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The Bauxite and Alumina Trading Company of Jamaica (BATCo) continued its mission during the 2007/08 fiscal period to efficiently market the Government’s alumina entitlements, optimize the returns on sector investment, and promote sector expansion and development.
As outlined in a Ministry Paper, which was tabled recently in the House of Representatives, BATCO carried out a number of activities to this end, during the period.
These included the servicing of loans related to Clarendon Alumina Production (CAP); renegotiating fixed price with buyer for Jamaica Bauxite Mining alumina, which should realize approximately US$30 million over the remainder of the contract; monitoring and approving shipping schedules from CAP and Windalco; and shipping 563,472 tonnes of alumina for CAP and Windalco.
In addition, BATCO monitored specification of alumina to customers; collected $9.66 billion from buyers in revenue for the above mentioned companies; negotiated with buyer for two new alumina contracts; and monitored market conditions, so as to determine opportune time to fix future prices utilizing the London Metal Exchange (LME) prices.
Total revenue for the period amounted to $191.0 million, with total expenditure of $39.6 million and pre-tax profit of $151.4 million. Profit tax of $28.6 million was paid to the Consolidated Fund by BATCO, the document said.
For the current financial year, the Company will continue its core functions of trading alumina on behalf of CAP and JBM, and seek to renegotiate alumina prices. Its budgeted revenue is $137 million and expenditure, $48.5 million.
BATCO was incorporated in 1977 as the trading arm for the government’s alumina, available as a result of its equity in the bauxite and alumina industry. Specifically, the company’s objectives are to prudently trade the Jamaica Bauxite Mining Limited’s (JBM), and Clarendon Alumina Production (CAP) alumina in strategically advantageous markets at the best possible price, taking into account fluctuations in the market.
It seeks to do this by diligently monitoring production, product quality, and advantage; systematically tracking supply, demand, and price trajectory as well as other important market developments as a basis for crafting supply contracts that yield the most favourable and stable revenue stream; ensuring that alumina from joint venture partners is ISO 14000 certified as a means of building source integrity for alumina from Jamaica; and seeking new markets for local alumina, among other critical endeavours.