Guyana’s bauxite potential warrants a smelter
…but present power supply a limiting factor
Kaieteur News
June 9, 2004
RECENTLY Trinidad’s Prime Minister Patrick Manning touted the possibility of Guyana setting up an aluminium smelter in its local bauxite industry.
However, this may be easier said than done, given the vast power supply that would be needed to run such a smelter.
Commissioner of Guyana Geology and Mines, Mr. Robeson Benn said that Trinidad recently discovered a large gas reserve, which would make the operations of any smelter very feasible.
He said that for Trinidad an aluminium smelter was long on the cards. However, he contended that it is possible for Guyana to set up a smelter but some of the factors that need to be considered are the market conditions and the ability of this country to generate the amount of power to run the smelter.
But one factor that stands Guyana in good stead is the large bauxite reserves. Mr. Benn said that Guyana’s bauxite reserves stand at some 700 million tones. These reserves exist at Linden and Berbice, especially in the Aroaima areas and along parts of the Cuyuni/Mazaruni.
In addition, there is a further 1.5 billion tonnes of speculative resources in the Pakaraimas. Such reserves would be enough to merit a smelter in Guyana. And unlike a recommendation by a former Linden Bauxite Board member, any smelter with a capacity of 100,000 tonnes would be ridiculously small.
Mr. Kim Kissoon had suggested that Guyana needed a smelter that would produce some 100,000 tonnes of aluminium per annum.
Mr. Benn said that the Retrieve alumina plant, when it was operational, produced some 250,000 tonnes per annum. He said that at this time the move by most countries setting up smelters is to be in apposition to process at least one million tones.
Mr. Benn said that Brazil’s bauxite and Iron Ore Producers recently signed a joint venture project with China to establish a 1.8 million tonnes aluminium smelter project. In the years ahead, this could grow to smelt 7.2 million tonnes.
Meanwhile, the local bauxite industry is reeling. The cause of the plight of the bauxite industry is that Guyana has not been able to modernize and to rehabilitate its industry in keeping with modern trends.
However, Mr. Benn said that this is now being undertaken, particularly in the Berbice area. But Guyana has to cope with the competition which has been able to mine bauxite, even at deeper levels than Guyana and still produce the mineral at competitive prices.
Some of the competition has come from Brazil, India, China, Australia and Guinea. In cases, they have to undertake more stripping that in Guyana so the door is not closed to Guyana.
Mr. Benn said that based on the type of resources available in Guyana and the possible of cheap power sources from Trinidad, Guyana may still be in apposition to access the world market with competitive prices.
Back in 1973, Guyana recognized the need for cheap power to operate a smelter and undertook to construct a massive hydroelectric facility. That project involved damming a falls in the Upper Mazaruni.
That project ground to a halt when international funding was withheld.
Since then Guyana has been pursuing hydroelectric development. At present, a group of overseas-based Guyanese are undertaking to construct a hydroelectric facility at Amalia Falls in the Mazaruni.
If this project gets underway, then the surplus power would be added to the national grid.
This project would also be substantial enough to power any smelter that the government may wish to construct.