Reports are now surfacing that the ailing bauxite sector could be rescued by China but there has been, so far, no confirmation from the Government.

Yesterday, Minister of Mining and Telecommunications Derrick Smith shied away from the issue, neither confirming or denying the claim, though fuelling speculation during an address.

However, industry insiders say there could soon be a major announcement from the Govern-ment about Chinese involvement in the industry.

"You are all aware of the tenuous situation in the bauxite and alumina sector, which has resulted in social dislocation. Despite these challenges, we as a Government and as an industry will take the necessary steps to cushion the impact," Smith said at the launch of National Minerals Week.

Signed last weekend

Officials of the Chinese Government, including Vice President Xi Jinping and the vice-minister of Commerce, Ma Xiuhong, were in the island on the weekend for talks with the Bruce Golding administration on several issues, but there was no indication that bauxite was on that list. Seven new agreements and letters of exchange, covering areas of economic and technical cooperation, were signed.

Discussions are also being held with a number of Chinese entrepreneurs in relation to various major investment projects and a number of memoranda of understanding to be signed shortly, Golding said.

China is one of the world's leading producers and consumers of aluminium.

A downturn in international demand has diminished bauxite earnings in Jamaica and has led to the layoff of hundreds of workers.

arthur.hall@gleanerjm.com