St Ann could get coal-fired refinery
Published:Thursday | May 8, 2014 | 12:00 AM
Daraine Luton, Senior Staff Reporter
SIGNALLING THE possible revival of the bauxite sector, portfolio minister Phillip Paulwell on Tuesday announced that a deal could be inked with Xinfa of China, which would see the building of a coal-fired refinery in St Ann, and the export of up to 4.5 million tonnes of bauxite annually for 25 years.
In opening the Sectoral Debate in the House of Representatives, Paulwell said the deal with the Chinese would see construction of the refinery as well as the export of ore beginning early next year.
If the deal materialises, Jamaica could see at least two coal plants producing electricity for bauxite operations as Paulwell also announced that Russian company, UC Rusal, will continue to enjoy waivers on the payment of bauxite levy if it also put up a coal plant.
"Cabinet has given approval to grant UC Rusal a bauxite levy concession for an additional two years in respect to its Ewarton operations on condition that it constructs a coal-fired energy solution at the plant," Paulwell said.
Apparently mindful of the backlash from the announcement that coal will be the fuel of choice for the refinery, the minister said the project will be undertaken in accordance with international best practices and "be fully compliant with our environmental laws".
Paulwell said Jamaica's development will be dependent on the ability to find cheaper and more efficient sources of energy.
"Much of the developed world build their economies using as much as 80 per cent of electricity generation from coal," Paulwell said, while adding that any responsible government must consider all options for electricity generation.
Bright future ahead
In the meantime, Paulwell, while arguing that there is still a bright future for bauxite in Jamaica, said the days of exporting raw bauxite are numbered.
"Going forward, the policy of the Government of Jamaica is that there will be no new agreements for the export of raw bauxite without specific conditions. While all existing agreements will be honoured, no new agreement will be considered unless it is accompanied by a commitment to build an alumina refinery with specific timelines for implementation," Paulwell said.
The minister told Parliament that the Government has signed a memorandum of understanding with Xinfa and has appointed a negotiating team led by Dr Vin Lawrence, who is to head the oversight team for the 381MW project to settle the terms of the agreement, which have to be concluded by the end of August.
"On the successful completion of the negotiations, we will not only be mining bauxite in that area of St Ann, as was the case with the Reynolds mine. We will be producing alumina from St Ann," Paulwell said.
The Xinfa engagement is measured at US$3 billion in foreign direct investment, Paulwell said.