MAJOR INITIATIVES UNDERTAKEN TO DEVELOP MINING SECTOR

BY: LAWAYNE JEFFERSON

Minister of Energy and Mining, Hon. James Robertson, speaks with school children attending the Open Day of the Mines and Geology Division of the Ministry of Energy and Mining in November. The Open Day commemorated the 150th Anniversary of the Division. The children learnt about numerous matters relating to geology and mining.

Major initiatives were undertaken by the Ministry of Energy and Mining during 2009, to  enhance the sector, including completion of a final draft of Jamaica’s first National Minerals Policy; the staging of  another successful National Minerals Week;  and the establishment of a Bauxite/Alumina Sector Task Force to make recommendations for the re-development of the bauxite sector.

An agreement was also finalised between the Government  and Lydford Mining Company, to develop the Reynolds Pier, St. Ann,  as a multi-purpose pier.

The deep water pier, which was toured by Minister of Energy and Mining, Hon. James Robertson, was constructed by the Reynolds Jamaica Mines Limited for the export of bauxite. The facility is special, because of its deep water port,  the seven-mile overland conveyor which allows mined materials to a 80,000 tonnes holding shed, eliminating the need for expensive and hazardous road transportation.

Such a joint venture is mutually beneficial to both Lydford Mining Company and the Government and people of Jamaica, due to the resulting spin-off economic activity. Being the only such facility in the northern section of the island, the Reynolds Pier re-habilitation is critical to support non-metallic mining ventures in neighbouring parishes, particularly in light of the downturn in the bauxite and alumina sector.

Creating Sector Framework and Policy

The Ministry of Energy and Mining seeks to create a framework for the development of the mining sector, and its capacity to contribute to export income and rural development. The Lydford Mining venture is a tangible example of this, and the Draft National Minerals Policy, which came into being in 2009, has documented the necessary framework.

Speaking on the policy, Minister Robertson said “primary industrial activities generate limited social and economic benefits. I am therefore pleased that the Policy places significant emphasis on the production of value-added mineral products, which create far greater revenues for the country, increased profits and more and better paying jobs.”

 “It is also clear that poorly regulated or unregulated mineral exploitation activities are very serious potential threats as they may cause large-scale environmental, social and economic harm. I am therefore pleased to present Jamaica’s first National Minerals Policy, which sets out a comprehensive and unified approach to develop the country’s minerals industry and to ensure that the Jamaican people are the major beneficiaries,” he added.

Mr. Robertson explained that the policy  constituted an important aspect of the Government’s determination to develop a broad-based industry within the construct of sustainability; and  to signal its aim to create a modern and diversified minerals industry.  He said it also presented the Government’s vision, and established the official framework and facilitating structures to guide the effective management and continued transformation of the industry and to ensure its harmonious co-existence with competing interests in the wider economy.

Ms. Marilyn Delisser of the Mines and Geology Division explaining the mining process to school children and their teacher at an exhibition held during National Minerals Week.

Jamaica’s commercially exploitable minerals include a wide variety of limestones, hard volcanic rocks, bauxite, marble, base and precious metals, sand and gravel.

Despite the downturn in the bauxite sector, initiatives such as the policy framework and proactive business strategies employed by joint ventures between the Government and private entities, saw enterprises like Jamalco and the Noranda Jamaica Partners Limited progressing.

Noranda Jamaica Partners Limited, which operates in Discovery Bay and is the former St. Ann Bauxite Company, moved from operating at 65 per cent  capacity in the last quarter of 2008 to 100 per cent  capacity in the third quarter of 2009. They have repositioned themselves to grow, based on the subsequent emergence of new marketing opportunities in the bauxite and alumina sector.  

Prime Minister the Hon. Bruce Golding has congratulated the staff and management of Jamalco for the teamwork that allowed the company to maintain viability and break production records during a global economic downturn.

President of Alcoa, Latin America and the Caribbean, Frank Feder, said Jamalco’s safety record  compared to the global Alcoa system, and its performance had given him the immense confidence to sit with the leadership of Alcoa in New York and more importantly, to sit with Prime Minister Golding and talk about the future of Jamalco.

Managing Director of Jamalco, Jerome Maxwell, said that the current fourth place  safety ranking seemed impossible two years ago, when the company was at the bottom of the rankings. The team’s goal now is to become even better, he stated. The company achieved the landmark safety record of 5 million man hours without a work day being lost, the highest in its 50-year history.

Executive Vice President for Alcoa’s Global Primary Products (GPP), Bernt Reitan,   expressed confidence in the way that Jamalco handled its mining operations in 2009.

“Global primary products have had challenges. We have however fared far better than most, because we have never lost our business fundamentals,” Mr. Reitan told stakeholders at the official commissioning of the new conveyor system at Jamalco’s Mount Oliphant operation, in August.

State Minister for Energy and Mining, Hon. Laurence Broderick (left), presents Lands Manager at Alpart, Dr. Frank Ross, with the Minister's Cup for the best safety record in mining operations. Dr. Ross accepted the award on behalf of Alpart, during the National Minerals Industry Safety Awards Banquet, held recently at the Courtleigh Hotel and Suites, in Kingston.

He added that every Alcoa location where strategic initiatives have been implemented, will be more competitive when the current economic crisis ends.

Speaking at the national Minerals Industry Safety Awards Banquet in November at the Courtleigh Hotel in Kingston, Minister of State in the Ministry of Energy and Mining, Hon. Laurie Broderick said that despite the downturn in the bauxite sector, there were opportunities for Jamaicans, as the Government sought new markets and forged new partnerships for the time when the industry rebounds.

“As we look down the road, before us is an industry that saw alumina plummeting to a low of some US$1,200 per tonne; we saw it creeping back to US$2,000, and we know it came from a high of US$3,000. If we are a thinking people, we will understand that we are not far from the horizon," he said.

The Draft National Minerals policy, one of the critical driving forces behind development of the sector, was one of the most widely consulted for the Government. Its finalisation followed extensive islandwide public and private sector consultations to discuss a very wide range of issues, including mineral resources, protection and business opportunities across Jamaica and the implications for communities.

More importantly citizens were afforded the opportunity to participate in the formulation of the policy, to have their concerns heard and learn more about opportunities in mining and non metallic minerals. The Draft Policy also promotes integrated sector support through training of more skilled labour to work in the industry.  One tenet of the Draft Policy is increased public education and awareness about the sector and this dovetailed into the second successful staging of National Minerals Week in February 2009.

During the week of celebrations, the significance of efficiently managing mineral resources within the context of sustainability, wealth, employment generation and investment viability were highlighted. Significant awareness was created and numerous investment enquiries received.  Activities for the week included a trade show and exhibition, an investment seminar, field trips to mineral mining operations, roundtable discussions and Town Hall meetings in communities across Jamaica.