Jamaican government negotiating with US to continue smooth operation in Rusal's Windalco Plant

Jamaican government is undergoing discussions with the United States Treasury Department to secure a waiver for Jamaica as the Administration moves to address any fallout from US sanctions against UC Rusal which has alumna/bauxite operations in Jamaica.

“The talks are progressing favourably, but we cannot offer any guarantees at this time,” said Mining Minister Robert Montague told the House of Representatives in a statement on Tuesday.

The sanctions against Rusal announced by the US in April, will affect operations at the Windalco Plant in Ewarton.  West Indies Alumina Company or WINDALCO is a joint venture between the UC Rusal and the Government of Jamaica. UC Rusal owns 93% stake and manages the joint venture, while the government owns the remaining 7% share.

Windalco comprises two alumina plants – Ewarton Works in St. Catherine and Kirkvine Works in Manchester. The company owns bauxite mines in Schwallenburgh (Ewarton) and Russell Place (Kirkvine) and farms in Manchester and St Ann.

The sanction may cover non-US persons for knowingly facilitating significant transactions for, or on behalf of the individuals or entities sanctioned by the US.  On April 23, the U.S. Treasury Department announced that Americans can wait until Oct. 23 to wind down business with Rusal. However, it is yet to provide a full brief on the extent to which UC Rusal has complied.

Montague indicated that the Government will employ its best efforts to ensure that Windalco is supplied fuel, chemicals and other necessary items for operations.

“Best efforts will also be made to engage and ensure the banking sector’s support. We have also taken steps to assure the banking sector on any issue or fears, based on information,” he said.

The Ministry is working with Jamaica Bauxite Institute and the Ministry of Finance and the Public Service to get ready for any contingencies.

“We are well aware of the sensitivity of the matter, and I assure you that this Government remains committed to protecting the interests of the Jamaican people. As we continue to monitor this dynamic situation, we will continue to provide updates to the House. We must remember to remain calm, and keep the lines of communication open,” Montague said.

He reiterated Government’s main concern of saving approximately 1,200 jobs at Windalco and the livelihood of a further 10,000 indirectly associated persons from communities near the alumina plant and related facilities.