Alumina Partners of Jamaica

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.