Leo Cousins (right), managing director of Lynford Mining Company Ltd and Armand Nahmiache, president & CEO of Cement Jamaica Limited shake hands at announcement of the joint venture arrangement of a new cement and limestone processing complex to be build in Lynford, St. Ann, at the Jamaica Pegasus hotel, New Kingston on Monday. - Winston Sill/Freelance Photographer

The St. Ann-based Lynford Mining Company has struck a partnership deal with the Canadian-based consortium, Cemcorp Cement which trades locally as Cement Jamaica Limited, to invest US$200 million ($136.6 billion) in the construction of a cement and limestone processing plant at the Ocho Rios port this year.

The 13-year-old company, which exports the bulk of its mined limestone to New Orleans, is estimating revenues from the investment of US$90 million per annum. The new facility is expected to employ a total of 1,500 persons when it becomes operational. It is not clear by how much more this project will boost the company's revenue.

The cement plant will be designed with a capacity to produce 1.5 million tonnes per annum, 450 million tonnes more than what the Caribbean Cement Company Ltd currently produces.

Rehabilitation and upgrading

The first stage of the project is slated for completion in 12 months, while the remaining stages will be done in three years. The first phase of the investment will involve the rehabilitation and upgrading of the existing seven-mile overland conveyor platform at the Ocho Rios port to transport about 2.5 million tonnes of material per annum. The port will also be restructured to handle sugar, limestone and other products, as well as, facilitate tourists.

President and CEO of Cement Jamaica Limited (CJL), Armand Nahmiache told Wednesday Business that his company would be putting up about US$80million of the funds for the project and source the rest via debt financing. which includes white a cement manufacturer and a quarrying entity.

"We have taken care of the equity debt ratio, which is between 30 per cent to 40 per cent," said Nahmiache in advising that the financing is in place and that several entities, including AIC's Michael Lee Chin have expressed an interest.

The company also manufactures white cement and owns a quarry.

Director of Lydford Mining, Leo Cousins said he was not expecting any quick returns from the partnership. "We are not looking for a quick return," Cousins said.

"We are going to supply enough for the local market," he continued, while noting that 90 per cent of the products will be exported to North America to satisfy industry shortages.

The investors also plan to develop a quarry complex to supply limestone for the cement, aggregate and desulphurisation industries with an overall capacity of 5 million tonnes per annum.

Rock export and desulphurised grades of limestone are also in the company's vision for early 2008. Other finished products amounting to two million tonnes per annum is also planned for addition in 2009.

susan.gordon@gleanerjm.com