First Bauxite commissions US$100M Bonasika mine

Executives of First Bauxite/Guyana Industrial Minerals and the government delegation comprising Minister of Natural Resources Raphael Trotman, Minister of Finance Winston Jordan and Prime Minister Moses Nagamootoo cutting the ribbon to declare the mine open. (DPI photo)
Executives of First Bauxite/Guyana Industrial Minerals and the government delegation comprising Minister of Natural Resources Raphael Trotman, Minister of Finance Winston Jordan and Prime Minister Moses Nagamootoo cutting the ribbon to declare the mine open. (DPI photo)

Guyana Industrial Minerals (GINMIN), a subsidiary of United States-based First Bauxite (FBX), yesterday commissioned its mine and processing plant at Bonasika, Demerara River, in Region Three, and pledged that the US$100 million investment would be a world-class operation.

The commissioning of the Bonasika project marks a significant achievement for the company, which began operating here in 2008.

“We will gladly admit that we have taken our time to put this mine in operation but as we say today is the day,” FBX Board Chairman Thibault Van Stratum said in brief remarks as he addressed the gathering of workers and special invitees at the commissioning.

A ministerial delegation comprising (from right) Minister of Finance Winston Jordan, Prime Minister Moses Nagamootoo and Minister of Natural Resources Raphael Trotman being briefed on the operations at Bonasika. (DPI Photo)

When producing at full capacity, the Bonasika Bauxite Project will deliver an annual production of 320,000 metric tonnes of washed bauxite. Tests have shown that the bauxite ore found in the mine is the purest in the world and can be used to develop high level tertiary products for very specialized needs.

Van Stratum noted that within the last year the company has been marketing the ore to potential clients and the signals received so far have been encouraging.

“We are very encouraged about the signals we have been getting from the markets,” Van Stratum said, while pointing out that interest is not only coming from the North American market but also Europe and increasingly from Asia. He said not a week goes by without interest, which he believed sets the foundation for an endless amount of opportunity going forward.

The newly constructed Sand Hills Primary School. (DPI photo)

The lifespan of the mine is projected to be between 15 and 17 years, although the company has said other operations will further extend the company’s presence in the country to about 25 years. A total of US$387 million is expected to be injected into the local economy within the estimated 15 years of operation.

Van Stratum said that the company is committed to making the necessary investments and wherever it sees potential in the future to continue to enhance the operation, it would seek to realise it. “We see this as a long term investment and that is our commitment to you. Rest assured that First Bauxite will make you and [your] country proud. We will produce and operate according to world class practices. That is our commitment to you,” he remarked.

A view of the bauxite processing plant at Bonasika

Chief Executive Officer Bill Rice also committed to the company operating at the highest international standards.

Rice further said that the company will show respect to all and in doing so it is committed to “giving all the people that work for us opportunities to grow and develop to their full potential. We think that’s one of the areas [where] we can help them. We can help the country and we can help ourselves by allowing people to learn, to be able to take on new skills, new responsibilities and continue to grow.”

Delivering the feature address, Minister of Natural Resources Raphael Trotman hailed the project and said that foreign investors like FBX can help by bringing much needed technological innovation and investment to develop a qualified local workforce.

Major leap

He stated that FBX took a major leap when others were afraid to invest in the economy and at a time when the country’s bauxite resources were seen to be more of a curse than a valuable asset.

He nonetheless told the company that government will continue to expect high standards of it in their dealings with the people of Guyana in order to ensure a long and mutually beneficial relationship. “We also expect that as you benefit from the resources in the community, you comply with our laws and respect our people. Leave behind better infrastructure than you met, a more professional workforce than you found, and environmental behaviour that can be used as a global model,” he urged.

Trotman also mentioned that his ministry has over the years been making deliberate efforts to develop the mining sector and has adopted a multi-pronged approach to strengthening it at every level. He stated that while they have been working to create an environment with opportunities for those who benefit from and depend on the sector for their livelihood, they have been “simultaneously updating related legislation to improve the functioning of our agencies, restructuring for internal efficiency and have engaged our partners in more meaningful ways.”

“At present, both mining and forestry legislation and policy have been updated to facilitate the needs of a rapidly growing sector,” he said, while also noting that the Guyana Extractive Industries Transparency Initiative (GY-EITI) that was established in 2016 has established frameworks for better governance.

Guyana is expected to earn a total of US$49.8 million during the estimated 15 years of operations, including a 3% royalty pegged to work out to be US$6.4 million, a mining licence fee of US$1.42 Million, Employee PAYE (Pay As You Earn) taxes of US$18.95 million, as well as Withholding Tax and Company Tax of US$5.53 million and US$17.47 million, respectively.

At present, there are 95 permanent workers, 130 contracted employees, Human Resources Manager Iana Seales said, while explaining that there are eight expatriates among the workforce.

The company has also invested in the construction of the all-weather road made from local material to access the mining site, which is located approximately 30 minutes away from Sand Hills.

Additionally the company announced that as a part of its Corporate Social Responsibility, it will spend US$929,000 over the life of the project to enhance the livelihood of the community. Projects under this fund include a contribution to a church fund, electricity reticulation, potable water supply, secondary and university student and scholarship assistance, and sports.

Under the project, the company yesterday commissioned a modern soundproof Sand Hills school building at a cost of US$92,000.

The commissioning ceremony was attended by Prime Minister Moses Nagamootoo, Minister of Finance Winston Jordan, the US Embassy’s Political and Economic Counsellor Alexandra King Pile, Commissioner of the Guyana Geology Mines Commission Newell Dennison, acting Commissioner of the Guyana Forestry Commission Gavin Agard, and representatives from the Environmental Protection Agency.

The FBX website states that the company produces high grade, low impurity bauxite with raw ore alumina contents at 63 percent and, when sintered, over 93% alumina. This fills the niche in the alumina range between 87-88% typical bauxites and more expensive high grade aluminas, such as brown-fused alumina. Applications for First Bauxite’s alumina include water treatment, refractories, Ultra High Strength Proppants, welding applications, certain abrasive markets, and steelmaking slags.

The high grade bauxite is not a replacement for ordinary non-metallurgical bauxites and not even for other Guyanese bauxites which are lower in alumina or higher in iron. The extremely low impurities make this bauxite stand out in a class of its own, the company adds.