Russians sign memo for Aroaima bauxite
Stabroek News
February 8, 2004
Russian Aluminum (RUSAL) has signed an MOU with the government for supplies of bauxite and a possible joint mining venture.
The agreement, signed on Friday, builds on a memorandum of intent signed last year. A release from the Guyana Information Agency (GINA) said Prime Minister Sam Hinds signed the MOU on behalf of the Guyana government and Yuri Lysov, the technical head of RUSAL, signed for his company.
The release said the two sides agreed that the potential exists for the local industry to produce and supply RUSAL "with amounts of 500,000-600,000 tonnes annually" from January 2005, and to "consider the prospect of setting up a joint venture between RUSAL and the state-owned bauxite company to mine and export metallurgical bauxite based on increased production for which a feasibility study will be conducted."
Prime Minister Hinds confirmed that the state-owned company referred to is Aroaima Bauxite Company (ABC), with whose officers RUSAL officials had discussions when they were here last March. ABC is in the process of reorganisation to bring its production costs down and to move its operations to the deposits at Kwakwani.
The GINA release said a long-term objective was that the two sides would "consider the prospect of the restart of alumina production at the Mackenzie Alumina Refinery, supplied by the bauxite from the Linden group of deposits.
Hinds explained to Stabroek News that the new bauxite company would have the right of first refusal but observed that the deposits are mainly about 180 feet below ground but could be mined economically if the operations were large enough.
Lysov and his colleagues arrived here on January 26 and leave Guyana today. During their stay, the team visited the bauxite deposits at Linden, Kwakwani and Aroaima, and inspected the mining operations and the river and seaports for shipping bauxite.
The team also met President Bharrat Jagdeo to update him on the outcome of the visit. Following the RUSAL visit last year, President Jagdeo, during a visit to Russia, took the opportunity to further push for co-operation in bauxite production. RUSAL is the one of the largest bauxite and alumina producing companies in the world.