President meets BOSAI officials on bauxite

Guyana Chronicle
May 10, 2007

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PRESIDENT Bharrat Jagdeo yesterday met top officials of the BOSAI firm of China that has taken over the bauxite operations in Linden, the Government Information Agency (GINA) said.

The agency said he met John Liu, Managing Director of BOSAI Minerals Group Company Limited (BOSAI), the Managing Director of BOSAI Guyana Yuan Zhilun, and other officials at State House to discuss the future of the bauxite industry and other economic activities that could be pursued by the mineral company to develop Region 10 (Upper Demerara/Berbice).

According to GINA, Lui said that during the meeting, Mr. Jagdeo was brought up-to-date on the handing over of equity shares in the bauxite industry.

Prime Minister Samuel Hinds on Sunday, at the Watooka Guest House in Linden, participated in the official handover to BOSAI.

BOSAI now owns Canadian-based IAMGOLD's interest in Omai Bauxite Mining Incorporated (OBMI), pursuant to a Share Purchase agreement.

The government was given the go ahead for this deal in February and BOSAI paid IAMGOLD US$46M to acquire its equity share, GINA said.

BOSAI, based in the western Chinese city of Chongqing, now controls 70 per cent of the company’s equity, while the government holds 30 per cent, it said.

Also at the meeting yesterday was Norman McLean, one of BOSAI’s six nominated Board members. The government under the present agreement holds three Board seats.

GINA said Lui reported that BOSAI will in the latter part of this year undertake a pre-feasibility study for the construction of an aluminum plant in Linden.

Prime Minister Hinds, an expert in the mining sector, expressed confidence in the government’s partnering with BOSAI to re-develop bauxite resources during the next ten years, the agency said.

BOSAI officials were taken on a familiarisation tour of the mining town of Linden on Monday.

Among the many locations visited were the old alumina plant at Lower Kara Kara and the old administrative office of the Linden Mining Company (LINMINE) secretariat.

The Berbice bauxite plant, Aroaima Mining Company, was also privatised.

Russian aluminum giant, RUSAL acquired a 90 per cent stake in the Berbice operations at a cost of US$20M.

The remaining 10 per cent is owned by the Guyana Government.