Guinea launches new mine
A new mine has been launched in Guinea. The country’s Prime Minister Dr. Bernard Goumou officiated the opening ceremony of the mine sited in Boké region.
The new mine dubbed Koumbia bauxite project is located about 140 miles north of the Guinean capital Conakry and 80 miles north of the port of Kamsar. It is part of the larger Alliance Mining Commodities (AMC) project and is estimate to require a capital investment of over US$1 billion.
World’s largest reserves of bauxite
The play consists of a 281 square mile mining concession which has an estimated 15 plateaus of contiguous high-quality bauxite. Alliance Mining Commodities Ltd (AMC) has thoroughly explored the region and conducted a Bankable Feasibility Study (BFS), in which it found that extracting bauxite ore at the site to be commercially worthwhile.
AMC is a privately-owned firm and currently owns the rights to mine at the site. However, the Guinean government owns a 10% free carried interest in the firm. According to the firm the bauxite lies flat at the surface and is highly continuous and of low variability. As a result, the firm estimates that retrieval of bauxite from the area will be significantly less difficult than at other mines of the same size.
With an estimated 7.4 billion tons, Guinea has the world’s largest reserves of bauxite, a mineral used in the manufacture of aluminum, which is essential for the automotive and food industries. It is also the second largest producer. China imports about half of its bauxite needs from Guinea.
