The government is upbeat about the prospects of increased bauxite production here this year as the Chinese-owned Bosai Minerals Group has been granted additional land to mine that would see increases to 250,000 tonnes and 400,000 next year along with 1,000 people being employed by March.
“The government had issued additional reserves in Kara Kara which approximates 3.5 million tonnes… additional investments by Bosai Minerals Group, along with the issuance of additional reserves will see production increase by over 250,000 tonnes this year and 400,000 tonnes next year,” President Irfaan Ali said yesterday, during a live broadcast on his Facebook platform where he gave an overview of plans for the bauxite and forestry sectors.
However, bauxite production figures for the companies that operate here were not given, nor was the overall 2024 production.
As it relates to employment, the President said that 500 people were expected to be employed by the company last year and another 500 by March of this year, following the installation of a new kiln in Linden. It is unclear how much of the 2024 target has been achieved.
“The installation of a new kiln in Linden, the first of its kind since the 1970s and introduction of new metallurgic acid grade bauxite, will also transform the sector and Project Linden,” he said.
Export of the mineral, he said, is expected to increase this year to 163.2 million tonnes.
Ali charged that the “bauxite sector collapsed under the APNU+AFC government,” as he pointed to his analysis that between 2014 and 2020, total production contracted. “Produc-tion went down by 40%. More than 50% of those employed [in the bauxite sector] lost their jobs between 2015 and 2020,” he said, pointing to the closure of the Russian company RUSAL.
He said that since his government took office, a number of steps were taken to resuscitate the sector.
“We had to build back the sector and reenergize what was lost in the region. We went about implementing policies to broaden the product range and increase production, and zoned in on giving the company additional reserves” he said.
He said that Bosai undertook to construct a US$470 million aluminium plant that is expected to provide hundreds of jobs in Region Ten.
To reduce energy costs, a 19 MW solar farm will be installed to supply both operations and community needs and it is expected to be in operation by the end of this year.
For the President, he remains committed to not only ensuring there is private sector development tailored for the benefits of citizens but to also “protect the rights and improve conditions of service for workers in large mining companies”.
The President yesterday repeated much of what Minister in the Office of the President with Responsibility for Finance Dr Ashni Singh had said when he presented the 2024 Budget, as he predicted that this country’s bauxite industry was set for major growth, with new reserves and investments.
The importance of the bauxite sector in the medium and long term was highlighted with Singh noting that despite facing challenging market conditions in 2023, active measures had been taken to alleviate costs, expand the product range, and boost production. These efforts were predicted to bring about a significant turnaround in the bauxite industry last year.
Singh had pointed out that one of the standout developments is the allocation of additional reserves in Kara Kara, which amount to 3.5 million tonnes. Those reserves he too then noted, were expected to increase production by Bosai Minerals Group in Linden by more than 250,000 tonnes in 2024 and 400,000 tonnes in 2025. The existing kilns as well as the newly installed kiln # 15 will be supplied by these reserves. The Finance Minister pointed out that kiln #15, which was put into operation in June 2023, marked the first new kiln in Linden since the 1970s it has received a US$120 million investment.
Additionally, the deployment of kiln # 15 and the introduction of the new metallurgic grade bauxite (MAZ) project are poised to transform the Linden area. Currently, the company has invested US$30 million in procuring mobile equipment, including hydraulic excavators, dump trucks, crane trucks, a water truck, and graders, specifically for the 2024 operations.
Moreover, he had stated that a nine-kilometre conveyor system will link the new mine in Linden to a new port, and from there, the bauxite will be barged through the river. These modern self-propelled barges, with a capacity of 13,000 tonnes, have more than doubled the capacity of previous barges.
Singh also noted that to reduce energy costs, a 19 MW solar farm will be installed and is expected to supply both operations and the local community by the end of 2024. These investments are not only set to revolutionize economic activities in Linden but also support community power generation, benefiting the construction and service sectors, as well as residents.
As a result of these initiatives, a production of 4.5 million tonnes a year was projected, with 1 million tonnes expected to be achieved by the end of 2024. Furthermore, over 500 new jobs were anticipated to be created in 2024, with an additional 500 by the first half of 2025.