A rebound in alumina production will help offset a drop in economic growth in Jamaica in 2022-23, following the suspension of one of the country’s main alumina plants.

This rebound is predicated on the resumption of production at the 1.42 million tonne JAMALCO alumina plant in Halse Hall, Clarendon, which was closed due to a fire at its power plant last August but has recently resumed operations.

Jamaica’s alumina production slipped to 1.20 million tonnes last year, down from 1.62 million tonnes in 2020, according to the latest US Geological Survey data, while bauxite output fell to 5.80 million tonnes, down from 7.55 million in 2020.

Jamaica has the fifth biggest reserves of bauxite globally at 2.0Bt, after Guinea, Vietnam, Australia and Brazil. Jamalco is a 55:45 joint venture between General Alumina Jamaica, a member of the Noble Group, and Clarendon Alumina Production, which is controlled by the Jamaican government.

The Bank of Jamaica (BOJ) is projecting economic growth of 2.5 per cent to 4.5 per cent for the fiscal year ending March 2023, with the expansion driven mainly by the services industry and tourism.

“The forecasted growth also reflects the recent resumption of production at the Jamalco alumina plant,” BOJ Governor Richard Byles said in a recent statement on Jamaica’s monetary policy position.

The forecast growth is lower than the 5.7 per cent estimated for the second quarter, which was spurred by a 7.7 per cent expansion in services following the lifting of some COVID-19 restrictions.

Goods output contracted by 0.4 per cent amid a 60.6 per cent decline in the mining and quarrying sector, as alumina output dropped 76.8 per cent, while bauxite production increased 8.8 per cent.