Happy officials from new owners of Alpart, JISCO and former owners Russian company UC Rusal, along with Jamaica government officials and parliamentarians immediately following symbolic ribbon cutting at the Alpart refinery in Nain, last Thursday. The refinery is to be rehabilitated over the next six months with alumina refining set to start after that. Worker recruitment is set to start this week.<strong></strong>
November 26, 2016
New day for Alpart
Recruitment for refinery set to begin this week
NAIN, St Elizabeth — Hope of better days for the economies of south-east St Elizabeth and south Manchester was boosted last week following another big step towards the resumption of alumina production at the Alpart refinery here.
Officials of Alpart’s new owners, Chinese company Jiquan Iron and Steel (JISCO), and previous owners, Russia’s UC Rusal, as well Jamaica Government officials took part in a ribbon-cutting exercise and baton changeover to signal a “new beginning” and a “new era”.
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The plan is for the new Chinese owners to first rehabilitate and refurbish the 47-year-old plant over a period of six months before resuming alumina production next year.
Expansion mode will follow in 2018, with alumina production being boosted to two million tonnes annually from a previous peak of 1.65 million tonnes.
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Mining Minister Mike Henry said recruitment of workers at Alpart was scheduled to begin this week, and that by the time the plant “starts up [next year] approximately 800 to 1,000 jobs will be made available”.
Henry said that employment will be on a 70/30 ratio, meaning that for every 30 Chinese workers, there will be 70 Jamaican workers.
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Signing of the agreement for the sale of the ageing Alpart plant for US$299 million to JISCO was done in China in July. The refinery has been mothballed since early 2009 – shut down in the aftermath of a global financial meltdown, with a nosedive in metal prices even as energy costs stayed high at that time.
Reports say that in the years to come, JISCO will be eyeing the possibility of an aluminium smelter in the Nain area and an industrial zone involving “value-added” products such as appliances, which require significant inputs of aluminium and steel. Aluminium is a light metal smelted from alumina, which is white granular material processed from bauxite ore – plentiful in red soils found in central Jamaica parishes such as St Elizabeth, Manchester, Clarendon, St Catherine and St Ann.
Alongside modernisation and expansion of the Alpart plant and the proposed industrial project will be major expansion of Port Kaiser, from whence alumina was exported up to 2009. Bauxite ore is currently exported from that port.
A modernised Port Kaiser would also become an export point for value-added products from the proposed industrial zone.
Former Mining, Energy and Technology Minister Phillip Paulwell, who is currently Opposition spokesman for that portfolio, told journalists that with JISCO having “easy access to Caricom and North American markets”, St Elizabeth “could be the centre of industrial activity in Jamaica in the future”.
During his formal presentation, Henry made only passing reference to ongoing debate regarding energy sources for Alpart. Energy Minister Andrew Wheatley was absent.
However, while emphasising that questions would be best addressed to Wheatley, Henry told journalists that when alumina production resumes next year, it will be powered by “existing” heavy fuel (crude), as was used prior to the closure of the refinery in 2009.
He refused to be drawn regarding controversy surrounding a proposed coal-fired plant for a reopened and expanded Alpart, pointing out that the expanded “phase” of development at Alpart, including additional investment in energy, was slated for 2018.
“2018 will require more energy… but that’s down the road,” he said.
He did point out that on a global scale coal is part of the “energy mix”.
“As to how you use it relates to climate change and emissions and how you measure emissions. Right now the cars in our country may be emitting more than a coal plant … that’s the analysis you have to do…” he said.
Henry said protection of the environment would take priority.
“At all times the safety and health of the people will be paramount to my decisions,” he said.
Paulwell agreed with the decision to resume alumina production as quickly as possible using heavy fuel, given the current low cost of oil and the opportunity for profitability.
Henry said the Government would ensure protection of landowners under the new regime at Alpart, with relocated individuals receiving their registered land titles swiftly. The legal ownership of land has been a sore point in bauxite mining areas over many years.
“Let me urge the new owners of Alpart to spare no effort in ensuring that relocated persons receive their symbol of tenure (land title) within the shortest possible time,” the mining minister said.
Speaking through an interpreter, Chairman of JISCO Chen Chunming pledged to abide by Jamaican laws “in doing business” and to uphold the interests of the country. He described JISCO as a modern industrial company with state-of-the-art capacity. “No matter how difficult it is, JISCO will conquer and ventures will surely survive and flourish,” he said.
China’s Ambassador to Jamaica Niu Qingbao described the Alpart deal as a landmark in Jamaica/China relations. “This is a big deal not only for the company, not only for the community, but for China/Jamaica relationship as well…,” the ambassador said.
— Garfield Myers
Niu Qingbao, ambassador of China to Jamaica, at the opening ceremony at Alpart<strong></strong>
Mining Minister Mike Henry at Alpart<strong></strong>
Chen Chunming, chairman, JISCO at the Alpart ceremony<strong></strong>
JISCO and UC Rusal officials, as well as former Mining Minister Phillip Paulwell and current Minister Mike Henry, cut the ribbon at Alpart last week.<strong></strong>
Alexey Gordymov of UC Rusal Alpart (left) hands over the baton to Chen Chumning chairman, JISCO, at Alpart ceremony. Minister of Mining Mike Henry (right) looks on.<strong></strong>
