Lindian Resources is set to commercialize its Gaoual bauxite project in Guinea, signing a memorandum of understanding (MOU) for a potential sales agreement with the recognized miner, Compagnie des Bauxites de Guinée (CBG).
Lindian has pledged to finalize a feasibility study for its substantial 102-million-metric-ton deposit within a two-year timeframe. Concurrently, negotiations will ensue for a sales contract targeting the high-aluminium oxide yield.
Lindian Resources executive chairman Asimwe Kabunga said in a press release that the agreement was a major step forward.
“We are delighted to be collaborating with CBG to advance Gaoual. They have exceptional pedigree as one of the world’s most respected and largest bauxite producers and suppliers. We have been advancing discussions with them for a number of years on the potential development of Guinea’s next Conglomerate Bauxite project and this MOU marks a very meaningful step in this process. As one of Guinea’s most established bauxite producers with extensive mining operations and infrastructure access, a potential partnership delivers obvious benefits to all stakeholders, most importantly the local community and the government of Guinea. The MOU provides an excellent framework to rapidly advance Gaoual.”
CBG, with a focus on Guinean bauxite mining, boasts exports exceeding 16 million metric tons of superior-grade bauxite annually. Ownership splits are 49% for the Guinean State and 51% combined for US-based Halco Mining, Rio Tinto-Alcan, Alcoa, and Dadco Investments.
This new MOU maps out strategies for Lindian and CBG to determine operational, processing, and transportation procedures linking the Gaoual project to CBG’s existing infrastructure. Price setting, quantity and quality standards, as well as payment structures, will also be discussed.
Highlighting the Gaoual project’s value is its resource indication of 101.5 million metric tons with 49.8% aluminium oxide content. Additionally, an impressive 83.8 million tonnes boasts a high-grade content of 51.2% aluminium oxide. Its strategic location situates it near renowned bauxite mining operations, benefiting from significant infrastructure.
The ore from Gaoual received affirmative results in a 2021 screening test. Findings revealed an 8.6% increase in average alumina grade, complemented by a 71.4% reduction in average silica grade.
Gaoual’s deposit is dubbed as “conglomerate bauxite,” one of only two in Guinea. The second, Sangaredi, has been in CBG’s control for three decades.
Lindian’s acquisition of the Gaoual project in April 2019 has accelerated its maturation. This MOU represents a significant step forward for the project.
The project is adjacent to several significant bauxite deposits, including Alliance Mining Commodities’ Koumbia, which holds roughly 2% of global bauxite at 2.2 billion metric tons.
However, this update diverges from Lindian’s recent headlines focusing on the Kangankunde rare earths project in Malawi. Preliminary resource estimates for Kangankunde have been released, hinting at the project’s enormous potential in the realm of rare earths.
