Lindian Resources inks MoU with China Railway Group for infrastructure development of Bauxite mining project

Lindian Resources, the ASX-listed West African bauxite mining company has finalized the memorandum of understanding (MoU) with Chinese giant, China Railway Seventh Group that will build a feasible infrastructure road map to support the development acceleration and kick-start bauxite production of the Perth-based company’s project in Guinea.

Lindian said: “Zhengzhou-headquartered China Railway Seventh Group, a wholly-owned subsidiary of state-owned construction enterprise China Railway Group Limited which is listed on the Hong Kong and Shanghai stock exchanges, has a proven track record in infrastructure project delivery throughout Africa.”

As per the terms of the MoU, both parties will consider towards entering a formal agreement to devise an infrastructure development plan for Lindian’s potential low CAPEX near-term pathway to becoming a bauxite producer, initially via its smaller Woula deposit.

While at the same time, they will look at infrastructure development options for Lindian’s larger, world-class Gaoual conglomerate and Lelouma projects.

Lindian Resources stated that vital elements of the infrastructure discussions with China Railway Seventh Group will incorporate defining the ownership and use of the infrastructure concerning Lindian’s projects, the timing and scope of any feasibility studies, and engineering, procurement and construction proposals.

Furthermore, China Railway Seventh Group may be able to assist in the appointment of development financing, and or offtake partners for Lindian’s bauxite projects. The parties will also examine the merits of a joint venture or consortium being formed.

China Railway Seventh Group has been active in West African nations like Guinea, Mali, Senegal and Sierra Leone and operates in 20 countries across Africa and the Middle East.

The Chinese firm has been involved in bridge, road and rail construction projects for mining and non-resources projects in Africa. For some projects in Africa, Lindian said: “China Railway Seventh Group has sourced additional funding from the Chinese Government.”

Lindian anticipates China Railway Seventh Group representatives to visit Guinea shortly to undertake a site inspection of Lindian’s bauxite projects –Lelouma, Gaoual and Woula.