Jamalco puts Beryl damage repairs at nearly $2 billion

Jamalco, the alumina producer, priced the repairs to its Rocky Point port in Clarendon at US$12.5 million ($2 billion).

The port was damaged in July from the storm surge associated with Hurricane Beryl. The company used another port until it reopened Rocky Point in September.

The financial accounts of Century Aluminium, the operational parent company of Jamalco noted “US$12.6 million” as the “Jamalco hurricane impact”.

Century added that this amount reflects "Century's 100 per cent share of incremental costs from Hurricane Beryl's impact at Jamalco”. Century owns 55 per cent of Jamalco with the Government of Jamaica holding the balance through an entity called Clarendon Alumina Partners.

The financials stated that costs included repairs to the damaged port, costs of alternative shipping arrangements, and fixed costs incurred while alumina production was impeded.

The port damage along with hurricane delays at other operators resulted in the mining sector recording a 15 per cent contraction in the September quarter 2024 compared with a year ago.

Century executives said that rising demand from China and US tax credits are driving the company’s strong financial growth. They also noted that Jamalco will enable the company to meet this growing demand.

Chicago, USA-based Century Aluminum owns and operates primary aluminum smelting facilities in the United States and Iceland.

During the September quarter 2024, sales at Century totalled US$539 million for the quarter or 3.7 per cent down from US$560 million a year earlier. Increased margins however due to higher demand in China and tax credits in US resulted in a US$45 million profit compared to US$2 million loss a year ago.

Beryl passed offshore the island in July with the strongest impact felt on the island's southern coast. It led Jamalco to declare a ‘force majeure’ due to the port damage. Jamaica can output 1.2 million

tonnes of alumina a year. The shift to the alternative port allowed it to keep on track to hit that target.

Total equity at Century increased dramatically to US$628.5 million up 83 per cent year on year from US$344 million due to profit growth.