The Jamaican Bauxite Institute (JBI) is predicting a bumper year for the industry in 2007 with an extra one million tonnes expected to be produced.

The JBI, in a statement yesterday, said it was encouraged by the outlook for 2007, highlighting the Jamalco expansion which is expected to deliver a further 150,000 tonnes of alumina.

This builds on 2006 production which was the first time since 1974 that 15 million tonnes were reached with total revenue expected to be US$1 billion.

"This production level was achieved despite operational challenges and labour disputes which disrupted production during the year," said the JBI.

The statement added that revenue for 2007 was likely to climb to US$1.3 billion.

The JBI emphasised that the industry would need to become more efficient following falling prices last year caused by 'ballooning' Chinese production of global metal grade alumina, which increased by over 62 per cent to 12.7 million tonnes.

Exports increased

Bauxite produced for export increased12.6 per cent to 4.6 million dry metric tons last year, attributed by the JBI to the purchase of new equipment and efficiency gains at St. Ann Jamaica Bauxite Limited.

Meanwhile, alumina production increased by under one per cent to 4.1 million tonnes which the JBI said was largely attributed to capital and labour productivity gains at Jamalco.

However technical problems at Windalco and Alpart affected their production levels.