Advantage, Jamaica

THE BAUXITE/ALUMINA industry has been given some of the credit by the Planning Institute of Jamaica (PIOJ) for an increase in economic activity during the first quarter 2011.

The report indicates that output in mining and quarrying was up by 38.8 per cent due to the reopening of the Windalco Ewarton alumina plant and increased bauxite production by Noranda Jamaica Bauxite Company.

Dr Gladstone Hutchinson, director general, PIOJ, said bauxite production increased by 36.4 per cent. This was reflected in a 44.3 per cent increase in alumina production and a 29.2 per cent growth in crude bauxite.

This is good news for the Jamaican economy, but still a far cry from the halcyon days of the industry when foreign-exchange earnings from bauxite and alumina could be relied upon to underpin a major portion of the national budget.

From an impressive US$1.3 billion in 2008 we have seen gross earnings from the industry slip dramatically to US$467 million in 2009, while employment fell by almost 44 per cent between 2008 and early 2010.

With the expected reopening of Windalco Kirkvine in July, the employment figures should improve, while the economy should benefit from whatever financial arrangements are made with owners RUSAL, said to be hard bargainers. The Government may have to give up certain concessions, but this must be balanced against benefits accrued to communities and the national economy.

A delicate balance

Those who would seek to criticise whatever agreements are made should understand that it is a delicate balance out there. The face of the industry has changed dramatically since the onslaught of the recession, and the transnational corporations have been busily opening new frontiers in countries that historically never appeared on the industry landscape. In such an intense competitive environment, Jamaica has to walk carefully between the raindrops in order to attract and secure the investment necessary to rebuild the industry, while at the same time protecting our national interests.

What are these national interests? The Bank of Jamaica, seeking to improve our foreign-exchange earnings, may look at it differently from the environmentalist, seeking to protect land and communities from any perceived deleterious effects of mining and processing.

The community resident who depends on the industry for employment, wages, and the traditional assistance given to education, agriculture, sports, and community development, will see his or her 'national interests' in a different light.

In this new era of bauxite-treaty negotiations, community interests and the community as a stakeholder become important items on the agenda. Events over the years have proven that securing support and understanding from communities is plain common sense and amounts to best business practice.

Meeting needs

In this regard, and as we talk with the multi-nationals, it should be advantage, Jamaica, as our past experiences and community-relations expertise honed under testing circumstances should have taught us how to balance socio-economic needs and community cultural conditions with industry needs.

We can negotiate with a relatively clean sheet in terms of having learnt how to better manage community relations, environment problems, and reduce concerns that lead to community upset.

Joint resolution and sound communication has always been the answer, and community councils established around the industry with representation from community groups, company employees, and the Jamaica Bauxite Institute, have a good record in securing peaceful resolutions to many of these issues.

The newest kid on the block, Noranda Jamaica, has been following the example set by its predecessors in the industry, by acting as a responsible corporate citizen in areas of social responsibility.

On the south side, Alpart's community council is setting an example to bauxite communities around the world. Community residents have been given the responsibility for descaling, janitorial and landscaping needs at the shuttered plant, providing employment and wages for over 190 persons. The company has found the key for sustainable community development during company downtime.

This should be a plus when it comes to active discussions for the reopening of Alpart. Any long term investment in Jamaica requires a stable and harmonious a context as possible.

Lance Neita is a communications consultant with over 35 years' experience in the bauxite industry. Comments to columns@gleanerjm.com or lanceneita@hotmail.com.