The Guyana Government has revealed that the bauxite mining business is back with a bang as 2024 witnessed a new high of production inflation amounting to 225 per cent as compared to 2023, with 1.7 million tonnes produced from the two overseas companies that mine in the nation. “Bauxite has been a success story over the last few years. In 2023, the production of bauxite was at 523,732 tonnes,” Minister of Natural Resources Vickram Bharrat said during his ministry’s annual review press conference.
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Earlier in January, Dr Mohamed Irfaan Ali, President of Guyana, proudly commented during his official statement on the substantial improvement of bauxite production in the country during his tenure. In his statement, he mentioned the distressful time before his tenure wherein both bauxite and forestry suffered immaculately owing to the APNU+AFC administration’s poor management.
Providing some insight into the sector, the Minister reiterated much of what President Irfaan Ali stated earlier, recording that while the withdrawal of the Russian-owned RUSAL led to a 40 per cent reduction in production and the loss of over 500 jobs, revitalisation by the two companies has now resulted in double that number being employed.
Ali had suggested that the government remains optimistic about the prospects for increased bauxite production this year, as the Bosai Minerals Group has been allocated additional land for mining. This is expected to increase output to 250,000 tonnes in 2025 and 400,000 tonnes in 2026, with 1,000 people employed by March.
As per an exclusive regional media request, Mr Bharrat has provided the production figures of the two bauxite-producing companies here over the past five years.
Bauxite production figures for the companies operating in the area were not provided, nor was the overall production target for 2025. Regarding employment, the President stated that the company expected to hire 500 people last year, with an additional 500 expected to be hired by March of this year, following the installation of a new kiln in Linden. It remains unclear how much of the 2024 employment target has been achieved.
“The installation of a new kiln in Linden, the first of its kind since the 1970s and the introduction of new metallurgic acid grade bauxite will also transform the sector and Project Linden,” he said.
Export of the mineral, as mentioned by Mr Bharrat, is expected to increase this year to 163.2 million tonnes.
President Ali had also echoed much of what senior minister in the Office of the President with Responsibility for Finance and Public Service, Dr Ashni Singh, had stated during the presentation of the 2024 Budget, predicting that the country’s bauxite industry was poised for substantial growth, bolstered by new reserves and investments.
The significance of the bauxite sector in the medium and long term was emphasised, with Singh noting that despite challenging market conditions in 2023, proactive measures had been implemented to reduce costs, diversify the product range, and enhance production. These efforts were expected to deliver a major turnaround in the bauxite industry by the end of last year.
Singh highlighted one of the most notable developments: the allocation of additional reserves in Kara Kara, amounting to 3.5 million tonnes. These reserves, he noted, were anticipated to boost production by Bosai Minerals Group in Linden by more than 250,000 tonnes in 2024 and 400,000 tonnes in 2025. These reserves will supply the existing kilns and the newly installed kiln number 15. The Finance Minister remarked that kiln number 15, which became operational in June 2023, was the first new kiln in Linden since the 1970s and represented a US$120 million investment.
Furthermore, the deployment of kiln number 15 and the introduction of the new metallurgic grade bauxite (MAZ) project are expected to transform the Linden area. To date, the company has invested US$30 million in mobile equipment, including hydraulic excavators, dump trucks, crane trucks, a water truck, and graders, specifically for the 2024 operations.
Additionally, a nine-kilometre conveyor system is set to link the new mine in Linden to a new port, from which bauxite will be transported via the river. These modern, self-propelled barges, each with a capacity of 13,000 tonnes, more than double the capacity of previous barges.
Singh also announced that to reduce energy costs, a 19-megawatt solar farm will be installed and is expected to supply power to both operations and the local community by the end of 2024. These investments are set to revolutionise economic activities in Linden while supporting community power generation, benefiting the construction and service sectors as well as local residents.
As a result of these initiatives, annual production of 4.5 million tonnes was projected, with one million tonnes expected to be achieved by the end of 2024. Moreover, over 500 new jobs were forecast for 2024, with an additional 500 expected by the first half of 2025.
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