ANOTHER 250 bauxite workers are to lose their jobs at Aluminium Partners of Jamaica (Alpart). Those being sent home are non-permanent, unskilled persons.

The exercise will bring to 400 the total number of people sent home from the bauxite plant, which is struggling to survive the world economic crunch.

There are also indications that there could be more job cuts at Alpart, should the alumina market remain flat.

Alpart said yesterday that "A further assessment of the total workforce needs will be announced at a later date."

High-profile meeting

Yesterday's announcement came hours after officials of Rusal, Alpart's parent company, met with a government team, which included Minister of Mining and Telecom-munications Derrick Smith, to discuss ways to keep the sector afloat.

In a release yesterday, Alpart said the economic situation required that it take immediate action, as the global crisis has seriously affected the world aluminium industry with consequent decline in aluminium production and alumina demand.

Construction, transport and packaging industries account for about 65 per cent of industry-wide consumption of aluminium, while Europe, North America and China contribute 71 per cent of the annual consumption.

However, these three sectors and three regions are the worst hit by the global economic meltdown.

Alpart said it intends to reduce its production volume by 50 per cent from 1.65 million tonnes, starting today.

Sharp price decline

The fall in demand for alumina has led to a stockpiling of the product and a sharp decline in price. Aluminium now trades for an average US$1,900 per tonne on the London Metal Exchange, coming from a high of US$3,200 early in 2008.

Smith told The Gleaner yesterday that the outlook for the short term for bauxite appears bleak. He said that, based on the discussions with representatives of Alpart, he suspected that the country's other three bauxite-producing companies could cut back on production as well.

"This is surely not good news and it is an indication of what one can expect," said Smith, who added that the situation might not improve until the middle of this year.

Windalco, another of the country's bauxite-producing companies, sent home 150 non-permanent workers in December.

daraine.luton@gleanerjm.com