Monday, May 7, 2012
PM Portia Simpson Milller ALCOA Talks hint at LNG - Lady Gaga's Paparazzi in Jamaica's Bauxite Sector
It seems that JAMALCO may soon be returning to boom time yet again.
This as talks with ALCOA (Alumina Company of America) executives by the Prime Minister Portia Simpson Miller who is on state business in the United States of America were quote “fruitful” as described in the article “ALCOA talks fruitful – PM”, published 2012-04-26 12:50:42 by Go-Jamaica.com.
Minister of Energy and Mining Phillip Paulwell most likely spearheaded the meeting with assistance from Chairman of Clarendon Alumina Partners, Dr. Vin Lawrence and Mining Industry expert Dr. Carlton Davis.
This is interesting, as the last two (2) gentlemen would have sufficed, suggesting that possibly the discussion was not purely about Bauxite, but may have involved discussing aspects of using LNG (Liquid Natural Gas) in the operations at JAMALCO (Jamaica ALCOA Company).
At the very least, it may also herald a deepening of the partnership between the Government of Jamaica and ALCOA (Alumina Company of America) in a bid to increase revenues from the venture and in the process secure jobs of the employees on the Plant.
Thus this one word statement is usually a coy play at the Media that gives away little but betrays much, as it does mean progress is being made, albeit very little in the immediate term but much in the short term.
Another article reveals a little more in the form of a comment from ALCOA executives in the article “PM Simpson Miller hold talks with Alcoa executives”, published April 27 2012, RJR News Online quote: “A path had been established for the future viability of the company’s operations in Jamaica.”.
This path may possibly include, from a Mining standpoint:
1. ALCOA increasing its stake in the Bauxite industry by acquiring the other Bauxite assets in Nain, St. Elizabeth, WINDALCO’s assets in Kirkvine, Manchester and Ewarton in St. Catherine.
2. Increasing its usage of Alternative Energy on the Plant via a partnership with Green RG in Jamaica to make Solar Power Gear as is a possibility from my Geezam blog article entitled “Green RG in Jamaica to make Solar Power Gear” and my blog article entitled “Solamon Energy Corp & Green RG invest in Jamaica's Alternative Energy Future - Let the Cheaper Energy Hunger Games for Latin America Begin”.
3. Tapping additional deposits of Alumina in the Cockpit Country via negotiations with the Maroons on whose lands these deposits lie
4. Diversification of the company into Rare Earth Metal Mining as the Bauxite ore in Manchester Mines is rich in these metals
5. Gold Mining in
does indeed have Gold as chronicled in my blog
article entitled “AUSJAM
and the Pennants Gold Mine Rush - King Solomon's Mines in Clarendon”
Not much to go on, but it reveals a lot.
For Bauxite to be viable in the currently volatile market for alumina, production costs have to be lowered. This means that the major source of expenditure in the production of Bauxite needs to be reduced: Energy. This was a part of the original plan expressed by the previous Minister of Energy and Mining Paul Robertson.
In fact, it was originally the suggestion of PM Portia Simpson Miller to have LNG as a major cost reducing component for the Bauxite Industry in Jamaica to make Bauxite production profitable and possibly introduce Alumina Smelting i.e. the production of the finished product alumina as stated in my blog article entitled “LNG from Trinidad and Tobago and the Energy Security of Jamaica”.
But one thing is for certain: JAMALCO will not get LNG until after the LNG Power Station is built in Old Harbour, St. Catherine as declared in my Geezam blog article entitled “JPS Co to build Jamaica’s first Gas Turbine Power Plant in St. Catherine” as well as blog article entitled “Senator Phillip Paulwell chooses LNG over Coal - Power Engineers in Stephen King's Graveyard Shift”.
This of course won’t be until 2015AD!
Even the securing of the supply of LNG crucial to securing the financial support from the JPS Co for the joint construction of this first step towards Energy Sector Liberalization and Diversification is fraught with some uncertainty.
The ball is in the GOJ’s court to secure a steady supply of LNG as opined my blog article entitled “Phillip Paulwell wants Full Energy Sector Liberalization – JPS Co’s Dan Theoc holding on to his Hard End” which puts the total cost of the LNG Plant is estimated to be J$52 billion (US$602 million), of which JPS Co is investing US$616 million (J$53 billion).
By 2015AD, when the Old Harbour Plant is complete, it will then be JAMALCO’s turn to reap the benefits the lower pricing point of the fuel. At which points it’ll be All Fruits Ripe for JAMALCO increased profitability in the Aluminium production here in
the GOJ reaping the benefits of increased revenues and a stable Alumina Sector.
This as Aluminium prices as set to ramp up in the next five (5) years due to the increasing demand for All-Electric Vehicles, the smartphone of automobiles as prophesied in my blog article entitled “US Automobile Industry Resurgence and Jamaica's Bauxite Industry - Scrap Metal Industry Renaissance”.