KINGSTON, Jamaica — When mining companies extract Jamaica’s natural resources, damage the land and fail to rehabilitate it as required by law, the public is entitled to know who will enforce those obligations and bear the cost if they are ignored.
The Auditor General’s latest findings highlight the problem. At the end of 2025, three mining companies owed the Jamaican Government US$13.7 million in penalties for failing to rehabilitate 264 hectares of mined-out land. One company accounted for 169.68 hectares, or 64 per cent of the affected land, and US$9.89 million, or 72 per cent of the outstanding penalties.
The issue is both environmental and fiscal. When companies fail to meet their legal obligations, the public faces greater exposure to the consequences of private extraction.
Political responsibility for the mining portfolio rests with Minister of Agriculture, Fisheries and Mining Floyd Green. The opposition spokesperson for mining is also silent. The Mines and Geology Division administers and enforces key parts of the regulatory framework, while revenue authorities are responsible for collecting amounts owed to the State.
The audit found weaknesses across that system. Two operators owed US$828,000 in royalty principal, along with US$2.58 million in interest and penalties. One mining operator continued operating for about six years after its licence expired, while six quarry operators also continued beyond their licence periods. In 2022-23, the Mines and Geology Department conducted only 243 quarry inspections, against a target of 400.
These gaps risk making non-compliance cheaper than compliance. Companies that meet licensing, royalty and rehabilitation requirements bear costs that others may avoid by delaying payment, operating without valid licences or leaving environmental liabilities unresolved.
Security deposits are intended to prevent that outcome by ensuring that funds are available for rehabilitation. However, the audit reported that the MGD said the requirement had been relaxed to encourage investment but could not provide documented approval for the concession.
If an operator cannot or will not rehabilitate mined land, the obligation does not disappear. The State may ultimately have to pay, transferring the costs of private extraction to taxpayers and undermining the polluter-pays principle.
The issue also raises broader questions about state capacity. Jamaica recently received a US$5 million European Union grant, implemented through the World Bank, to strengthen government capacity for post-Hurricane Melissa reconstruction, including planning, procurement, contract management and oversight.
That assistance is welcome, but external support cannot replace effective domestic enforcement. Before imposing new taxes or borrowing more, the Government should ensure that existing royalties, fees, penalties and other revenues are collected.
Jamaica has laws governing mining, licensing, royalties, rehabilitation and environmental protection. The challenge is making those laws work in practice.
The US$13.7 million is therefore more than an unpaid bill. It measures the gap between what Jamaican law requires and what the State is able to enforce.
Where is the people’s money, and who will ensure that the public does not inherit the costs of private extraction?
