West Indies Alumina Company (Windalco) yesterday said it would temporarily close operations at its Kirkvine and Ewarton refineries on March 31, putting more than 250 part-time workers out of a job and leaving the fate of 850 permanent staff hanging in the balance.

The announcement, which took workers and their union by surprise, came three days after aluminium recorded a slight increase over its lowest price in over six years on the London Metal Exchange.

Wire services reported at the close of trading on Friday that the three-months aluminium price was indicated at US$1,338/48 a tonne, up from US$1,316.50 a week before.

Yesterday, WINDALCO, though not giving a date for resumption, said it would keep 850 permanent staff on its payroll and, over the next two months, cut 250 part-time and contract workers.

Just last week, Prime Minister Bruce Golding said the country should be prepared for setbacks in the bauxite sector, with the possibility of a complete shutdown of one or more alumina plants.

Golding told Parliament that his administration was working hard to avoid any shutdown and to keep the bauxite/alumina sector operating.

WINDALCO started operations in Jamaica on June 7, 2001 when Glencore took control of the Alcan Alumina operations and renamed it. The operation is managed by Russian firm UC RUSAL under a joint venture with Jamaica Bauxite Mining Ltd.

In a statement issued late yesterday afternoon, hours after Mining and Telecommunications Minister Derrick Smith announced the imminent closure in a press release, WINDALCO said preparations for suspension will start immediately.

Managing Director Andrew Currie said that “given the declining global demand for alumina and WINDALCO’s position as a high cost producer, we are forced to temporarily suspend our production. This is the only economically appropriate measure”.

The release stated further that the company will enter into consultations with its employees and unions to discuss the impact and the changes that will result from this decision.

However, yesterday, the National Workers Union, which represents more than 700 workers at the bauxite company, said it was first informed of the decision when the Observer contacted union head Vincent Morrison yesterday afternoon.

“I spoke with Andrew Currie at approximately 2:30 today and he never told me of any such thing and so this is the first we are hearing of a temporary closure by the end of March,” Morrison said.

He said he would be seeking a meeting with the management at the earliest possible time to find out why the union was not informed of the company’s decision before it became public knowledge.

When the Observer first contacted WINDALCO after 4:00 pm yesterday, Kayon Wallace, senior communications officer, said the company only got a decision from their owner earlier in the day and were in the process of informing the workers.

Meanwhile, Smith said the Government is currently negotiating with UC RUSAL to obtain an extension to ensure that the appropriate procedures for notification of closure are adhered to as stipulated under the joint venture agreement.

Smith described UC RUSAL’s intention as not surprising in the context of the state of the bauxite alumina industry globally.

He said he wanted to assure bauxite/alumina workers and their trade unions that the Government is doing everything possible to delay plans for the temporary closure of UC RUSAL’s operations and is exploring all options which will keep the plant open.

Efforts to speak directly to Smith proved futile as two messages left on his cellphone were never returned and permanent secretary in the ministry, Marcia Forbes, said he was the best person to comment on the matter.

The WINDALCO release said the decision was in response to the drastic reduction in demand for alumina as a consequence of the global downturn and continued unfavourable aluminium market conditions.