Jamaica embarks on renewed drive to capitalise on bauxite residue

 

 

Mining Minister Floyd Green says there is a renewed drive to capitalise on bauxite residue, otherwise called Jamaican red mud, with the development of a full commercial plant.

 

During his sectoral presentation in Parliament on Wednesday, Mr. Green noted that a lot has been made about rare earth elements in the past, but it has not amounted to much.

 

He explained that more than a decade ago, Japan's Nippon Light Metal, working with the Jamaica Bauxite Institute (JBI), found that the country's bauxite residue contains rare earth element concentrations that test at roughly 25 times those found in the upper continental crust.

 

Minister Green said the project never proceeded further because of a combination of factors, including world pricing and what was designed was a pilot, not a commercial plant.

 

He said the JBI is now in advanced discussions with the local licence holder towards expanding the pilot plant into a full commercial operation. 

 

"A two-year process and investment will begin for that this year. A robust sampling programme has been executed and we look forward to a formal signing. I have also instructed the team to finalise the fiscal regime around the production of rare earth elements. Madam Speaker, 70 per cent of our industrial mineral sub-sector is absorbed locally. It is the foundation of our construction industry, accounting for over 85 per cent of the cement used. In 2025, production of core materials increased significantly to approximately 5.9 tonnes, from 3.7 million tonnes in 2024, reflecting a strong demand for infrastructure and construction activities. With the rebuilding, this is going to increase," the minister pointed out. 

 

He said the government will continue to ensure that the revenues from non-bauxite mineral operations are collected efficiently and expeditiously.

 

Minister Green added that adjustments will be made to the Mining Act to ensure that the country benefits from all rare earth minerals found.

 

"Our Mining Act does maintain 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'm of the view that that legal position persists whether the red mud is here in Jamaica or in Louisiana," he indicated, noting that he has asked for the Attorney General's opinion on the matter while also instructing the ministry's legal team to "make the requisite changes to the Mining Act to make that position beyond doubt".      

 

Meanwhile, the Mining Minister said two of the world's largest mining companies are partnering with junior exploration companies in Jamaica to intensify the exploration for gold, copper, and related metallic minerals.

 

Mr. Green said Freeport-McMoRan, in partnership with C3 Metals, has agreed to expend US$75 million to explore for copper and gold, and Barrick Mining Corporation has partnered with Geophysx Jamaica to expend an initial US$20 million to explore for gold and copper. 

 

He said the companies have already reported "encouraging signs", adding that if these partnerships uncover commercial-scale deposits, Jamaica will reap great returns.