Rising energy costs to push up construction material prices, Mining and Quarrying Association of Jamaica warns

Construction companies, developers, and property owners are being urged by the Mining and Quarrying Association of Jamaica (MQAJ) to brace for likely increases in the cost of key materials, including construction-grade limestone and sand, as operators respond to mounting cost pressures.

In a statement, the association said any anticipated price adjustments are being driven by economic realities, not coordinated action, noting that rising energy costs—both fuel and electricity—are placing sustained strain on production and distribution.

It explained that heavy processing equipment requires significant power, with some operators already facing monthly electricity bills in the millions, alongside higher fuel costs for hauling and export.

The association said these pressures come as the industry continues to recover from millions in losses caused by Hurricane Melissa last year, which disrupted operations and damaged infrastructure.

“Recent data from the Statistical Institute of Jamaica (STATIN) shows the mining and quarrying sector declined by 37.5 per cent, highlighting the scale of the challenge,” the statement said.

President of the association, Sam Millington, said the impact is being felt across the value chain.

“Let’s be real, energy is at the centre of everything we do. 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 said.

According to Millington, without intervention, the sector risks falling behind more cost-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.

Treasurer James Ince pointed to ongoing recovery challenges following hurricane damage, particularly for operators in Black River.

“We’re still recovering from Hurricane Melissa while managing rapidly rising fuel and power costs, which affect all businesses, including our suppliers,” Ince explained.

“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,” he added.

The association noted that rising port fees have further affected export competitiveness, with some buyers shifting to lower-cost regions.

Stakeholders across the construction and real estate sectors are being encouraged to plan accordingly, as any increases will reflect broader systemic pressures.

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