Mining Journal reported that Jamaica based West Indies Alumina Company whose majority shareholder is UC RUSAL of Russia has suspended bauxite mining as part of a plan to temporarily shutter the Jamaican company's operations due to a world downturn in demand.

Windalco employs 1,119 people and produces 1.2 million tonne per year of alumina at its two plants in Kirkvine in the south central region and Ewarton in the north east. Alumina, from which aluminum is made, is processed from bauxite ore.

Mr Paul Anderson veteran Windalco employee said that "We stopped mining yesterday and we don't know how long this will continue." Windalco had announced earlier this year it would suspend production of bauxite and alumina for one year initially, due to the fall in demand for the products worldwide, caused by the global recession.

About 850 workers would be affected by the suspension but the company had decided to keep them on the payroll working reduced hours on reduced pay. Some employees, in particular the accounts staff, would continue their normal duties, while the majority of production personnel would undergo a period of retraining and also be involved in maintenance of the plants.

The rapid fall in the price of aluminum has affected production in Jamaica, with all of the companies that produce bauxite and alumina cutting staff and production. Earlier this month, Jamaica's largest bauxite and alumina producing company, Alumina Partners of Jamaica, announced it would suspend operations in May due to the global economic crisis and flagging demand, and that this would mean layoffs.

Mr Bruce Golding PM of Jamaica said that he was holding talks with international entrepreneurs, whom analysts said that included Chinese officials to try to find new investors and markets for Jamaica's bauxite and alumina.

(Sourced from Mining Journal)