KINGSTON, Jamaica, CMC – The Jamaica government has agreed to provide the bauxite and alumina production company, Windalco, with a two-year relief from the payment of the bauxite production levy, saying that the move will save the jobs of hundreds of Jamaicans.
Finance and Public Service Minister Dr. Nigel Clarke said that as a result, the government would forego an estimated US$10 million in levy payments from the company, which is a subsidiary of the Russia-based UC Rusal.
Clarke told Parliament that the waiver “is about jobs and foreign exchange,” adding, “Without a waiver, the plant would close, relatively high-paying jobs will be lost, and growth will take a hit.”
He said that Windalco employs 600 persons directly and 1,187 others indirectly.
“During the waiver period, the jobs at Windalco will be maintained. Windalco has committed to producing alumina in terms of volume at a level that is 10 percent higher than what was produced in 2022. We will also seek, during this period, to revise the bauxite production levy regime to make Jamaica more competitive in this industry.”
Clarke told legislators that the period of the waiver would allow Windalco “the latitude it will need to put in place the systems to make their business viable” and that the company has been faced with severe challenges in the past few years, including an extremely high cost for producing alumina, coupled with the “very uncompetitive” price for the product on the world market.
“As such, Windalco has experienced significant losses. These losses have persisted, and without significant adjustments to the cost structure of the operations, the only fully privately operated bauxite alumina company would have to close down,” Clarke said.
He said the government would ensure that a payment schedule is developed for all outstanding amounts owed by Windalco for bauxite levy accruing from previous periods.
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