The US $490M Return of the Alpart Alumina Refinery

As a results of a high-level meeting in China between Minister of Agriculture, Fisheries and Mining Floyd Green, Ju Kuan Iron and Steel Company, JISCO, and officials from Gansu Province. Minister Green has confirmed the two-phased redevelopment plan to modernize a major fulcrum of Jamaica's mining sector, the Alpart facility in Naine, St Elizabeth.

 

Green said, “For decades, Alpart has been one of the anchors of the Jamaica mining sector and one of the most important economic engines in western Jamaica. Its operations have supported generations of workers, contractors, transport operators, small businesses and families across many communities. “

 

He said when Alpart operates, the impact is felt far beyond the gates of the refinery.

 

The Naine Alumina Refinery, commissioned in 1969 after several years of closure in the 2000s, was acquired by JISCO in 2017. Operations were restarted following an investment of approximately $360 million US, creating employment for approximately 1,000 people.

 

However, in 2019, operations were suspended and have remained that way ever since.

 

Green said, “Over the last 5 years, JISCO has undertaken a comprehensive feasibility process to determine the most viable pathway to return Alpart to full operation. JISCO ‘s technical teams assessed the existing plant, examined the investments required, reviewing modern technologies and visited other jurisdictions to study approaches being used internationally to improve efficiency, reduce costs and modernize aluminium production. We also directly engage with the governor of the Gansu province and his team. It is important to understand madam speaker that JISCO is a state-owned enterprise, which is owned by the Gansu province, which means the provincial government plays a critical role in major decisions regarding investment expansion and long-term strategic direction.”

 

He said following that process, JISCO has determined the path forward for the reopening and modernization of Alpa.

 

Returning Alpart to full operation will require significant additional investments with technologies that improve efficiency being prioritized.

 

JISCO ‘s redevelopment plan is designed to return the refinery to a production capacity of approximately 2 million tons of aluminium annually implemented in two phases with phase one targeting 1 million tons per year and phase two adding a further 1 million tons.

 

Phase one represents an investment of approximately US $490 million. Green said, this investment will include the modernization of major operational systems, the upgrading of the plant infrastructure, the redevelopment of power generation facilities, the implementation of dry stacking technology for residue management, and the rehabilitation of the critical rail and port infrastructure with the objective of an official launch before June 2027.

 

He said, “It includes the introduction of advanced technologies and a 5-megawatt photovoltaic and energy storage hybrid system positioning Alpart as a green low carbon demonstration project. The project in phase one will take 20 months to completion.”

 

Securing adequate bauxite reserves was also a critical part of the discussions with a view to securing the long-term viability of refinery operations.

 

JISCO has indicated that approximately 149 million tons of bite reserves are associated with the lands currently being pursued which would support the long-term viability of the refinery operations.

 

The minister assured that the location of those identified reserves would not consider disturbing the protections of Jamaica's largest wet limestone forest.

 

“There is no contemplation of any bauxite mining in the cockpit country or close to the cockpit country at all. And as of this moment, no new lands have been ascribed or allocated to Alpart. They have identified areas that they may be interested in that are proximal to where they already operate, right? Some of those areas, however, are already under mining leases, right? So, they would have to go through a process.”

 

One, the minister admits other entities may be interested in should JISCO encounter difficulties in fulfilling its commitments.

He said, “The truth is we are now at a stage where I'm very sure other companies are very interested in existing mining leases. That's the stage of our bauxite industry. So, they appreciate that if they don't know act now, they may be unable to act at any other time.