Bauxite Industry in The Jamaica and The Caribbean

Bauxite Industry in the Jamaica and the Caribbean
Bauxite is the ore from which aluminum is made. Jamaica contains some of the largest known
deposits of bauxite in the world. The mining areas are located in the western and central parts of
the island. After mining, most of the bauxite is carried to alumina plants where it is refined into
alumina. The alumina (or in some cases unrefined bauxite) is carried to export ports by rail. Most
of Jamaica’s bauxite is refined into alumina and the rest is exported unrefined. The marketing of
bauxite and alumina is done by large international companies. The video below shows aspects of
the bauxite mining and refining process undertaken by Alcoa in Jamaica and elsewhere.
Location of Bauxite in the Caribbean:
Mining:
i. Bauxite :
1. Jamaica (Ewarton; St. Catherine: Moneague-St. Ann; Halse Hall- Clarendon; Kikvine –
Manchester; Nain-St. Elizabeth)
2. Guyana (Linden, Ituni, Kwakwani )
Factors influencing the bauxite industry in Jamaica
1. Large deposits/reserves of bauxite found near the surface.

2. Access to transportation in the form of road, rail owing to bauxite lying near to
the coast (low transportation cost).
3. Near proximity to the major markets of Canada and the USA.
4. Labour force – skilled as well as technology
5. Government Policy – encourage foreigners to set up in rural areas by giving low taxation
or tax holidays for 10 years, bring in material duty free.
6. Provision of basic infrastructure: road, water, electricity, telephone.
7. Easier and cheaper to mine because of its location and softness.
Trends in the Jamaican Bauxite Industry
The future looks relatively secure for the industry. The capacity of the alumina plants has been
increased as a result of recent investment. The reserves are great enough to last several decades
at current rates of use. The bauxite contains few impurities. It is soft and therefore easily mined.
Transport costs are low as a result of rail lines and ports which are in place. Jamaica is also
located close to North America and can therefore easily supply the smelters there.
Problems facing the Bauxite Industry
a. The owners of the industry are changing hands. Moreso some have ceased operation
e.g. Alcan and Reynolds. The government is now a major shareholder.
b. Bauxite companies have cut production due to availability or access to large reserves
in countries such as Austrailia, Brazil and Guinea as well as the availability of scrap
metal/recycling or use alternatives e.g.stainless steel which is less expensive..
c. A recession on the world market has resulted in a weakened demand for
aluminum/bauxite.
d. The industry has been unionized hence labour disputes are common.
e. Government is levying high taxation on the company which serve to increase
production cost.
f. The industry is technology oriented hence the company is downsizing.
g. There no longer exist a preferential market to the U.K owing to globalization and the
new policies of the world market.
h. Lack of the needed technology e.g. smelters to process the alumina or bauxite into
aluminum.
i. Under marketing agreements such as EU and CSME there exist no preferential
treatment or restrictions, markets are therefore competitive
j. Due to the need to conserve on the resource through sustainability for future use
companies have to curtail their supply while sustaining loss through demand.
l. Problems of pollution and how to effectively deal with it.
m. Energy cost is high, imported petroleum.
n. Stiff competition is faced from other producers.
o. High cost or sharp increase in environmental clean up cost hence income is reduced.
Jamaica is finding it more and more difficult to compete with other bauxite producers around the
world. Countries such as Australia and Guinea have become important bauxite producers. Also,
aluminium smelters have been built in Europe, Asia and South America. North America is no
longer the major producer of aluminium.
Output per worker is lower and their wages are higher than in other countries. Jamaica needs to
find a way to reduce the cost of mining bauxite to remain competitive. This is especially so as
transport costs have dropped. This has caused mining costs to become a more important factor
than location near a smelter.
Environmental Issues caused by bauxite mining
Due to the methods of mining (open cast), the end result of mining on the landscape is very
unsightly. Jamaican regulations ensure that the land is reclaimed when mining in an area is
complete. The topsoil is removed and preserved before mining begins. When mining is done, the
land is smoothed , the topsoil is replaced and grass is planted.
Another issue is the disposal of the red mud produced when refining bauxite. This mud is
dumped into large “ponds”. The caustic soda contained in the red mud can kill nearby vegetation
and make the air unpleasant to breathe. It can also pollute water sources. However, improved
methods in alumina plants produce less red mud. Also, drains under the ponds extract some
caustic soda for reuse in the alumina plants.

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Bauxite Industry in The Jamaica and The Caribbean

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Bauxite Industry in the Jamaica and the Caribbean

Location of Bauxite in the Caribbean:

Factors influencing the bauxite industry in Jamaica

1. Large deposits/reserves of bauxite found near the surface.

Trends in the Jamaican Bauxite Industry

Environmental Issues caused by bauxite mining

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