Natural Resources Ministry clears the air on bauxite-related issues

The Natural Resources and Environment Ministry has refuted comments from the A Partnership for National Unity (APNU) which appeared in various sections of the media regarding bauxite issues in Region 10.
The ministry through the Guyana Geology and Mines Commission (GGMC) in a release said there has been an increase in the number of companies, firms and stakeholders in regards to the Guyana bauxite industry, but clarity should first be addressed with Block 37.
“The Block 37 deposit is located in Linden while Block 38 is located in proximity to Ituni. Block 37 was leased to Bosai (BOSAI Minerals Guyana Inc), while Block 38 was leased to BCGI (Bauxite Company of Guyana Inc), both within the mineral agreements signed when the various companies took over the operations from Omai Bauxite Company and Aroaima Mining Company.
“Block 37 has an ore grade suitable for RASC (Refractory A-grade Super Calcined) while Block 38 has an ore grade suitable for MAZ. Unfortunately, the recent press statement by APNU did not capture this and somehow managed to confuse Bock 37 and 38,” the release said.
According to the ministry, the category of the ore from both deposits has not thoroughly determined as a proven reserve, and as such, its true value is not known.
Historical records consider both deposits as probable. Block 37 currently remains as a reserve deposit. Commitments must first satisfy the government of Guyana, prior to issuing of any licences for the said deposit, the ministry said.
“Bosai Mineral Guyana Inc. has already expressed their willingness to expand their operations, creating over 400 new jobs for the residents of Linden and its environs, as well as investing in an apprenticeship programme set to commence in 2013. Bosai Mineral Guyana Inc. currently will be expanding operations from Linden, facilitating new products on the bauxite market.
“The bauxite industry is not controlled by Bosai and BCGI only, there is also First Bauxite Corporation and Bauxite Corporation of Guyana Inc. Bauxite Corporation of Guyana Inc is currently exploring deposits in the Berbice area, while First Bauxite Corporation is much more advanced with the company’s exploration and mine development. First Bauxite controls a large area in Guyana’s historical coastal bauxite belt, including the Bonasika Mining License and the Essequibo PGGS Prospecting Permit.
“The company’s bankable feasibility study update defines and confirms the economic viability of an operation based on sequential mining of two bauxite deposits (Bonasika six and Bonasika seven) over a mine life of 36 years,” the release said.
There are also applications by a number of companies for prospecting licence for bauxite ore deposits in Regions Six and 10, and decisions made will be done on sound and technical evaluation, taking into account the need to maximise benefits for all Guyana, the ministry said, pointing out that it must be noted that RUSAL and BOSAI are instrumental as the licence and bauxite industry, both of which were on the verge of collapse.
The release noted that the government of Guyana and the GGMC continue to ensure that the legal and mining agreements are upheld through increased monitoring as well as enhanced dialogue and interaction. It must be noted that the earlier this year, a Bauxite Unit was created in the GGMC to provide greater technical oversight of the bauxite industry.