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Government of Jamaica moves to save bauxite jobs

Published: Thursday | December 18, 2008


Daraine Luton, Staff Reporter

GOVERNMENT IS attempting to lobby bauxite-producing companies to not cut back on production despite a growing surplus and low demand for the commodity on the world market.

Minister of Mining and Telecommunications, Derrick Smith, told Parliament Tuesday that the State was seeking, among other things, to get bauxite companies to commit to saving jobs and sustaining production levels.

Smith told the House that a team, inclu-ding him and Prime Minister Bruce Golding, had met with the major players in the bauxite sector and there was consensus to work towards saving the sector.

Survival

"All the parties have now agreed and are willing to make some compromises for our survival. We are going to have to give something to get something," Smith said.

He added: "The ultimate objective that this is all about is a continuance of the production in Jamaica and the retention of as many bauxite workers' jobs as possible."

Economic meltdown

A world economic meltdown, which has all but grounded the production of cars and the construction of houses, threatens to devastate the bauxite and alumina sector.

Finance Minister Audley Shaw told Parliament that the demand for bauxite was so low that all storage facilities for the commodity were filled and ships were forced to keep cargo on-board.

At least 300 persons have lost their jobs since the demand for bauxite took a nosedive. The West Indies Alumina Company and Alumina Partners of Jamaica have both sent home 150 workers.

Alumina prices have fallen from US$3,200 per tonne earlier this year, to just under US$1,700 per tonne, on the London Stock Exchange.

daraine.luton@gleanerjm.com.

Government's wish list for bauxite

Limiting job loss.

Continuation of production at a sustained level.

No pullback in community outreach.

Maintenance of high levels of security at bauxite companies.

 
 


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