The House of Representatives has approved the withdrawal of $268.48 million from the Capital Development Fund (CDF), to provide budgetary support to the Jamaica Bauxite Institute (JBI) for the 2022/23 financial year.
In his remarks on July 5 in the House, Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, said the JBI was established by the Government in 1975 as a regulatory planning and development agency, to manage the sovereign aspects of the Government’s participation in the bauxite alumina industry.
He pointed out that the JBI is responsible for monitoring and studying the alumina industry and advising the Government on matters pertaining to the industry, locally and internationally.
Dr. Clarke informed that the organisation is primarily funded from levies on the bauxite industry through the CDF.
“The JBI’s primary operations are not revenue-generated activities. However, over the years the JBI has expanded its operations to include the provision of laboratory services on a commercial basis to generate some revenue,” he noted.
Dr. Clarke said that the JBI continues to contribute to the bauxite and alumina industry in Jamaica through research and continued monitoring, which encourages bauxite companies to remain compliant with applicable laws and regulations.
During fiscal year 2021/2022, in carrying out its regulatory responsibilities, the JBI participated in eight environmental performance meetings and analysed 337 commercial samples from different categories, including water samples from the areas around the bauxite plant and residue disposal areas, to ensure the bauxite operations remain environmentally sound.
Additionally, the JBI assisted the JISCO Alpart plant by conducting simulation test on bauxite samples from its mines, to assess whether it can be processed, and the effectiveness of chemical additives on the proceeds.
“The results of these are expected to assist JISCO Alpart in restarting refinery operations following their closure in 2019,” Dr. Clarke said.
He informed that for the fiscal year 2022/23, total budgetary support for the CDF is expected to cover approximately 73 per cent ($268.48 million) of the JBI’s operating expenditure of $367 million.
The Minister said the JBI has been granted budgetary support totalling $1.2 billion from the CDF during the five-year period 2017/18 to 2021/22.
The balance in the CDF as at the end of the 2021/22 fiscal year was $3.8 billion, which is adequate to provide the support required for the JBI in 2022/23.
“This amount, $268.48 million, was also included in the approved Jamaica Public Bodies Estimates of Revenue Expenditure for the year ending March 2023,” Dr. Clarke stated.
“We are committed to only withdraw from the CDF, in line with the Bauxite Production Levy Act to facilitate the budgetary support of the JBI,” he added.
