PIOJ denies production slowdown in Alpart alumina refinery despite the news of shutdown doing rounds

The Planning Institute of Jamaica (PIOJ) said yesterday that it was not expecting a decline in alumina production in the near term despite proposed cut backs in the sector due to lower price of alumina. James Stewart, Senior Director at the PIOJ said that while the Institute is in discussion with JISCO regarding production, there is no sign of a production slowdown in Alpart.

“There are some issues that are still under negotiations. No final decision has been made yet as to the cutback. Alpart still records increases each month, as we look at the data. So as of now, there has been no decline, particularly for July to September…..” PIOJ confirmed.

The statement came after the leadership of the People's National Party's (PNP) Region Five told Comrades at a Regional Executive Council (REC) meeting on August 25 that they should expect a closure of the bauxite/alumina JISCO Alpart plant in Nain soon.

Mikael Phillips, Member of Parliament for Manchester North Western also indicated a temporary closure of JISCO Alpart.

The expected closure is attributed to losses due to lower alumina prices and the urgent need to modernize the 50-year-old Alpart plant, whose machineries are getting absolutely inefficient.

Phillips said that while “we haven't heard anything definitive from the Government or from JISCO themselves” a recent meeting between the PNP leadership and JISCO Alpart seemed to indicate a halt on alumina production soon.

According to an unidentified source from the plant, raw materials for alumina refining were running low and no new orders had been made by the plant's management. Caustic soda supply was down to 35 per cent and no fresh orders for caustic soda were made.

However, Mining Minister Robert Montague said the Government, which had a meeting with JISCO officials last Thursday, was still awaiting a word from the company.

JISCO employs 1,000 permanent staff and a closure would have an impact on the economy. JISCO reopened the plant in 2017 because of the relatively high international price of alumina at the time, which in excess of US$500 per tonne. But the price has since fallen to below US$300/t.