Eurasian Resources speaks to GBR about its bauxite operations in Guinea.
Eurasian Resources first arrived in Guinea in 2010 and currently has preliminary offtake agreements for 5 million tonnes of bauxite. Can you provide a brief overview of the project’s history?
The project is divided into four stages. The first stage is the exploration. It was completed in 2012. 130,000 meters were drilled in accordance with the license that covered 2,000 square kilometers — the size of some small countries. The exploration was done under the supervision of SRK Consulting – the company with strong expertise in bauxite. It took two years to finalize the exploration, and once Eurasian Resources received the resource report, it became clear that the resources base consisted of 5 billion tonnes of bauxite with a grade of 40% and 2 billion tonnes with an average grade of 44% Al2O3 and 2% SiO2. The second stage is the initiation of a pre-feasibility study to begin the construction of an alumina plant. However, after two years of work, the Company decided to put the project on hold due to the alumina price drop that was considered to be a challenge to find funding for the refinery. The third stage is DSO and final stage is the infrastructure.
Given that your project is remotely located, how have you overcome challenges in infrastructure and logistics? Continue reading
MACIG Connect Series
Alufer is developing its new Bel Air bauxite project in Guinea and describes the company’s progress there.
Can you provide a brief company history of Alufer’s presence in Guinea and highlight its strategy going forward into 2018?
Alufer has been involved in exploring for bauxite in Guinea for over eight years. The company initially identified the Labé project, which is in the plateau hills in the north of the country and is a very large, high-quality bauxite deposit. This deposit is circa 350 km inland however, which is more economically challenging and so the company focused on finding a bauxite resource closer to the coast. Our exploration efforts led us to discover the Bel Air project which is 15 km from the sea and easily accessible from Conakry. Finding a new deposit which we could develop all the way from being a greenfield site through to production was a very exciting and unique situation for us. We closed our construction financing for US$205 million at the end of last year with a consortium of large mining houses, and that money is being used to build the Bel Air mine. We are now halfway through the construction phase and first ore ship is scheduled for Q3 2018.
Amco Drilling removed their operations from Guinea because of the difficulties in the business environment. What risks do your investors see in the Guinean market? Continue reading
MACIG Connect Series
West Africa, especially jurisdictions such as Ghana and Guinea, continue to be important for IBK.
Can you please provide a brief background into IBK Capital Corp.?
Michael F. White (MFW): IBK Capital Corp. is an independent and privately owned Canadian investment banking firm. IBK Capital was established in 1989 by a group of professional investment bankers from Merrill Lynch Canada Inc. Over the past 26 years, IBK Capital has Continue reading