A section of the Alpart plant at Nain, St. Elizabeth, which produces 1.6 million tonnes of alumina annually. - File

United Company Rusal (UC), the new majority owners of Windalco and Alpart, is considering downstream investment in two new coal-fired plants as energy source for its bauxite operations in St. Catherine, Manchester and St. Elizabeth.

The Russian company, which took a substantial stake in Jamaica's bauxite/alumina sector earlier this year when it merged with Glencore and SUAL, says it is considering the development of two 90 MW plants.

The company is targeting energy independence, but also sees the plants as a source of income.

Representative Igor Dorofeev says the plan is to generate enough electricity to sell into the national grid, the Government's news agency JIS reported.

No price was discussed, but such plants generally require an investment of US$1,500 to US$2,000 per kilowatt, which would translate to about US$270 million to US$360 million at the top end for the combined 180 MW to be installed.

Glencore - which owns 12 per cent of UC Rusal - had already done a feasibility study on the plants with, it seems, favourable results.

Interested in pursuing the project

"We are very interested in pursuing the project for it would lower our energy cost, increase efficiency, expand employment and allow us to contribute to strengthening the national energy grid," said Dorofeev.

The UC Rusal merger was finalised in April, immediately propelling the company to the No. 1 spot as the world's largest bauxite operation, toppling Alcoa.

UC Rusal currently employs over 100,000 workers in 17 countries, and produces some 10.6 million tonnes of alumina annually.

Its assets here include 93 per cent of Windalco at Ewarton, St. Catherine and 65 per cent of Alpart in St. Elizabeth.

Windalco has two alumina refineries and mines at Ewarton and Kirkvine in Manchester, a shipping port in Port Esquivel, St. Catherine, and farms in Man-chester and St. Ann.

Alpart, which is now being managed by Alberto Fabrini after the resignation of Darel Harriman at the end of May, is currently performing at 1.6 million tonnes per annum, which UC Rusal hopes to boost to two million, while Windalco is now churning out 1.2 million tonnes.

Number five in the world

The two plants represent 26 per cent of UC Rusal's world production. Jamaica is considered the world's number five bauxite producer.

Dorofeev said Rusal has made considerable progress in developing clean coal-generated energy.

"The technology is very advanced for coal, so a lot of the earlier concerns are no longer valid," he maintained.

"This investment would be a good thing for Jamaica overall, and we are actively and enthusiastically pursuing it.

- Gleaner and JIS reports