Jamaica pushing to establish commercial rare earth plant

Durrant Pate/Contributor

With the price of rare earth continuing to rise, Jamaica is pushing to develop a local commercial plant utilising the country’s local red mud and bauxite waste, which has significant rare earth properties.

This was disclosed in parliament yesterday by Minister of Agriculture, Fisheries and Mining, Floyd Green, during his Sectoral Debate presentation in the House of Representatives.

More than a decade ago, Japan’s Nippon Light Metal, working with the Jamaica Bauxite Institute (JBI) developed a pilot plant to carry out further tests and commercial viability, finding that local bauxite residue and red mud contain rare earth element concentrations that test at roughly 25 times those found in the upper continental crust. 

Rare earth used in the manufacture of electronic vehicles (EVs), high-tech electronics, green energy technologies, defence systems, and industrial manufacturing. In spite of the positive findings, the project never proceeded any further, through a combination of factors, including world pricing and the fact that the plant was designed as a pilot and not a commercial plant.

Expanding pilot into commercial plant

With renewed drive to capitalise on Jamaica’s red mud and bauxite waste, the JBI is now in advanced discussions with the local licence holder towards expanding the pilot into a full commercial plant. Minister Green said, “This will be a two-year process and investment that should begin this year. A robust sampling programme has been executed, with the government looking forward to the formal signing.”

He has also instructed the team to finalise the fiscal regime around the production of rare earth, noting that, ”any such regime has to ensure it reflects the true strategic value of the resource and that Jamaica and Jamaicans get their fair share. We believe that countries like the US and Japan would be great partners for strategic supply arrangements. Jamaica stands ready to partner.”

The Minister admitted that a lot has been made about rare earth elements in the past, but unfortunately, it has not amounted to much, adding, “Now more than ever, Jamaica must take its place at the forefront of the world’s conversation about these critical minerals.” 

Jamaica looking to get its share

The minister drew reference to the Mining Act, which maintains that where someone has a licence for one mineral but finds another, he is under a duty to report it and to pay royalty. 

“I am of the view that the legal position persists whether the red mud is here in Jamaica or in Louisiana. I have asked the Attorney General to opine on the subject and have instructed the legal team to make the requisite changes to the Mining Act to make that position beyond doubt,” Minister Green told the lower House of Parliament.

In conclusion, he remarked, “Nations that secure reliable supplies of rare earth elements will anchor the next industrial age. Those who do not will depend on whoever does.