Bosia Minerals is to spend more than US$10m in gearing the company for what the company’s Personnel and Industrial Superintendent Peter Benny says is “a determined push” to significantly increase production next year.
According to Benny Bosai is seeking to produce around 280,000 tons of RASC bauxite next year. Additionally, the company’s 2008 targets include 200,000 tons of chemical grade bauxite and 100,000 tons of cement grade bauxite.
BOSAI’s bauxite production targets for 2008 represent what Benny described as “a particularly significant increase” in production. “What this in effect means is that for the first time in several years the Linden community will see two kilns and a drier operate at almost maximum capacity,” Benny said.
In 2008 Bosai expects to more than double its production of chemical grade bauxite.
The $US10m Bosai investment will include expenditure on the purchase of an additional heavy duty shovel to add to one shovel, between 8 and 10 front end loaders and bulldozers and two new backhoes, to add to its inventory next year. The company will also be adding thirteen off -highway Chinese trucks to its fleet and according to Benny these should arrive in Guyana late this year or early next year.
The drier used in the production of chemical grade bauxite is also to be upgraded to meet the 2008 production targets.
According to Benny RASC bauxite mined in Guyana is still considered “the Rolls Royce of refractory grade bauxite. “There was a time when Guyana had a significant hold on that market. Part of Bosai’s focus is on reclaiming Guyana’s influence in the international calcined bauxite market. Up to a few years ago Guyana’s market share was around 10 per cent. Bosai is aiming to increase that to around 20 per cent next year and this would mean the both the mines and the plant would have to perform to high standards of efficiency.
Guyana’s primary bauxite markets include North America, Europe, Asia and the Far East and Benny said that rapid industrial expansion in China meant that there was a growing demand for bauxite there.
According to Benny fuel and shipping costs were among the main challenges facing the company. He said that fuel costs amounted to more than 50 per cent of the operating costs of BOSAI. The cost of Bunker C fuel has increased by more than US$10.00 over the past five months. “Apart from that there have also been significant increases in shipping costs”. Benny said that Bosai’s emphasis on increasing its overall production was aimed at lowering its unit cost.
Bosai took over the operations of the bauxite mining sector in Linden from Omai Gold in May this year after a bidding process.