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Bauxite companies topple Court injunction
Bauxite mining operations
Latest News
June 13, 2023

Bauxite companies topple Court injunction

KINGSTON, Jamaica – The Court of Appeal has cancelled an injunction granted by the Supreme Court in January, to bar Discovery Bauxite Operations Limited (DBOL) from continuing to mine the mineral in a special area outside the controversial Cockpit Country, while awaiting a decision from the court in November.

In the January ruling, Supreme Court judge, Justice Anne-Marie A Nembhard, had favoured nine residents from the area, and their legal team, led by King’s Counsel Michael Hylton, who claimed that the mining operations affected their constitutional rights, despite pleas from DBOL, which had earlier swallowed up mining companies Noranda Jamaica Bauxite, in which the government has a 51 per cent share, and is a partner in Noranda Jamaica Bauxite.

Noranda and New Day insisted that blocking the mining would affect the survival of the new company, because mining is its only business activity.

They noted that the communities would be adversely affected, because welfare-related activities would be halted. They said there would be a substantial loss of jobs and contracts to third parties in the selected area.

They also hit back that the judge’s order ignored a number of positives developments expected from the mining agreement, including projected tax collection inclusive of bauxite production levy and royalties for the financial year 2020/23 of approximately US$35 million, as well as a further US$139 million projected for tax collection for the period 2023-2027, which would even more negatively affect the Jamaican economy.

Former Minister of Mining, Robert Montague, had informed the House of Representatives in 2021,that the $2 billion included US$13.7 million paid over by UC Rusal, which operates from Ewarton Works, Swallenberg, Port Esquivel, and Kirkvine in St Catherine.

The mining companies accused Justice Nembhard of failing to reconise the potential blow to the economy, if the companies are to remain idle until the case is addressed in November.

The case for Noranda Jamaica Bauxite Partners II and Noranda Jamaica Bauxite Partners was argued by Ransford Braham, KC, Glenford Watson and Christina Thompson. King’s Counsel Carlene Larmond and Giselle Campbell, instructed by Patterson, Mair Hamilton, represented New Day Aluminum (Jamaica) Limited. The residents were represented by Hylton, KC; Marlene Alleyne, Melissa McLeod and Daynia Allen, all instructed by Hylton Powell.

– Balford Henry

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