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Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Alumina Partners of Jamaica
Project ID
141
Fiscal year
1993
Status
Not Active
Guarantee holder
Hydro Aluminum, A.S.
Investor country
Norway
Host country
Jamaica
Sector
Mining
Gross exposure
 $20.2 million
Project type
Non-SIP

MIGA issued its first guarantee in Jamaica to Norsk Hydro A.S. of Norway for an alumina and bauxite mining project. Through its subsidiary, Hydro-Aluminum A.S. of Jamaica, Norsk Hydro expanded its joint venture with Phelps Dodge, Alumina Partners of Jamaica. Total project financing is $179 million, of which Norsk Hydro is providing $62.65 million. The mining project is expected to increase production capacity by 50 percent, to 1.5 million metric tons a year. Alumina and bauxite exports account for much of Jamaica's exports and are critical sources of foreign exchange. The project will generate annual exports valued at $12 million and pay additional taxes of $8.3 million annually. Seventy new jobs will be created, and local procurement is expected to increase substantially. The project will also be contributing funds to improve the social infrastructure in the region. MIGA has provided $20.2 million of coverage against the risks of expropriation and war and civil disturbance.

 
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