco alumina refinery, expects to bleed losses totalling US$46 million (J$7.6 billion) for fiscal year ending 2027, according to government public bodies documents.

“CAP’s plans and forecasts continue to reflect sustained operating losses, as alumina revenues remain below production and operations costs,” stated the company in its filing with the Government in the Jamaica Public Bodies. “CAP projects a net loss of US$45.9 million.”

The losses hit despite an ambitious capital investment programme running from 2025 to 2027, led by Jamalco’s managing partner Century Aluminum, a US company that holds 55 per cent of Jamalco, with CAP holding the remaining 45 per cent. The investment, part of an initiative to lower energy costs, aims to rank the refinery among the world’s more competitive producers. Century acquired its majority stake in Jamalco from the financially distressed Noble Group in May 2023 for US$1.

Power costs sit at the heart of the turnaround plan. The plant consumes roughly 400,000 pounds of steam per hour, making electricity one of the biggest cost burdens the operation carries.

CAP forecasts revenue in local currency of $31.8 billion, with expenses of $36.2 billion during the year, along with additional interest expenses of $3.2 billion.

The losses also press urgency onto incorporation plans that have stalled for years. Because Jamalco operates as a non-incorporated joint venture, it holds no legal standing as an entity which makes it difficult to secure credit from overseas lenders.

CAP plans to spend US$22 million on capital expenditure on the plant this year, compared to US$32.1 million a year earlier.

“While efforts will continue to optimise the operations of the Jamalco refinery over the medium term, CAP will continue to work with its joint-venture partner to advance the incorporation of Jamalco, with the objective of attracting private investment, while insulating the Government’s fiscal operations from ongoing operational and financial risks,” stated CAP in its filing to the Government.

CAP recorded a net loss of US$27.2 million in 2025, and US$47.7 million in 2024.

business@gleanerjm.com