Jamalco Refinery, the alumina joint venture between the Jamaican Government and Alcoa, aims to build the island’s first major coal plant in order to lower the cost of alumina production, Mining Minister Phillip Paulwell indicated on Thursday.
The plant will lower the high cost of energy that currently threatens the viability of the bauxite/alumina sector, which earns the third-highest levels of foreign exchange for Jamaica.
Majority owner and managing partner Alcoa has signed a memorandum of understanding (MOU) on the matter with the Government, said Paulwell at his post-Budget presentation press conference.
Ministry’s plans
Paulwell laid out his ministry’s plans to lawmakers on Wednesday.
“For Jamalco, we are going to have an energy solution that is different from what we have now. The Cabinet has signed off and I have signed an MOU with Alcoa for them to pursue a coal option, and they are pursuing a bidding arrangement where they are seeking investors who will establish the plant and will do a take-or-pay contract with them,” he told journalists at the Office of Prime Minister in Kingston on Thursday. “So that is a part of the mix and it is a requirement going forward,” he said.
Tackle high costs
Financial Gleaner