Jamaica is facing the
threat of a decline in earnings from alumina exports due to a sharp drop in the
price for aluminium on the world market.
Aluminium, which is derived from alumina, has plunged from US$3,400 per ton in July to US$2,300.
The decline has been linked to the slowdown in the global economy.
According to Dennis Morrison, executive at the Jamaica Bauxite Institute, this is not good news for Jamaica which earns a significant amount of foreign exchange from alumina exports.
"Aluminium prices which also reached a record in July, have fallen over the period and if that continues then our alumina prices which are linked to aluminium prices, would be reduced and that would have a negative impact on Jamaica's foreign exchange earnings and on balance of payments," he said.
The country earned US$1.3 billion from the bauxite and alumina sector last year.
Aluminium giant, Alcoa, says despite volatile and uncertain markets, it is optimistic that longer term trends will drive a rebound in global demand.
Aluminium, which is derived from alumina, has plunged from US$3,400 per ton in July to US$2,300.
The decline has been linked to the slowdown in the global economy.
According to Dennis Morrison, executive at the Jamaica Bauxite Institute, this is not good news for Jamaica which earns a significant amount of foreign exchange from alumina exports.
"Aluminium prices which also reached a record in July, have fallen over the period and if that continues then our alumina prices which are linked to aluminium prices, would be reduced and that would have a negative impact on Jamaica's foreign exchange earnings and on balance of payments," he said.
The country earned US$1.3 billion from the bauxite and alumina sector last year.
Aluminium giant, Alcoa, says despite volatile and uncertain markets, it is optimistic that longer term trends will drive a rebound in global demand.