Question 1

What is the Bauxite Production Levy in Jamaica?

Accepted Answer

The Bauxite (Production Levy) Act of 1974 imposes a statutory production levy on all bauxite extracted in Jamaica, indexed to the realized market price of primary aluminum on major international exchanges (such as the London Metal Exchange).

Question 2

What is the statutory mining royalty rate on Jamaican bauxite?

Accepted Answer

In addition to the production levy, mining operators must pay a statutory royalty under the Mining Act, traditionally set at a fixed rate per Dry Metric Tonne (DMT), commonly US$0.50 per tonne, paid directly to the Mines and Geology Division.

Question 3

How much bauxite is required to produce one tonne of alumina?

Accepted Answer

In Jamaica's metallurgical processing plants (such as Jamalco, Windalco), it generally takes between 2.2 and 2.6 dry metric tonnes of local bauxite ore to produce one metric tonne of commercial smelter-grade alumina via the Bayer chemical refining process.

Question 4

What is the Capital Development Fund (CDF)?

Accepted Answer

The Capital Development Fund is the sovereign national fund established by the Jamaican government to receive revenues from the bauxite production levy, dedicated to financing long-term infrastructure, agricultural rehabilitation, and economic diversification.

Question 5

Are bauxite and alumina mining companies subject to standard Jamaican Corporate Income Tax?

Accepted Answer

Yes, bauxite and alumina producers are subject to Jamaican Corporate Income Tax, though several historic operations operate under negotiated bilateral concession agreements or special regimes that credit levy payments against income tax obligations.

Jamaica Bauxite & Alumina Mining Royalty Calculator

Production Tonnage & Market Benchmarks

Statutory Mineral Revenue Ledger