Mandeville, Manchester — Minister of Science, Technology, Energy and Mining Phillip Paulwell told a recent People’s National Party (PNP) public meeting here that they should expect an important announcement soon, regarding the operations of bauxite/alumina company Alpart.

“By December the refinery will be opened. On the day after the elections we have an important announcement because ALPART is going to be a flagship company in this part of the world,” Paulwell told thousands of Comrades massed at the centre of Mandeville.

Paulwell made no mention of a reported deal between Russian owners of Alpart UC Rusal and Chinese metals giant, Jiuquan Iron and Steel (Group) Company (JISCO). But persistent reports say an arrangement for sale of Alpart to JISCO is to be announced soon.

Last November the minister confirmed to the

Sunday Observer that negotiations were taking place regarding the mothballed Alpart alumina refining plant.

And last month the

Business Observer reported that an agreement has been signed. The Business Observer cited sources as saying JISCO was the buyer.

The Business Observer reported reliable sources as saying that the transaction is likely to be concluded by the third quarter of 2016. That report said the price for the purchase of the Alpart plant had been agreed on, and that the Chinese company will now enter into its due diligence phase before the financial close later this year.

The Alpart plant, based in Nain, St Elizabeth, was Jamaica ‘s largest alumina processor until it closed in early 2009 due to the impact of the global financial meltdown and the high cost of imported oil at the time.

The local and wider economy was thrown into a tailspin by the closure. Alpart had been a major employer of skilled and unskilled labour since its establishment in 1969.

Though the alumina refining plant remains closed, Alpart resumed bauxite mining operations early last year with raw bauxite being exported to eastern Europe. A condition of the mining arrangement is that the alumina plant is to reopen in December this year.

Alumina is refined from raw bauxite (mineral) while the metal aluminium — used in a wide range of manufactured metal products — is smelted from alumina overseas. There are no aluminium smelters in Jamaica.

Paulwell has consistently insisted on the December deadline for the reopening of the alumina plant at Alpart. Last November he told the

Sunday Observer that whatever happens in negotiations between the Russian openers and prospective buyers, the Government will be standing firm by Rusal’s commitment to reopen the alumina refinery by December.

“The terms remain the same, those terms are sacrosanct,” said Paulwell at the time. “The terms will remain the same in terms of the date for reopening, that’s sacrosanct,” he added.

Since the fallout from the 2009 closures of Alpart in St Elizabeth and Kirkvine in Manchester, community leaders have been discussing many ‘life after bauxite’ initiatives.

The idea for Business Processing Outsourcing has taken root.

United States-based firm Sutherland Global recently opened a call centre in Mandeville and expansion is said to be on the agenda.

— Alicia Sutherland