By Dennise Williams, Staff Reporter
JAMAICA'S BAUXITE and alumina sector, still a major force in the economy, is now operating in an expanding global market.
The Planning Institute of Jamaica (PIOJ) states that Mining and Quarrying, of which the bauxite and alumina sector is a part, saw its contribution to real Gross Domestic Product (GDP) increase by 1.1 per cent.
Minister of Development Paul Robertson said in September that gross earnings in excess of US$760 million is expected from the bauxite and alumina sector alone, for 2003. He said bauxite output should reach 13.5 million tones while alumina should see a production level of 3.8 million tonnes.
According to the Planning Institute of Jamaica (PIOJ), compared to October 2002, total bauxite production increased by four per cent in October 2003 reflecting a 4.9 per cent increase in crude bauxite production and a 5.5 per cent growth in alumina production.
INCREASED PRODUCTION
For the calendar year to October, total bauxite production increased by 3.6 per cent due mainly to a 5.4 per cent increase in alumina production as crude bauxite output fell by 0.2 per cent.
Looking at the numbers, from 2000 to 2002, bauxite production has increased by 21 per cent while alumina production has increased by 6 per cent.
LOCAL PRODUCTION
('000 TONNES)
YEAR 2000 2001 2002 2003
Bauxite 11,126 12,139 13,139 13,500
Alumina 3,601 3,542 3,630 3,800
Using figures released by the United States Geological Survey of world production of bauxite and alumina, Jamaica's 2002 mine production ranks as follows (figures have been rounded):
2002 WORLD
PRODUCTION FIGURES
| COUNTRY | 2001 | 2002 |
| Australia | 53,300 | 55,000 |
| Guinea | 15,700 | 16,000 |
| Brazil | 13,900 | 13,200 |
| Jamaica | 12,400 | 13,000 |
| China | 9,500 | 10,000 |
As at October 2002 the bauxite sector employed 3,900 persons directly. During that same period, according to the Statistical Institute of Jamaica (Statin), wages across all categories of staff averaged J$8,000.00 weekly with the basic hourly rate being J$178 per hour, up from J$174 per hour in 2001 and J$171 per hour in 2000.
As at mid November 2003, aluminum sold for around US$1,500.00 per tonne, translating into a US$300 per tonne price for alumina. Industry experts state that two tonnes of alumina are required to make one tonne of aluminum.
Reuters reported on November 14th that "spot prices for alumina, derived from bauxite and required to make aluminum, have rocketed to more than 20 per cent of the price of aluminum versus between 12 and 14 per cent normally - on pinched world supplies, caused in large part by unexpected Chinese buying."
In a April 18th Bloomberg report, Alumina Ltd, the Australian partner of Alcoa stated that Chinese consumption of aluminum soared causing expected world demand for alumina to increase for 2003 by four per cent. Chinese demand which is expected to jump by 10 per cent due to the rising use of aluminum in construction and cars in China.
Executives at Alumina Ltd. see demand in the United States, Europe, Japan and South Korea rising between 2 and 2.5 per cent.
