Xinfa Group Company to invest US$3 billion in Reynolds Bauxite Mines in Lydford, St Ann - Sapphire Production a better bet as the World’s flooded with Aluminium

“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”

Minister Paulwell in opening Statements in the Sectoral Debate in the House of Representatives on Tuesday May 6^th 2014

So Dr. Vincent Lawrence is coming to save the 381 MW Project as reported in “'God' returns”, published Wednesday, May 07, 2014 BY BALFORD HENRY Senior staff reporter, The Jamaica Observer.

In the process, he’ll clean up the now widening Scandal created yet again by Minister of Science, Technology, Energy and Mining Paulwell so that the PNP can win the General Elections coming up in 2016 as predicted in my blog article entitled “Dr. Vincent Lawrence to oversee the 381 MW LNG Project - All powerful Essene Brotherhood to Resurrect PNP General Election 2016 Win like Osiris”.

But in the brouhaha, many didn’t realize that before handing over the reins of the project to Dr. Vin Lawrence and his six (6) man posse, Minister Paulwell had signed an MOU (Memorandum of Understanding) with Xinfa Group Company with an eye to take over the Reynolds Bauxite Mines in Lydford, St Ann as reported in “Chinese firm to build new alumina plant in Jamaica”, published Tue May 6, 2014 8:03 pm, RJR News.

But this is more than just the rehabilitation of an old Bauxite Mine or the Building of another Bauxite Mining operation to the tunes of US$3 billion. This deal is akin to the deal struck with Russian owned UC Rusal back in 2010 for the acquisition of Ewarton Mines owned by WINDALCO as stated in “Bauxite industry deal struck”, published Wednesday, October 03, 2012 BY SHAMILLE SCOTT Business reporter, The Jamaica Observer.

The GOJ (Government of Jamaica) has since solidified a deal with UC Rusal which will see them getting a two (2) year concession on paying the Bauxite Levy in exchange for them building a Coal-Fired Refinery to refine Bauxite into Alumina as stated in “Gov’t and UC Rusal to Conclude Discussions on Bauxite Plants”, published May 7, 2014 By Andrea Braham, The Jamaica Information Service and “UC Rusal granted additional two-year bauxite levy concession”, published May 7, 2014, RJR News.

Xinfa Group Company has to also construct a Coal-Fired Alumina Refinery and will give China more dominance in the Alumina Market, further depressing the price of Alumina on the world Market!

Effectively, these two (2) arrangements are heralding Jamaica’s push from just the export of Raw Bauxite towards making Refined Alumina or Aluminium Oxide (Al₂O₃) as stated in “St Ann could get Coal-fired refinery”, published Thursday May 8, 2014, by Daraine Luton, Senior Staff Reporter, The Jamaica Gleaner.

It also heralds the coming of Coal as a power Source to make Alumina production cheaper as stated in “Coal Power To The Rescue”, Published Sunday May 11, 2014, by Daraine Luton, Senior Staff Reporter, The Jamaica Gleaner.

Coal-Fired Alumina Refineries – Sapphire Production a better bet as the World’s flooded with Aluminium

The usual export of Bauxite companies such as JAMALCO is powdered Alumina, which is refined elsewhere in the US of A into Aluminium Ingots. If this project pushes forward like the UC Rusal agreement, it’ll mean a re-opening of the Reynolds Bauxite Mines in Lydford, St Ann and re-employment of many laid-off from the ALPART.

Based on Media reports from Traditional Media, the deal with the Xinfa Group Company would see:

1.      Two (2) years Waivers in paying over Bauxite Levy in exchange for building a Coal Fired Power Plant

2.      25 year Bauxite Mining license

3.      4.5 million tonnes of bauxite annually for 25 years

4.      2 million tonnes of Alumina annually for 25 years

Despite the claims of Minister Paulwell, the construction of Coal Plants, no matter how clean, will present problems with the US Government.

A spokesperson from the US State Department's Bureau of Energy Resources confirmed during a working tour in Washington under the theme “The Future of Energy in the Americas” have already made it clear that the use of Coal would see Jamaica not getting support from the World Bank and other International Multi-Lateral Lending Agencies as stated in “US says it will not support any J'can Coal-powered activity”, Published Sunday March 16, 2014 by Christopher Serju, Gleaner Writer, The Jamaica Gleaner.

The process for producing Bauxite is the Bayer Process and involves four Stages:

1.      Digesting

2.      Clarification

3.      Precipitation

4.      Calcination

The final product of Calcination is Alumina powder, or Aluminium Oxide (Al₂O₃), which is made from dehydrating Alumina Trihydrate (Al₂O₃.3H₂O). They will still export Aluminium Oxide (Al₂O₃), as the Reynolds Bauxite Mines in Lydford, St Ann are estimated to contain some 50 years of reserves.

This makes it possible to export 4.5 million Tonnes of Raw Bauxite and 2 million tonnes of Alumina as stated in the article “St Ann could get Coal-fired refinery”, published Thursday May 8, 2014, by Daraine Luton, Senior Staff Reporter, The Jamaica Gleaner suggests.

It’s still my opinion that rather than go the smelting route or even exporting Alumina, the Government of Jamaica should makes the Alumina into Sapphire for export.

Alumina or Aluminium Oxide (Al₂O₃) is just a powdered polycrystalline form of Sapphire, the same chemical formula as pointed out in my blog article entitled “Sapphire Screens for smartphones by Q1 2014 - Unscratchable Sign of Virgo is the Man of Steel to revive Jamaican Alumina Industry”.

There is already an excess of Alumina on the market, which would mean that even if Xinfa Group Company and UC Rusal managed to use cheap energy from Coal to smelt Aluminium Oxide (Al₂O₃) into Aluminium, there would already be a glut of Alumina on the World Market, meaning that the Aluminium would sell for little or nothing.

So a push towards a Sapphire Plant and not an Alumina Refinery is the way to go, as if Apple is ramping towards a using Sapphire extensively for their Apple iPhone and possibly the Apple iPad as stated in my blog article entitled “Apple and GT Advanced Crystal Technologies building Sapphire Plant in Arizona – Arizona people working to coat Apple iPhone in Unbreakable Sapphire with possible Jamaican Bauxite Industry Revival coming”, then it may mark the TRUE revival of the Alumina Sector, as we can make Sapphire here in Jamaica!