Jamalco back to full production after Beryl, port out of commission

Jamalco has resumed full production despite its declaration of force majeure due to damage caused by Hurricane Beryl at its Rocky Point port facility in Clarendon.

“Jamalco produced at its targeted 1.2 million tonnes per annum production rate in the second quarter,” Jesse Gary, president and CEO of Century Aluminum Company, said in an earnings call, the transcript of which was uploaded to Century’s website on Thursday.

Before this announcement, the operations were producing at 80 per cent of capacity.

Hurricane Beryl swiped Jamaica as a Category 4 storm on July 3. Since the initial disruption, Jamalco has restored refinery operations and secured alternative port arrangements to ensure continuous alumina shipments to its global customers.

“Our main port of export, which is Rocky Point, is out of commission right now and we are running through an alternative port right now. And so the force majeure really relates to that setup going forward. But, as I said, the plant is back to full production and we continue to have those alternative port solutions in place and to export alumina off the island,” Gary reported during Century’s second-quarter earnings call.

“The Jamalco team did a remarkable job restoring operations once the storm had passed, and the refinery has returned to full production levels,” said Gary, adding that while the port suffered damage, the refinery itself sustained minimal damage.

Century Aluminum Company is a global producer of bauxite, alumina and primary aluminium. The American company operates three aluminium smelters in the United States at Hawesville, Kentucky; Robards, Kentucky; and Mt Holly, South Carolina; one smelter in Grundartangi, Iceland; and the Jamalco refinery in Halse Hall, Clarendon, which produces smelter-grade alumina for global markets.

Jamalco is jointly owned by Century Aluminum, the managing parter with 55 per cent interest, and the Jamaican government with 45 per cent.

Century Aluminum’s group performance in the second quarter was marked by a 19 per cent increase in alumina prices, driven by tight market conditions.

The resilient performance at Jamalco came during a quarter of overall positive momentum for the American company. Century Aluminum posted an adjusted EBITDA of US$34 million, reflecting improved operating results and rising aluminium prices.

Gary attributed part of the quarter’s positive performance to improving global demand, particularly in the renewable energy and electrification sectors.

“We are confident that global trends towards electrification and lightweighting will continue to drive increased demand for aluminium,” he said.

Century Aluminum also benefited from favourable trade conditions in the United States and Europe, which have imposed tariffs and other measures to support domestic production.

As global alumina markets remain volatile, Century Aluminum will continue to rely on Jamalco’s output to mitigate the impact of supply disruptions and capitalise on rising prices.

With the alumina market expected to remain tight and alumina prices hovering near their highs, Jamalco’s stability is a critical asset for Century. However, Gary cautioned that the refinery’s reliance on alternative port facilities could pose ongoing logistical challenges until the repairs at Rocky Point are completed.

“We don’t expect a material impact to our results or to Jamalco’s results going forward,” Gary assured analysts during the earnings call. “You can’t say they’re exactly as normal when they’re running out of an alternative port, but we’re continuing to make exports from the island,” he said.

steven.jackson@gleanerjm.com