MP for South Western St. Ann and Opposition spokesman on mining, Ernie Smith, made his maiden presentation in the Sectoral Debate last week. Below is an excerpt of his presentation
MR. SPEAKER the mining sector is the most viable area of the economy. Bauxite our main mineral resource is vital to foreign exchange earnings and job creation, township development. Mandeville, May Pen and Discovery Bay are examples.
Mr. Speaker, over the years the Bauxite Industry has been able to maintain stability notwithstanding constriction in the economies of a number of countries where alumina is used.
Mr. Speaker, if bauxite earnings should fall it would spell disaster for Jamaica. Care, Mr. Speaker must therefore be taken in the exploration of this our principal natural resource.
BAUXITE MINING
Mr. Speaker, I do not believe that sufficient importance has been placed on Bauxite Mining. I say this because bauxite to Jamaica's economy is as significant as Bob Marley is to reggae music. At present the affairs of the sector falls under a Ministry of Development within the Prime Minister's Office. Mining Mr. Speaker, should be married only to energy because of the amount of fuel used in the sector. In addition Mr. Speaker,
there are a number of other mineral deposits which need to be exploited and developed on a commercial basis. In order to do this the Mining Portfolio must be concentrated and not diluted over several Government and Quasi Government agencies.
Mr. Speaker, while the Bauxite and Alumina Industry has remained stable there is room for improvement and modernisation. Bauxite Mining Mr. Speaker is a diminishing asset. Every ton mined reduces our reserves.
Every effort must be made to produce at the lowest possible cost per ton in order to give us a competitive edge in the international market. Bauxite Mining will continue to be the base of our development for the next 50 years.
IMPROVING THE INDUSTRY
In order to increase production and reduce cost Mr. Speaker the following recommendations are made:-
Government through the JBI as a facilitator, should ensure that the expansion programme at Jamalco and Alpart stay on course.
The Ewarton plant is located in an area where there are vast acres of deposits. This plant should be converted into a Mega Plant producing a minimum of 3 million tons of alumina per year.
This would result in a reduction in production costs which now stands at US$130 per ton. Our total production of alumina from all plants is about 4 million tons. In Australia 4 million tons per annum is produced by one plant.
The Australian Company Henry Walker Eltin Group Ltd. is now mining on behalf of Alpart Jamalco and Windalco. This move has resulted in a drastic reduction in costs to the companies. This form of joint mining must be encouraged. The more we save on production costs, the more competitive we will be in the market place.
Resume Bauxite Mining of the deposits formerly owned by Reynolds Mine. The ore would then be transported to the Mega Plant at Ewarton. The fact is that it would be too expensive to re-open the plant, investors would be reluctant to spend the capital necessary to do so.
According to the London Metal Exchange the price of alumina varies between a low of US$110 to US$185 per ton. Our goal must be to reduce local production costs from a high of US$130 per ton to at least US$100 per ton.
Millions of dollars are spent every year in the importation of quick lime used in the alumina process, production costs could be further reduced by using locally produced quick lime.
Investigate the use of Liquefied Natural Gas (LNG) in the plants as a method of reducing energy costs.
IMPACTS
Mr. Speaker, Bauxite Mining impacts on other sectors of the economy and the environment. To this end it is not the function or intention of the Opposition to engage in any assault against the sector or the Government, but to make recommendations for improvement.
Mr. Speaker, there is need for improvement in both the quality of the land reclamation exercise and the speed at which land is reclaimed after mining. In every parish dangerous pits and lakes exist. Too many pits are unfenced and refilling incomplete. The NRCA needs to be more vigilant.
Reclaimed lands must be made available to farmers for the production of cash crops, such as legumes red peas help to improve the fertility of the soil. These lands are ideal for cattle, goat, sheep rearing. The Ministry of Agriculture, JAS and RADA should be proactive in this regard.
