Bosai Mineral preferred bidder for Omai Bauxite

The Chinese company Bosai Minerals Group Co., Ltd is the preferred bidder for the Omai Bauxite Mining Company Limited (OBMI) at Linden, according to sources.

Bosai, a privately-owned Group has interests covering industrial minerals manufacturing and international trading. Its main products are metal-grade Alumina, Brown Fused Alumina, Calcined Bauxite, Coke and Ferro-Alloys, according to its website.

At the end of 2005, the Chinese company had assets of over US$200M with 3,500 employees.

Earlier Stabroek News had quoted a source as saying that the Chinese company was the preferred bidder.

Jo, a Chinese Embassy official yesterday confirmed to Stabroek News after an inquiry that Bosai had put in a bid for OBMI. The Chinese official directed Stabroek News to the Prime Minister’s Office for further information. Inquiries to the Prime Minister’s office proved futile. Russian company Rusal was also touted as being interested in OBMI. Stabroek News understands that Bosai has a local representative.

Established in 1994, Bosai Minerals Group owns a total of 16 plants and companies in Chongqing, Guizhou, Tianjin, Guangxi, Hong Kong and in Germany. And its products are sold in more than 20 countries and areas in the world, such as Europe, North America, Japan and India, according to its website.

Its output and export volumes of Calcined Bauxite is No. 1 in China and the output and export volume of Brown Fused Alumina is No. 1 in Asia and No. 2 in the world, according to its website. Sources have said its key products have competed with Guyana’s on the world market.

In 2005 Bosai had an annual capacity of 200,000 tonnes of Calcined Bauxite; 120,000 tons of Brown Fused Alumina; 300,000 tons of Coke; 100,000 tons of Ferro-Alloys, with a total sales turnover of US$200M and an export turnover of US$50M.

The Bosai website stated that for 2006, the Group plans to reach a total sales turnover of above US$300M and for 2008 it expects to have a sales turnover above US$600M and to be listed in the “10 top Industry Companies in Chongqing” and the “three top privately owned enterprises in Chongqing”.

Earlier last month Iamgold Corporation acquired OBMI in its buyout of former owners’ Canadian firm, Cambior Inc. Before the buyout by Iamgold of Cambior, the latter already had plans in train to sell OBMI. Cambior had 13 years experience in gold mining here before moving into bauxite mining.

Cambior is still exploring for gold at its closed mining site at Omai. After closing the Essequibo mine the company had moved to Suriname. It is not clear what position Iamgold will take in relation to the continuing exploration.

Canada-based Iamgold, which is mainly a gold producer, operates in Botswana, Mali, Ghana and in Canada. In September, Cambior and Iamgold announced a US$3B transaction to create a new million ounces plus gold producer and to become the world’s tenth largest gold producer.

OBMI currently employs over 200 persons and in July had suspended its operations for two months at an estimated cost of US one million owing to heavy competition from Chinese bauxite on the international market.

According to an Iamgold press release in mid November, OBMI is expected to be sold before the year ends. (Nicosia Smith)

BILL HOLROYD

wgholroyd@prodigy.net wgholroyd@gmail.com SKYPE: wgholroyd Director – International Projects

BOSAI MINERALS GROUP CO LTD (formerly Nanchuan Minerals)

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