Dr Carlton Davis, in recent articles on the future of the bauxite/alumina industry, has named energy costs and bauxite quality as major challenges threatening the viability of the sector at this time.

Energy usage accounts for a significant portion of alumina manufacturing costs and with the current high oil prices, there is a compelling need to raise energy efficiency levels or develop alternatives if Jamaica's alumina is to remain competitive.

Bauxite quality is also a major problem as the availability of resources that can suit the capabilities of local plants is becoming increasingly limited owing to a number of factors, including environment, accessibility and manufacturing configuration.

Dr Davis puts these challenges against the context of the value of the industry to Jamaica as the nation's largest gross merchandise source, accounting for some US$1.3 billion in 2007.

That importance was reiterated by State Minister Laurence Broderick as he presented a glowing report during the Sectoral Debate on the industry's first-half performance, the point being well made that bauxite stands only behind tourism and remittances as Jamaica's top foreign exchange earner.

That position is, however, threatened by the alarming increases in oil prices and the adverse effects that these will have on manufacturing costs. There are also debilitating factors that the companies must deal with on a day-to-day basis in order to maintain stable operations.

Proximity of operations

One such factor has been the proximity of the operations to populated areas where environmental issues, real or perceived, are constantly in focus and where unrealistic expectations of full-time employment and other benefits are anticipated simply from the presence of the industry in the community.

There is nothing sacrosanct about bauxite and we maintain that environmental shortcomings must be addressed.

However, faced with the possible erosion of our competitive strengths from any further fallout in energy costs alone, we need to give serious consideration to the implications for the sustainability of an industry that has long provided a strong economic base for the country.

Any such review must go beyond basic considerations of production and earnings and include the wider concerns of the environment, safety, energy, community, and sustainable and equitable systems of land use

It should also include a path forward from a national perspective that would take into account the need to ensure that all stakeholders can work together to facilitate the continued valuable contribution of this industry to Jamaica's economic and social development.

The industry's social performance is well known through scholarships, the building of educational facilities, agriculture, health, youth development, skills training and community development.

The recent collaboration between Alpart and one of its partners, Hydro, to send a schoolboy team this month to a football tournament in Norway, is also an outstanding example of the good corporate citizenship displayed so often by the local companies and their owners.

It is surely not beyond our collective will to heed the advice of our industry analysts and take action to avoid pitfalls that have been spotted ahead for this important industry.