The outcome of a feasibility study being undertaken by the Chinese mining company BOSAI on the setting up of an alumina plant at Linden could be known by early next year according to the company’s Industrial Relations Manager Peter Benny.
“The feasibility study is underway and it is anticipated that it will be concluded before the end of the year and a decision will be taken thereafter, Benny told Stabroek Business.
“The objective, depending of course on the outcome of the study is to build a completely new plant at the existing site that produces between 1 million to 1.5 million tonnes of alumina.” If the feasibility study gives the establishment of an alumina plant the ‘thumbs up’ the investment by the Chinese company could exceed US$1billion.
Benny disclosed that BOSAI is also engaged in a feasibility study – which includes a market study to determine whether the demand for calcined bauxite justifies the installation of a third calcine kiln. “We have two kilns at the moment and the study to determine the feasibility of installing a third kiln is underway and should be completed by the middle of 2008. If it proves feasible construction of that third kiln should commence towards the end of the year.”
Meanwhile, according to Benny BOSAI has set itself a production target of more than 500,000 tons of bauxite in 2008 which, if realized, will mark the highest volume of bauxite production in Linden for several years. Benny disclosed that this year BOSAI set itself production targets of more than 280,000 tons of Refinery A Grade Super Bauxite (RASC); over 200,000 tons of Super Chemical Grade Bauxite (SCGB); and 100,000 tons of Cement Grade Bauxite. (CeGB).
And in pursuit of its 2008 production target BOSAI has invested US$8m in the acquisition several pieces of new equipment including three backhoes and thirteen on and off-highway trucks. According to Benny BOSAI’s most recent expenditure pushes its total investment in the Linden mining operations, including the US$46m purchase price for the company to approximately US$60m.
BOSAI took over the Linden mining operations from Omai Bauxite Company in May last year.
Last year the company produced more than 300,000 tons of bauxite including approximately 220,000 tons of RASC, 115,000 tons SCGB and more than 50,000 tons of CeGB.
And Benny told Stabroek Business that BOSAI had made an important breakthrough on the international market for SCGB. “What is significant about this development is that when BOSAI took over the Linden operations its main thrust was not SCGB.
Our focus was on refractory grade bauxite. However, beginning with Cambior/IAM Gold, a market has been developed for this unique product and we have decided that it is lucrative to get involved in SCGB production,” Benny said.
He disclosed that between 2006 and 2007 the international market for SCGB had increased from 15,000 tons to more than 100,000 tons. “In the initial stages we had set up a pilot plant to enable the production of cement grade bauxite.
Now that the market has grown appreciably, BOSAI has decided to elevate the drying facilities from its pilot plant status to a substantive facility. That is part of our current investment.” And according to Benny the company is seeking to respond to the challenge of a continually ageing work force by re-starting the former LINMINE apprenticeship programme in May this year. The programme which will last for two years will offer several courses relevant to the skills needs of the company including Information Technology, Electronics, Electrical Engineering, Mechanical Engineering and Welding.
The first batch of forty students will be selected from applicants who have undergone training at the Linden Technical Institute and at senior secondary school in the mining town.
Benny told Stabrtoek Business that the outlook of BOSAI was benefiting from an “excellent” industrial relations climate. He said that the company continued to enjoy good relations with the National Association of Clerical, Commercial and Industrial Employees (NACCIE).
Last year the union and the company signed a four year Collective Labour Agreement, a component of which was a one-year wages agreement. The wages agreement expires at the end of March and negotiations on a new wages agreement are scheduled to commence today.
The current BOSAI work force is around 600 employees.
