REPORTS ARE now surfacing that the suspension of production by some of the bauxite companies operating locally could escalate into the full pullout of the international investors.

But neither the companies nor the Government has confirmed if the international entities which own a stake in both the West Indies Alumina Company (Windalco) and Alumina Partners of Jamaica (Alpart) are on their way out.

An official of Windalco on Friday directed The Sunday Gleaner to its major shareholder, the Russian firm UC Rusal, while Alpart has announced only a one-year suspension of operations.

Unable to contact Rusal

But efforts to contact Rusal on Friday evening were unsuccessful as the person who answered the telephone said the office was closed.

Derrick Smith, the minister of mining, said in the Government's last meeting with a top executive from UC Rusal six weeks ago, it was given assurance that the company would not pull its investment, but Smith does not know if the company has reconsidered its plans, given the situation.

He said the Government was not sitting aside idly, however, watching the demise of the sector. In addition to a bauxite taskforce set up about a month ago to explore other opportunities, Smith disclosed that the Government was looking into other markets overseas.

No specifics

The Sunday Gleaner understands that the Chinese and Canadian markets are among overseas openings being explored by the Government, but Smith would not divulge specifics.

"We have a technical team that was established. They were overseas recently; I won't go into the details of where they went, but we have not been able to sign conclusively, so an announcement can't be made, but the Government is on the move in terms of looking at alternatives should the worse-case scenario present itself," Smith told The Sunday Gleaner yesterday.

He noted that the island's second most important sector, bauxite/alumina production, is expected to experience a sharp 45 per cent combined decline in production this year as the country grapples with the closure of Windalco and Alpart.

What the companies claim to be a temporary closure will put hundreds of employees out of work.

According to Smith, the production figures for bauxite this year are projected to fall to about 10.6 million tonnes or 21 per cent less than what was produced in 2008.

Alumina production will experience an even sharper decline of about 30 per cent, moving down to 2.5 million tonnes.

"Total export value of the above is approximately $633 million, about 45 per cent less than the prior year," Smith said.