A recent article from Bloomberg, the business and markets focused media company with a global following, has brought the resurgence of Jamaica’s bauxite industry into the limelight.
The island’s mining revival is “turning Jamaica’s red earth to gold for a new set of investors from hedge fund luminaries to commodity traders”, the story reads.
The frailty of the international aluminium industry’s supply chain illustrated by a shutdown of the world’s largest alumina refinery in Brazil because of an environmental dispute as well as worries over international sanctions against Russian aluminum company, United Co Rusal, is panicking traders.
According to the article, the Jamaican bauxite industry stands to benefit from the present situation as it offers an alternative solution to the current problem areas in the supply chain.
Trading house, Concord Resources Ltd, became a minority stakeholder in New Day Aluminum Holdings LLC which owns a Jamaican bauxite mine and Bloomberg quotes its chief executive, Mark Hansen as saying, “Jamaica has several strategic advantages that had been overlooked on the downcycle. It has come full circle from where it was five years ago.”
The article lists a number of investors who are banking on the island’s alumina industry. They include Chinese mining giant, Jisco, which owns a plant in Jamaica and Wes Edens’ New Fortress Energy which introduced liquefied natural gas terminals on the island as a new source of power for aluminium production.
Also included are Dada Holdings of which New Day Aluminum LLC is an affiliate as well as Varde Partners and Owl Creek Asset Management which has controlling interests in Jamalco.