Minister of Transport and Mining Audley Shaw said there was a 37 per cent decrease in the collection of royalties from bauxite mining due to operational challenges experienced across the sector.
For 2022/2023, $360 million was collected, representing a 37 per cent decrease when compared to 2021/2022. The Minister said that $350 million in royalty collection is forecasted for 2023/2024 in consideration of the current operating climate of the sub-sector.
Shaw made the disclosure during his contributions to the 2023/2024 Sectoral Debate yesterday (May 9), when he provided updates on the work being done in the mining sector.
Though there was a decrease in the collection of royalties from bauxite mining, the Minister said that J$124 million in quarry taxes were collected from quarrying for the financial year 2022/2023, a 10 per cent increase over the amount collected in 2021/2022.
“Quarry tax projection for 2023/2024 are approximately $110 million, based on the continuous growth of the Construction Sector, among other factors,” said Shaw.
Mined-out bauxite ore bodies rehabilitated
The Mines and Geological Division (MGD) is responsible for ensuring that all taxes and royalties payable to the Government are collected within the specified periods. In addition to financial collections, the MGD ensures that mined-out lands are properly rehabilitated according to established standards for environmental management.
Shaw shared that for 2022/2023 approximately 258 hectares, or about 638 acres of mined-out bauxite ore bodies were certified as rehabilitated.
“Since the start of Jamaica’s Bauxite industry, 10,541 hectares of land have been allocated for mining. Of this amount, 7,725 hectares have been rehabilitated. The remainder represents lands that are either currently being mined or are in the process of being rehabilitated,” said the Minister.
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