Bonasika Bauxite mine in Guyana gets started mining exploitation: First Bauxite Company

The US-based First Bauxite’s subsidiary company Guyana Industrial Minerals Inc. (GINMIN), on 21^st February’20, started its mining operation and processing plant at Bonasika mine, Essequibo Islands-West Demerara region. A $100 million investment assurance can enhance it to a world-class operation.

The start of mining exploitation at the Bonasika project marks a noteworthy accomplishment for the organization, which started its pre-mining operation here in 2008.

First Bauxite’s Board Chairman Thibault Van Stratum said in brief remarks when he addressed the gathering of workers and special invitees at the commissioning “We will gladly admit that we have taken our time to put this mine in operation but as we say today is the day.”

It has been projected that the Bonasika Bauxite Project can deliver annual production of 320,000 tonnes of washed bauxite when it gets stabilized to produce in full capacity. The geological test results showed that the bauxite ore found in Bonasika mine is then refined in the world and hence it can be used to build esteemed tertiary products for exclusive needs.

Van Stratum noted that “within the last year the company has been marketing the ore to potential clients. We are very encouraged about the signals we have been getting from the markets. The interest is not only coming from the North American market but also Europe and increasingly from Asia.”

The projected expectancy is in between 15-17 years, though the company made public that other precautionary measures could out-stretch the mine’s lifespan to about 25 years. The total estimated investment in the local economy could reach about $387 million over 15 years.

Van Stratum said “the company is committed to making the necessary investments and wherever it sees potential in the future to continue to enhance the operation; it would seek to realize it. We see this as a long term investment and that is our commitment to you. Rest assured that First Bauxite will make you and your country proud. We will produce and operate according to world-class practices. That is our commitment to you.”

Chief Executive Officer Bill Rice said that the company is committed to introducing the highest international standards during its operations.

Bill Rice further said that the company will show respect to all and in doing so it is committed to “giving all the people that work for our opportunities to grow and develop to their full potential. We think that’s one of the areas [where] we can help them. We can help the country and we can help ourselves by allowing people to learn, to be able to take on new skills, new responsibilities and continue to grow.”

The Minister of Natural Resources Raphael Trotman showered the project and said that foreign investors like First Bauxite could support by bringing much required innovative technology and investment to gather a mature and qualified local human resource.

The total revenue earning for Guyana to reach around $49.8 million is estimated over 15 years of operations, which includes a 3% royalty pegged to work out to be US$6.4 million, a mining license fee of US$1.42 Million, Employee PAYE taxes of US$18.95 million, as well as Withholding Tax and Company Tax of US$5.53 million and US$17.47 million, respectively.

As per Iana Seales, Human Resources Manager, presently there are 8 expatriates employees, 95 permanent employees and130 contracted workers.

Prime Minister of Guyana, Moses Nagamootoo attended the commissioning ceremony along with Finance Minister Winston Jordan. The US Embassy’s Political and Economic Counsellor Alexandra King Pile, Commissioner of the Guyana Geology Mines Commission Newell Dennison, acting Commissioner of the Guyana Forestry Commission Gavin Agard, and representatives from the Environmental Protection Agency were the major other attendees.