Berbice bauxite revival: RUSAL cleared to return at full capacity

The much-needed good news in the global bauxite sector is here. The Russian-owned bauxite operator, RUSAL, as announced by the Government, would return with full operational capacity on the Berbice River, while the sector is undergoing plans for expansion. The announcement also included that the bauxite firm is receiving a two-year extension of the precious agreement made for the Aroaima mine, which is now back to full operations.

After almost six years, RUSAL came back into its original form, especially after it halted operations. The firm holds the APNU+AFC administration responsible for the previous closure of the Berbice bauxite operation due to what the minister called "neglect and mismanagement", dating back to 2020.

The plant closure was followed by the workers' strike, which ended with negotiations, dated back to 2019, taking place between Guyana Bauxite and the General Workers Union (GBGWU) and RUSAL. The labourers' negotiation demands were deemed to be more of a deadlock than a solution to the current problems.

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Due to this, previously, the firm put a hold on its operations, which resulted in terminating the contracts of 300 workers. The disagreement between the company and the workers has been a decade-long battle and has been mainly centred around wages and working conditions.

Given the recent announcement of restarting the operations, the firm has not yet disclosed the terms upon which this new agreement has been drafted. Upon this approval, this year's major focus will be on rebuilding the essential infrastructure and the operational systems, assuring that the commencement of full operations will begin by the end of 2027.

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During the 2026 Budget presentation, the Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh announced, "Mr Speaker, I am now pleased to announce that just a few days ago government granted approval for the restart of operations in the Berbice River, where operations had ceased in 2020 due to neglect and mismanagement of the sector by the APNU/AFC."

The restarting of the operations on the Berbice River renews the confidence and investment in Guyana's bauxite industry. As stated by Dr Singh, the sector, after this approval, is showing "extremely strong prospects", which aligns with the continued growth achieved in 2025 due to the inflow of foreign investments and proper policies. 

To know more about the global bauxite industry outlook, book the report “Global ALuminium Industry Outlook 2026".