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Caribbean Islands Industry
Mining
In spite of its relative decline, during the 1980s mining
remained the most important sector of the economy in terms of
foreign exchange (see fif.___, Mining and Related Activities).
Bauxite was by far the most dominant mineral and subsector in the
economy. The mining of bauxite had generated over 50 percent of
export earnings since the 1960s. Nevertheless, bauxite production
was declining and output in 1985 equaled 6 million tons, only half
of the 1980 level (see table __, Bauxite and Alumina Production and
Exports (1980-1985), Appendix A). As bauxite exports declined and
receipts from tourism increased in the 1980s, it seemed possible
that tourism might replace bauxite as the greatest foreign-exchange
earner.
Although a large foreign-exchange earner, bauxite production
represented only 5 percent of GDP in 1985 and employed under 1
percent of the labor force. The very capital-intensive nature of
the industry made it a controversial subsector because of the high
rates of unemployment on the island. Likewise, the large presence
of North American aluminum companies extracting the ore was also a
prominent issue.
Bauxite was first produced commercially in Jamaica in 1952 by
Reynolds Metals Ltd. In only six years, Jamaica became the largest
producer of bauxite in the world. It retained this position until
1971, when it was surpassed by Australia. In the late 1980s,
Jamaica ranked third in worldwide production behind Australia and
Guinea and accounted for roughly 13 percent of world output of
bauxite and 7 percent of alumina. During the first half of the
1980s, Jamaican bauxite production declined drastically as half of
the six North American companies ceased production or left the
island completely, and world prices for bauxite entered a prolonged
depression because of oversupply. The departure of foreign
companies encouraged the government to buy into the bauxite
industry, and by 1986 the government-run Clarendon Aluminum Plant
was the most successful producer on the island.
Jamaica's bauxite reserves are large, exceeding 1.5 billion
tons. At the present rate of extraction, reserves could last
another 150 years. Jamaica's bauxite is not extremely alumina pure;
one ton of Jamaican bauxite contains only about 0.4 tons of
alumina. The island's bauxite comparative advantage lies in the
easy extraction of the metal ore as a result of its close proximity
to the surface.
Although generally beneficial for the economy, Jamaica's
bauxite industry must import large amounts of caustic soda and
heavy machinery to mine and export the ore, making the industry
highly import intensive. Likewise, the mining of the ore has raised
environmental concerns over bauxite by-products discharged in
highly visible red lakes.
Jamaica also has significant reserves of several other
commercially viable minerals, including limestone, gypsum, silica,
and marble. Limestone covers about 80 percent of the island, making
the total estimated reserves of 50 billion tons virtually
inexhaustible. Certain limestone reserves are of very high quality.
Nevertheless, limestone production has been rather small and
extremely dependent on external market forces. Although 83,000 tons
of limestone were exported in 1984, none was exported in 1985, and
estimates for 1986 were placed at close to 100,000 tons.
Gypsum, mined in eastern Jamaica since 1949, was the second
most important mineral in the 1980s. Reserves of at least 80
percent purity amounted to over 4 million tons out of total
reserves exceeding 40 million tons. Some gypsum was used in the
local manufacturing of tiles and cement, but over 90 percent of the
mineral and its derivative, anhydride, were exported unprocessed to
the United States and Latin America. Jamaica normally produced
roughly 180,000 tons of gypsum a year.
Data as of November 1987
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