A Canadian project developer which has concessions in Guyana to mine bauxite has bypassed this country, opting to build a processing plant in the US.
First Bauxite Corp. on Thursday announced plans to invest US$200 million in the development of the processing plant on a 30-acre site on the Mississippi River at the Port of South Louisiana’s Globalplex Intermodal Terminal.
The announcement, according to a Global Trade online report, comes after the Toronto-based company said it had completed a feasibility study for the company to mine bauxite—an alumina-based ore—from Guyana, on the northern coast of South America, and ship it to the planned facility.
The terminal will use the bauxite to produce ceramic proppants for the oil and gas industry. Proppants are sands or manufactured ceramic materials added to an industrial fluid to keep a hydraulic facture open during or following the fracking process.
In the third quarter of 2015, First Bauxite plans to initiate discussions with third parties to develop strategic initiatives to finance the project. If financing for the project is secured, the planned construction period is 27 months, followed by an estimated three-year production ramp-up, the company said.
“Completion of our feasibility study is a significant milestone in the development of our bauxite industrial minerals project,” said First Bauxite CEO Alan Roughead. “The proposed facility will be located in a region offering competitive infrastructure, energy, labor and market access. We are very grateful for the assistance provided by LED [Louisiana Economic Development], the Port of South Louisiana and the local authorities and business community.”
The company is also expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.
First Bauxite Corporation describes itself as a Canadian firm engaged in the exploration and development of bauxite deposits through resource discovery and mining within a niche industrial market.
The company has its head office in Toronto and its current assets in Guyana.
It holds concessions in the Bonasika area, a few miles up the Essequibo River, covering deposits which were drilled in the 1940-60’s by ALCAN.
It says it has another concession in Tarakuli and is looking to develop this in the coming months.
The high cost of energy in Guyana has been a main grouse for investors who have initially been interested in building processing plants in Guyana.
First Bauxite says it plans to deliver a feasibility study to the Government of Guyana by this month end and has undertaken to initiate discussions to secure financing.
“The Company and the Government of Guyana will engage in discussions in regards to the Mining Licence to accommodate the production of proppants from the resource in Guyana.”
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