He noted that the Jamaica Bauxite Institute (JBI) has intensified its efforts to strengthen bauxite communities, with a strong focus on agriculture, entrepreneurship, education, health, and infrastructure.

The Minister explained that community councils have traditionally served as the main channel through which communities are engaged and select their projects.

“Where the community councils are strong, there is significant engagement and where the community councils are weak, there is poor engagement. We did seven audits of bauxite community councils last year, and were going to be restructuring the community councils,” Mr. Green stated.

“One of the things that’s non-negotiable [is] the Member of Parliament must have a representative on the community council. [That’s] very important, and we are going to partner with the Social Development Commission (SDC) to bring in some new blood on these community councils,” he added.

The Minister was making his contribution to the 2026/27 Sectoral Debate in the House of Representatives on Wednesday (May 13).

Meanwhile, Mr. Green announced that Phase VIII of the Bauxite Community Development Programme has been approved, ensuring the continuation and expansion of targeted investments in infrastructure, livelihoods, and social development across bauxite-bearing communities.

“We will be spending significant sums on a number of areas. A total of $70 million will be [spent] to support education activities and $30 million has been earmarked for healthcare. Operation Pipe Water will be accelerated to bring water infrastructure into communities that now do not have water,” he stated.

Allocations to Members of Parliament for constituency development within bauxite communities will also be increased, enabling greater responsiveness to local priorities and community-driven projects.

Additionally, 50 acres of land have been identified in St. Ann for the development of an agro-park, supporting the Government’s food security agenda, agribusiness expansion, and increased employment opportunities in bauxite-bearing areas.

Minister Green also noted that in 2024, the Hoilett/Lambert Scholarship was launched, awarding 14 students scholarships valued $500,000 each.

“I’m pleased to announce that we’re expanding/doubling the support. This year, we will be offering 30 scholarships to students in bauxite parishes who are studying science, engineering and logistics,” he stated.

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They benefited from training under the Bauxite Community Development Programme (BCDP), managed by the Jamaica Bauxite Institute (JBI), which aims to boost sustainable agriculture in mining communities.

The workshop, held at the Porus Community Centre on May 5, targeted farmers from Broadleaf, Hampton Road, Redberry, Good Hope, Reeveswood, St. Toolies, Oliphant, Ramble, Harmons and Porus.

Undertaken through partnership with NutraMix, the session covered areas such as chicken care, coop preparation, litter management and the slaughtering of birds.

Veterinarian at NutraMix, Dr. Gilbert Williams, who led the session, provided the poultry farmers with valuable tips on how to improve their practices.

“A lot of farmers are doing some incorrect things, so we are imparting the correct know-how using pictorial presentations instead of just words. Farmers of all educational levels can relate to it, so that chicken farming can become more profitable,” he said.

“Because of the presentation pictures, farmers are seeing what they and their colleagues are doing, so they are receptive,” he told JIS News.

Dr. Williams noted that the poultry sector, which was virtually wiped out by Hurricane Melissa, is “bouncing back slowly but surely”.

He informed that Nutramix has been supporting the rebuilding effort, with livestock support teams and sales units reaching out to farmers across the island.

“Nutramix has a starter pack where we try to help farmers get back on their feet. We build houses (coops) and reach as many farmers as possible with the best management practices, to be more profitable at the end,” he said.

Meanwhile, veteran poultry farmer Myrna Jones, who is from Redberry District, said that the session was helpful.

“I learned the proper way to cut the neck of the chicken,” she told JIS News.

She said she discovered that leaving the head on (not decapitating) while slaughtering the chicken will ensure faster and more complete bleeding. This reduces the bruising of the meat.

Ms. Jones noted that while she sustained major losses during the hurricane she was not giving up.

The training session included the handover of a defeathering machine as part of the Porus Sustainable Poultry Development Initiative Boiler Expansion Project.

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“Yet the project never proceeded further because of a combination of factors, including world pricing and the fact that what was designed was a pilot, not a commercial plant. There is renewed drive to capitalise on our red mud – Jamaican red mud,” he said.

“It is worth indicating that 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 am of the view that that legal position persists, whether the red mud is here in Jamaica or is 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,” he added.

Green informed that the JBI is now in advanced discussions with the local licence holder towards expanding the pilot plant into a full commercial plant.

He said a two-year process and investment will begin for that this year, adding that a robust sampling programme has been executed and that “we look forward to a formal signing”.

“I’ve also instructed a team to finalise the fiscal regime around the production of rare earth elements. Seventy per cent of our industrial mineral subsector is absorbed locally. It is the foundation of our construction industry, accounting for over 85 per cent of the cement used,” Green said.

He noted that in 2025, production of quarry materials increased significantly to approximately 5.9 million 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. We are going to continue to ensure that the revenues from non-bauxite mineral operations are collected efficiently and expeditiously, while we continue to encourage investors to move from just marl production and to go into value added. Jamaica has high purity limestone that is used in things like antacids and toothpaste,” he stated.

Meanwhile, Green informed the country that 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.

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

“Having met with these companies, they have already indicated promising results. C3 Metals have reported encouraging signs of possible large copper deposits and is moving to further exploration. If these partnerships uncover commercial-scale deposits, this country will reap great returns. Not only will we see increased export earnings but we will significantly benefit from the revenue generated through imposed taxes and the collection of royalties,” Green said.

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The new phase carries an allocation of $400 million and will continue to support agriculture, education, infrastructure, and community development initiatives across Jamaica’s traditional bauxite producing parishes.

Speaking during the launch and 30th anniversary celebration at the Ministry of Agriculture, Fisheries and Mining’s playfield, Hope Gardens, St. Andrew, on Wednesday (March 4), Portfolio Minister, Hon. Floyd Green, reflected on the significance of the milestone, observed under the theme ‘BCDP at 30: Building Communities and Empowering Futures’.

“[This has been] one of Jamaica’s most transformational initiatives. As you have heard from the theme… we have been about building communities and empowering futures,” he said.

Mr. Green explained that the programme was established to ensure mining revenues are reinvested in host communities.

“Whatever wealth that we generate from our mining industries, we have to have a structure to ensure that that wealth finds its way back into the communities. The BCDP has been that structure,” he added.

The Minister noted that over the past three decades, the programme has supported projects in agriculture, education, and healthcare.

Shifting focus to the agricultural thrust under Phase VIII, Mr. Green highlighted the continued rollout of protected farming, with expanded greenhouse clusters being established across several communities.

“We plan to establish an additional 80 greenhouses, possibly as many as 120, organised into clusters across 12 communities, with 10 greenhouses in each community,” the Minister stated.

Mr. Green also highlighted ongoing recovery efforts in communities following hurricane damage.

“Coming from Hurricane Melissa, about 91 of our greenhouses that we established were damaged. As such, under the Ministry’s Hurricane Recovery Fund, we’re allocating $66 million to repair all of those greenhouses so we can have those clusters functioning again,” the Minister said.

Meanwhile, in the area of education, Mr. Green highlighted the expansion of tertiary support for students from mining communities.

“We issued 14 scholarships in 2023, and in this phase, we’re going to be ensuring that 30 youth from across our bauxite mining communities get their dream of pursuing tertiary education fulfilled through these resources. We have to train the next generation of mining professionals,” he stated

In the meantime, Minister Green emphasised the importance of transparency in project implementation.

“We are trying to ensure that in this future of mining, transparency and accountability are at the forefront. We don’t want you to guess where the resources are being spent and the sort of impact we’re having,” he added.

In his remarks delivered by BCDP Advisory Board Member, Samara South, Jamaica Bauxite Institute (JBI) Chairman, Dave Powell, noted that Phase VIII builds on three decades of structured investment.

“Phase VIII represents a forward thinking step in that direction. Programmes of this magnitude do not succeed with financial allocations alone… they endure and flourish because of the people,” he said.

Mr. Powell emphasised the governance framework guiding project selection, noting that “projects are not selected casually or arbitrarily”.

“They are subject to rigorous assessment, informed by consultation with community groups and Members of Parliament. [They are also] grounded in field observation, elevated against the proximity to mining operations, scrutinised for cost efficiency and critically measured by income-generating potential and capacity-building impacts,” he further stated.

Highlighting the scale of agricultural achievements under the programme since 2010, Jamaica Social Investment Fund (JSIF) Managing Director, Omar Sweeney, noted that more than 180 greenhouses have been developed, with more than 800 farmers ultimately set to benefit from the initiative.

“As long as we can remain successful, this programme will grow until we have sheltered infrastructure greenhouses in every single parish across Jamaica,” he stated.

The Bauxite Community Development Programme, administered by the Jamaica Bauxite Institute, continues to serve as a central mechanism for channelling mining derived resources into community transformation and fostering long term resilience.

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“Jamaica may be far from the Middle East geographically, but it is closely tied to global markets,” the institute said. “The disruption in the Strait of Hormuz is a reminder that when energy flows are threatened, the effects are felt everywhere, from petrol prices to industrial production.”

Roughly one-fifth of the world’s oil passes through the strait daily which borders Iran. Even without a complete shutdown, tankers are already rerouting, insurance premiums are climbing, and energy markets are pricing in the possibility of prolonged conflict.

NO MARGIN FOR ERROR OR PROFIT

Jamaica’s sector depends heavily on imported fuel to sustain it. As global oil and gas prices rise, those costs flow directly into production overhead. The institute warned that the pressure is compounded by the industry’s reliance on caustic soda – another key input whose price tends to track global energy costs – and by freight rates and marine insurance premiums, both of which have risen sharply as geopolitical risk increases the cost of moving raw materials and finished goods across shipping lanes.

The net effect, the institute said, is a significant increase in production costs, regardless of whether demand holds steady. Latest export figures show a quarter over quarter decline. Alumina exports totalled 374,266 tonnes in the September quarter of 2025, down 5.3 per cent from the previous quarter but 13 per cent higher year-on-year, according to JBI statistics. The monetary value of those exports was not immediately available. The bauxite and alumina sector earned US$760 million in 2024, one-third more than in 2023, according to the Planning Institute of Jamaica. At its peak in the 1970s and 1980s, Jamaica was among the world’s leading bauxite producers. Output has since declined as a share of the economy, but the industry remains a pillar of the island’s manufacturing base and a key source of foreign exchange.

A PARTIAL OFFSET WITH CONDITIONS

The institute said that energy shocks are not uniformly negative for the sector. Higher global energy costs tend to push up the price of aluminium and alumina on world markets, as producers everywhere face similar cost pressures. In some scenarios, stronger selling prices can partially offset the rise in production costs.

“The overall impact depends on how quickly the market stabilises and how long the disruption persists,” the institute said.

That caveat carries weight. A short, sharp shock may be manageable. A protracted conflict, with continued pressure on Gulf shipping lanes would be a different matter, cutting into margins for an extended period while the price offset takes time to filter through, it reasoned.

INFLATION

The institute’s concern extends beyond the refinery gate. Higher energy prices translate into elevated electricity costs and increased transportation expenses across the Jamaican economy. Few sectors remain untouched, the institute said, making the Hormuz disruption as much a macroeconomic concern as an industrial one.

“Prices are increasing not just because of current supply risks, but because markets are pricing in the possibility of prolonged disruption,” stated the JBI.

The Bank of Jamaica held its benchmark interest rate at 5.50 per cent last month, citing heightened uncertainty stemming from the Middle East conflict and its effect on global commodity prices, particularly oil and liquefied natural gas. The central bank warned that domestic inflation, which came in at 3.9 per cent in February, could rise above its 4.0 to 6.0 per cent target range during the year.

THE STRUCTURAL QUESTION

The institute framed the current crisis as more than a short-term test, arguing it exposes a vulnerability that predates the current conflict and will outlast it.

“Jamaica cannot remain this exposed to external energy shocks,” the institute said, calling for a deliberate shift towards greater use of more stable energy sources, including liquefied natural gas, accelerated investment in renewables, and a sustained focus on energy efficiency across the alumina-refining sector. “For an industry as energy-intensive as alumina refining, competitiveness will increasingly be determined not just by market prices, but by how effectively energy risks are managed.”

Jamaica last month launched a bid for investors to build and operate 220 megawatts of renewable energy capacity on the island, along with storage, as the Government pushes towards a target of generating half of its electricity from renewable sources by 2030.

Globally, countries are already adjusting, the institute noted, with some turning to “coal” to meet short-term energy needs, others drawing on oil reserves, and governments exploring alternative supply routes. Jamaica, it said, must pursue its own version of that recalibration.

“These global shocks may be inevitable,” the institute said. “How Jamaica prepares for and responds to them will determine how well we weather the storm.”

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Speaking in the House, Minister of Finance and the Public Service, Hon. Fayval Williams, explained that the Jamaica Bauxite Institute (JBI), established in 1975, is the government agency responsible for oversight, planning and development of Jamaica’s bauxite and alumina sector.

She noted that the Bauxite Community Development Programme was launched in October 1996 with a clear mandate to support long-term, sustainable development in communities affected by bauxite mining and alumina processing.

Funds for this programme are allocated for creating employment opportunities as well as social and infrastructural development for these communities. Administration of the programme rests with the JBI, guided by a steering committee comprising representatives from both the Institute and the relevant portfolio ministry. Each programme phase typically spans two to three years.

Mrs Williams confirmed that the CDF, which is historically funded by the bauxite production levy, has sufficient resources to permit a USD 400 million withdrawal for the 2025/26 financial year. She added that, as of 31 July 2025, the JBI held USD 13.1 million for the programme following the completion of Phase 7.

During the 2024-25 financial year, the Bauxite Community Development Programme carried out 23 projects across Manchester, St Ann, St Elizabeth, St Catherine, Clarendon and other bauxite-producing parishes, at a total cost of USD 110.4 million. A further five projects, costing USD 28.93 million, have been undertaken so far in the 2025-26 financial year.

Mrs Williams stated that an additional USD 400 million is essential for the JBI to deliver Phase 8, which will focus on strengthening livelihoods, improving community infrastructure and advancing broader socio-economic development across the bauxite-producing parishes.

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Net Earnings
Net earnings aggregated to ~US$84.01 million in Q3 2025, reflecting a marginal 0.4% quarterly gain and a robust 35.4% rise YoY, driven by sustained growth in local cost inflows (+0.5% QoQ; +35.7% YoY). Royalty payments declined 9.8% from Q2 but remained 9.5% higher than the corresponding period a year ago. Year-to-date net earnings amounted to US$246.63 million, up 24.3% compared to Q3 2024, underscoring sustained profitability despite market headwinds.

Total Receipts (US$ ‘000) – Local Bauxite/Alumina Sector

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Year-to-date capital outlay amounted to ~US$31.42 million, up 60.8% over the same period in 2024, supported by the bauxite/alumina companies’ project rollouts and consistent investment activity.

Capital Expenditure (US$) – Local Bauxite/Alumina Sector

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Bunker ‘C’ remained the dominant fuel, totaling 622,288 barrels, a 7.1% quarterly drop but slightly above Q3 2024. Diesel oil usage fell sharply by 33.8% to 31,049 barrels, while recycled fuel declined 27.3% to 4,999 barrels. There was no LNG consumption in the reporting period, contrasting with 5,173 barrels in Q2. Ultra-low sulfur diesel held steady at 1,018 barrels but was down 14.9% YoY.

The industry achieved better fuel efficiency in Q3 2025, as the utilization rate fell to 1.872 barrels per tonne, improving 6.7% QoQ and 2.4% YoY. Year-to-date oil consumption reached ~2.16 million barrels, up 7.4% from 2024, while the average rate of usage rose 9.8%, signaling persistent energy intensity despite Q3 efficiency gains.

Fuel Consumption (bbl) – Local Bauxite/Alumina Sector

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