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Century Aluminum plans to invest up to US$30 million in its Jamaican alumina refinery, Jamalco, in 2026, to reduce energy costs and ramp up production towards full capacity.
The investment was disclosed during the United States-based company’s recent investor call.
“For our 55 per cent interest, I’d expect US$10 million to US$15 million in sustaining operations, and another US$10 million to US$15 million in investments at Jamalco next year,” said Peter Trpkovski, Century’s executive vice-president, chief financial officer, and treasurer. The Government of Jamaica owns the remaining 45 per cent of Jamalco, which is based in Halse Hall, Clarendon.
“We’re continuing our turbine generator project and have identified other initiatives to get the business back to the second quartile of the cost curve,” Trpkovski said.
Reaching the second quartile means Jamalco’s production costs would fall below half of its competitors, though still outside the lowest-cost tier.
The turbine generator, now on site and undergoing installation, is expected to become operational by the first quarter of 2026. Once completed, it will allow Jamalco to generate its own power, eliminating the need for costly third-party electricity purchases – a key step in lowering operating costs and improving margins, the management said.
Century, which acquired a majority stake in Jamalco two years ago, has faced a series of unplanned expenses that have overshadowed its initial investment plans. In 2023 alone, Jamalco incurred US$30.4 million in unexpected costs over the final six months, stemming from equipment failures and damage to its powerhouse. The company had originally budgeted just US$7 million in capital expenditure for the year. Then, in July 2024, it suffered an additional US$10 million in damage to its Rocky Point port because of Hurricane Beryl.
Century acquired Jamalco from Noble Energy for US$1 in April 2023, allowing Noble to shed ongoing and unpredictable expenses. Century booked a US$103.3 million gain on the deal, equivalent to $16 billion at the time.
Despite the setbacks, Century has reaffirmed its pledge to invest in Jamalco’s asset base through 2026. The refinery is on track to reach its full production capacity of 1.4 million tonnes of alumina annually, executives said.
Jesse Gary, Century’s president and CEO, noted slight disruptions in global bauxite supplies because of the suspension of some producers’ licences in Guinea. Jamalco’s long-term bauxite mining licences, however, will shield it from these disruptions, Gary said.
The Jamalco investment forms part of Century’s broader capital strategy to feed its smelters with alumina from Jamaica for aluminium production across its group operations.
Century’s quarterly financials did not disaggregate Jamalco’s sales to show the subsidiary’s impact on the group. Headquartered in Chicago, Century operates smelting facilities in the United States and Iceland. For the second quarter of 2025, the company reported a net loss of US$4.6 million, though adjusted EBITDA or core earnings reached US$74.3 million.
Century expects stronger third-quarter results, supported by higher regional premiums and improved operational performance.
English (US) ·