Bauxite company back on track
As an insider it would be bereft of me not to speak of the immense sigh of relief breathed across St Ann with the completion of the negotiations regarding the new ownership of the bauxite operations in that section of Jamaica. This was expected to be finalised last Friday with the new owners, New Day Aluminum, stepping in to form a new partnership with the Government.
For the past several months those impacted by the fortunes of the operations across the parish watched with anxiety and concern as the unfamiliar conditions of US-styled bankruptcy and Chapter 11 proceedings hit former owners Noranda Aluminum in August.
Rumours of a consequent huge fallout in employment proved to be just that — rumours. Speculation that hundreds would lose their jobs were bandied about. To its great credit, Noranda restricted layoffs to about 20 job positions — and not the fabled 100 or so — while keeping the pipelines of production open at the mines in the Dry Harbour Mountains and at the port and plant in Discovery Bay.
However, shock waves were again felt throughout the communities and the parish as the loss of its third-party customer, Sherwin Alumina, in Texas, jolted the company, and for the first time since the great recession, Discovery Bay residents were seeing one ship per week calling at Port Rhoades pier as shipments fell by almost 50 per cent.
With this bad news, a dip in employment commensurate with the new, dismally low production rate seemed imminent. Again, to its eternal credit, and in an unselfish move, the unions and employees came to an agreement with the company to share reduced working hours and avoid the required layoff of 100 of their colleagues.
This has been the situation since September, with the company’s production limping along, the telltale one shipment per week (compared to three) telling the story, and the clock ticking at the bankruptcy court as the deadline of October 31 for finalisation of a transfer deal approached. All this with a possible shutdown looming over the plant.
I have always maintained, like many others in the industry, that a great deal of public misunderstanding exists regarding the close family relationships between the bauxite industry and its host communities.
Bauxite has never been just a large and significant employer. It is an important source of revenue and trade for vendors of goods and services, a start-up vehicle for hundreds of small and large businesses; a strong partner with agriculture, which is the mainstay for the majority of citizens who live within the bauxite belt; and a major foundation stone for the national economy.
In the case of Noranda, that company can look back on a record of significant contribution to the country since 2009 when it took that ‘leap of faith’ to purchase the St Ann Bauxite Partners during the heights of the financial recession of that period.
According to the Noranda Community Council, an organisation representing scores of districts and communities in the operating areas, the bauxite company’s return to full production at that time was like “a shot I the arm for the local and national economy”.
For the records, this company has provided some 500 direct employment jobs, 350 indirect employment jobs, and several hundred indirect job opportunities through contractor services and temporary jobs. And the US$80 million pumped into the economy each year did us no harm.
So for this company to have come so close to pulling down the shutters this year was nerve-wracking for many. An important point to be noted is that out of all the bauxite companies that have operated in Jamaica, this one has never closed its doors. Like the famous flashlight battery, it has just kept going on and on and on, and north-western Jamaica would find it difficult to carry on as normal if the operations ever closed.
Interestingly, next year 2017 will be 50 years since the operations came to St Ann, following a ten-year start-up in St Elizabeth when Kaiser Bauxite opened Port Kaiser on the south coast. Fifty years represent two generations growing up with the industry in this part of the world, if you get my gist.
There has been fallout in the environment and numerous charges of dusting and other inconveniences, including inconsistencies with land restoration after mining. There have been instances of outrage and demonstrations against the company — in some instances justified, in other cases I can say categorically out of my experience, absolutely not. The new company will have to take the environment into careful consideration, as the entire bauxite industry has learnt, somewhat painfully over the years, that residents, no matter how much of a family relationship exists, will quite rightly draw the line at any environment incursions into their territory and comfort zones.
As an aside, and from a historical look back, I recall that the battles between the industry and the environmental leaders are not new. Indeed, as far back as 1956, when Kaiser was considering settling into Discovery Bay, villa owners and tourism interests of the time objected strenuously to the company’s intentions to upset the layback north coast environs and tried to get the local residents to demonstrate against the company.
This backfired, however, as the residents, who saw jobs and opportunities in the coming of the industry, invited then Premier Norman Manley to a citizens meeting to discuss the potential new developments.
To the chagrin of the land and business owner class, the people stretched banners across the street saying, “We want bauxite.” And when the premier drove up in his Studebaker to the little marketplace meeting venue, it is said that he was hoisted unto a market stall where he rounded off his address by asking the people if they wanted the industry in their village or not. The answer was a resounding yes — the crowd cheered and a new day for the local economy was born.
It should be noted that Noranda, in the last few years, caught up with land rehabilitation shortfalls left by its predecessors and earned the commendation of the present Minister of Mining Mike Henry on the work they are doing to meet land restoration obligations.
As said earlier, it’s not just employment or financial contributions to the national economy that the companies are noted for. Noranda will go out with a proud record in education. At last count the company would have granted some 600 scholarships or bursaries to first-year tertiary-level students; first-year bursaries of $25,000 each to the 300 leading Grade Six Achievement Test performers from primary and all age schools; hosted over 2,500 youngsters at summer camps held in Discovery Bay and Alexandria each summer; and maintained parish sports competitions as sponsors of St Ann cricket, netball and football leagues.
As the new minister of mining has observed, however, the company’s pioneer work in greenhouse technology is probably the jewel in Noranda’s crown. With 120 greenhouses established in partnership with farmers and schools in St Ann, Noranda has introduced productive technology in areas where traditional agriculture was fading, and inspired an industry- wide greenhouse expansion led by the Jamaica Bauxite Institute and Jamaica Social Investment Fund across the country, which is sure to revolutionise farming in this country.
So here comes New Day Aluminum Jamaica Limited. It’s a lifeline welcomed by the Noranda Community Councils at its recent meetings, and regarded as a new beginning by employees and stakeholders. “There were dark days ahead for the communities and its workers,” said St Ann Custos Norma Walters at the monthly meeting of the St Ann Homecoming & Heritage Foundation last week. “But speaking on behalf of the various civic leadership groups across the parish, this news is welcomed and we wish them long life with this new partnership.”
As one member of the community council said at the council’s monthly meeting on Wednesday evening, it will be heartening to see the railroad back on track.
Lance Neita is a public and community relations
