Bauxite set for major growth this year - Singh
Guyana’s bauxite industry is set for major growth, this year, with new reserves and investments. This is according to Minister of Finance, Dr Ashni Singh in his 2024 budget presentation on Monday.
During the announcement, the importance of the bauxite sector in the medium and long term was highlighted. Singh noted that despite facing challenging market conditions in 2023, active measures have been taken to alleviate costs, expand the product range, and boost production. These efforts are predicted to bring about a significant turnaround in the bauxite industry in 2024.
One of the standout developments is the allocation of additional reserves in Kara Kara, which amount to 3.5 million tonnes. These reserves are expected to increase production by Bosai Minerals Group in Linden by more than 250,000 tonnes in 2024 and 400,000 tonnes in 2025. The existing kilns as well as the newly installed Kiln # 15 will be supplied by these reserves. The Finance Minister pointed out that Kiln # 15, which was put into operation in June 2023, marks the first new kiln in Linden since the 1970s and has received a US$120 million investment.
Additionally, the deployment of Kiln # 15 and the introduction of the new metallurgic grade bauxite (MAZ) project are poised to transform the Linden area. Currently, the company has invested US$30 million in procuring mobile equipment, including hydraulic excavators, dump trucks, crane trucks, a water truck, and graders, specifically for the 2024 operations.
Moreover, a 9-kilometer conveyor system will link the new mine in Linden to a new port, and from there, the bauxite will be barged through the river. These modern self-propelled barges, with a capacity of 13,000 tonnes, have more than doubled the capacity of previous barges.
Singh also noted that to reduce energy costs, a 19 MW solar farm will be installed and is expected to supply both operations and the local community by the end of 2024. These investments are not only set to revolutionize economic activities in Linden but also support community power generation, benefiting the construction and service sectors, as well as residents.
As a result of these initiatives, a production of 4.5 million tonnes a year is projected, with 1 million tonnes expected to be achieved by the end of 2024. Furthermore, over 500 new jobs are anticipated to be created in 2024, with an additional 500 by the first half of 2025.
With regard to growth, both the gold and bauxite mining subsectors are predicted to rebound strongly in 2024. Gold mining is expected to expand by 15.7 percent, due to higher declarations from large operators and small to medium-scale miners, amounting to a collective 500,000 ounces, Singh said.
Similarly, bauxite mining is set to experience a dramatic upsurge with higher projected production from operators. This increased investment in the sector is estimated to yield over 1,700,000 tonnes in 2024, reversing the previous year’s contractions.
Overall, Guyana’s bauxite industry is on track for a promising future, according to the Budget 2024 presentation, with increased production, job opportunities, and economic growth expected in the coming year.