The Mining and Quarrying Association of Jamaica (MQAJ) is urging construction companies, developers, and property owners to prepare for possible increases in the cost of key building materials, including construction-grade limestone and sand, as operators face mounting production pressures.
Mining and Quarrying Association of Jamaica President Sam Millington said in a statement Thursday that rising energy costs are being felt across the entire production chain.
“Let’s be real, energy is at the centre of everything we do,” Millington said. “When fuel and electricity costs rise at the same time, it affects every stage of production. Operators have been absorbing as much as possible, but there are limits.”
He warned that without policy intervention, the sector could lose competitiveness to more efficient markets.
“Many companies have invested in more efficient equipment and backup energy systems, but without meaningful action to address energy costs, we will lose competitiveness,” he added.
MQAJ Treasurer James Ince also pointed to ongoing recovery challenges following Hurricane Melissa, particularly for operators in Black River.
“We’re still recovering from Hurricane Melissa, while managing rapidly rising fuel and power costs, which affects all businesses, including all our suppliers,” Ince said. “It’s been tough; many of the local support systems we usually relied on are either gone or struggling to operate, which has impacted our business and staff.”
The association said any anticipated price adjustments are being driven by economic conditions rather than coordinated action, noting that rising fuel and electricity costs continue to place sustained strain on production and distribution.
Heavy processing equipment, it added, requires significant power, with some operators already facing monthly electricity bills in the millions, alongside higher fuel expenses for hauling and exports.
MQAJ also cited the lingering impact of last year’s hurricane, which caused millions in losses and disrupted operations and infrastructure. According to data from the Statistical Institute of Jamaica (STATIN), the mining and quarrying sector declined by 37.5 per cent, underscoring the scale of the setback.
The association further noted that rising port fees have also affected export competitiveness, with some buyers reportedly shifting to lower-cost regions.
Stakeholders in construction and real estate are being encouraged to plan ahead as potential price increases reflect broader structural pressures across the sector.
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