Just five more years — that’s how long CEO of Noranda Bauxite Company operating partner, Concorde Resources Ltd, Mark Hansen believes that the amount of land approved under the terms of the Special Mining Lease (SML-173) will serve in the production of bauxite for export.

Hansen, who spoke with the Jamaica Observer from London last week, expressed disappointment that Noranda was allowed a mere one-third of what the company had applied for under the SML, said he respected the decision and had already moved on with company plans in the set-up that also sees the Jamaica Government owning a 51 per cent stake in the organisation to Concorde Resources’ 49.

Responding to a question about how the reduction of land for mining would affect the company’s long-term projections, Hansen said: “We have come to a conclusion on the permit and finalisation of SML-173 will be and it is substantially smaller than where it started, it’s an important point to note. Even more so, the mining area within that permit of 1,300 hectares is going to end up being very small, only about 254 hectares of land to be mined for bauxite and used for haul roads and things like that. So in the end, it’s a good victory for conservation and at the end of the day we have decided to accept that, move along, and conduct our business for the permit for within the foreseeable future.”

The National Environment Protection Agency (NEPA) recently approved a section of St Ann for bauxite mining — a much-reduced portion than Noranda had sought. In fact, a section of land in the adjoining parish of Trelawny, which Noranda also applied for, for mining purposes, was rejected.

Noranda had applied to NEPA for a substantial portion of land, outside of the Cockpit Country, for mining. The company had said that it would not appeal NEPA’s decision to grant a vastly reduced amount of land than originally requested.

Hansen said there remained a commitment by Noranda to make use of what has been approved, in the best way possible.

“Between our existing SMLs in that permit area, we are gonna make that work. It could work for five years. For a bauxite company it is a short time and during that time we have to assess how the future of the business looks in Jamaica. I mean that not in a negative way, but eventually we have to have discussions of where else is reasonable to mine. I think our clear commitment is that we are fully supporting and respecting the Cockpit Country protected area and we just have to assess on a future basis. Our focus right now is just bringing this matter to a conclusion and do what we can with it,” Hansen told the Sunday Observer.

“What it means is that we must be very careful about bauxite land — the quality of bauxite that we have between the SML and the smaller permitted areas. It will have some cost impact for the business. It will put some constraints on the Noranda operations, but in something like that we weigh the results, the positives and the negatives. Given the public discourse around it, it’s good to put the matter to a conclusion,” the CEO continued.

But with the reduction of the land, would there be a negative impact on employment, was the next question put to Hansen.

“Not in the near term,” was his swift response. “We tried to make people aware that this was an important matter, one that had to be balanced both from a business perspective and environmental conservation perspective, and we just have to see where that lands,” he stated.

And would he, as operating head of Noranda, re-engage in future discussions with the relevant authority about the possibility of extending talks regarding more land that could push the company beyond its five-year projection?

“We are in the bauxite business and we are very committed to Jamaica, but it’s not something that today, our focus has shifted to. What we would like to do is demonstrate what we said we would by doing a good job in the areas that we are working – working hard on land reclamation, engaging with the communities, doing a better job than what was done in the past, and then seeing how that works out. Sometime in the future, I don’t know when that will be, we may look to see what other areas are available that the business can be sustainable for a certain length of time with other bauxite reserves, we will certainly take that into consideration, while observing the public desire around it. You never know how those things shake out in the end.

“The point I want to emphasise is that this should be seen as a good step. This is a bauxite company that has taken on board public discourse, taking a thoughtful approach as to what the regulator has issued as a permit and not appealing that decision, and I think that there should be some consideration given to the fact that it means that this company has to work very hard to preserve itself as a substantial business in Jamaica, to take into account the uncertainty that exists beyond the five years, and use that as a business fact going forward.

“I would have appreciated, perhaps, in the public discourse some more consideration to the benefits that do exist from being a substantial employer and participating in the export market for Jamaica and the community…the support that we provide and I think that’s something that should be part of that discussion going forward.

“I would want to emphasise that there is no need to have an immediate concern around employment, but it’s something that, over a realistic timeline of some years, that’s a discussion we need to have about how that will look. But we will endeavour to take on board the will of the people in terms of conservation and where we should be looking, as opposed to just disregarding that,” Hansen told this tabloid.

SML-173, now in its third form, has been reduced from its original 8,335 hectares to its present 1,324 hectares of overall bauxite area. Of that space, around 254 hectares will be dedicated to bauxite mining and road development, outside of the Cockpit Country.

“We will also continue constructive dialogue toward compromise and fair outcomes going forward. Such focus will be on maintaining NJBPII as a substantial commercial and community enterprise in Jamaica for years to come, while also considering, as much as possible, a diverse range of views on the environment, the CCPA, and bauxite mining in general,” the company had stated in a news release after NEPA announced its decision.