New Day bauxite partnership in Jamaica on hold over Cockpit boundary markings

A senior mining official from Jamaica is urging the quick resolution of the Cockpit Country boundary markings to determine the areas where bauxite companies can mine for bauxite. He says it is stopping the completion of partnership agreements with New Day Aluminium Jamaica Limited, which an affiliate of Dada LLC, the company that acquired Noranda's stake in the St Ann Bauxite Limited in October 2016 and continues to operate the mines as Noranda Alumina.

The official said that without the partnership agreements, which cannot be possible without the resolution of the Cockpit mining issue, Jamaican representatives cannot take their seats on the New Day Jamaica board. P.M. Andrew Holness’ administration is expected to finalize the boundaries at a Cabinet meeting next month.

Cockpit Country boundaries are to be drawn to protect the estimated 1,099 square kilometres of tropical rainforest, while allowing mining companies to mine bauxite around the area.

The source said the boundaries suggested by environmental lobbies are extensive, and if accepted by the Government, Noranda Alumina would have no area to mine bauxite.

Diana McCaulay, CEO of the Jamaica Environment Trust (JET), said that since the government allows New Day to mine at St Ann in Jamaica the push will be coming from mining interests to reduce the new boundaries so that bauxite can be supplied to Noranda.

The Cockpit is mostly in the parish of Trelawny, but also borders on St James, St Elizabeth and St Ann. New Day owns a minority 49 per cent of the St Ann bauxite operation, acquired from Noranda Aluminum Holding Corporation to operate as a managing partner.

He also wants more lands freed up for mining, saying exports of the ore are on the decline. At one point, the bauxite/alumina sector constituted nearly 70 per cent of exports for Jamaica, but that has now fallen to 46 per cent, he said.

The mining official also wants more lands to be freed for mining as the share of bauxite/alumina sector in Jamaica’s export has dropped to 46% from 70% at one point of time.

According to New Day's Chief administrative officer Anthony Laura, Noranda bauxite production has dropped to 2.6 million tonnes from a maximum 4.6 million tonnes when Sherwin was operating. New Day Jamaica has an initial 25-year renewable lease with the Government of Jamaica (GOJ) under which, the company would  either pay the Government US$ $1.50 per tonne of bauxite mined or a specified share of the profits, whichever is greater. Under the agreement, New Day will invest US$35 million in the operation over the next five years.

Regarding the Cockpit boundaries, he said New Day would refrain from comment "until the issue is resolved in Cabinet".

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