Canadian bauxite firm bypasses Guyana for US$200M processing plant

June 21, 2015 | By KNews | Filed Under News, Source

A Canadian project developer which has concessions in Guyana to mine bauxite has bypassed this country, opting to build a processing plant in the US.

Canadian owned First Bauxite says it will sink US$200M in a US processing plant, using bauxite from Guyana.

First Bauxite Corp. on Thursday announced plans to invest US$200 million in the development of the processing plant on a 30-acre site on the Mississippi River at the Port of South Louisiana’s Globalplex Intermodal Terminal.

The announcement, according to a Global Trade online report, comes after the Toronto-based company said it had completed a feasibility study for the company to mine bauxite—an alumina-based ore—from Guyana, on the northern coast of South America, and ship it to the planned facility.

The terminal will use the bauxite to produce ceramic proppants for the oil and gas industry. Proppants are sands or manufactured ceramic materials added to an industrial fluid to keep a hydraulic facture open during or following the fracking process.

In the third quarter of 2015, First Bauxite plans to initiate discussions with third parties to develop strategic initiatives to finance the project. If financing for the project is secured, the planned construction period is 27 months, followed by an estimated three-year production ramp-up, the company said.

“Completion of our feasibility study is a significant milestone in the development of our bauxite industrial minerals project,” said First Bauxite CEO Alan Roughead. “The proposed facility will be located in a region offering competitive infrastructure, energy, labor and market access. We are very grateful for the assistance provided by LED [Louisiana Economic Development], the Port of South Louisiana and the local authorities and business community.”

The company is also expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.

First Bauxite Corporation describes itself as a Canadian firm engaged in the exploration and development of bauxite deposits through resource discovery and mining within a niche industrial market.
The company has its head office in Toronto and its current assets in Guyana.

It holds concessions in the Bonasika area, a few miles up the Essequibo River, covering deposits which were drilled in the 1940-60’s by ALCAN.
It says it has another concession in Tarakuli and is looking to develop this in the coming months.

The high cost of energy in Guyana has been a main grouse for investors who have initially been interested in building processing plants in Guyana.
First Bauxite says it plans to deliver a feasibility study to the Government of Guyana by this month end and has undertaken to initiate discussions to secure financing.

“The Company and the Government of Guyana will engage in discussions in regards to the Mining Licence to accommodate the production of proppants from the resource in Guyana.”

Interesting developments indeed for one may remember the issues with the PNC government and then DEMBA - Demerara Bauxite Company - in the early 1970's.

At that time, the PNC government demanded and got the operations of DEMBA basically for nothing.

However, at that time DEMBA was in the process of transporting equipment to fully upgrade the operations of DEMBA.

DEMBA immediately reshipped the equipment elsewhere and the PNC government ended up with absolutely nothing in their hand.

With such decision and development, the prospects of a hydroelectric power plant in basically reduced to nil.

The major use of the hydroelectric plant is the processing of bauxite at Mackenzie and of course enhanced electricity supply for industries and consumers.

The then proposed hydroelectric plant would not supply electricity to Essequibo and a few other areas, but to the major areas like MacKenzie, Georgetown and numerous other areas.

THEY HEARD THE PNC RULING NOW AND RAN!!!!!!!!!!!

another Jagdeo-era fraud company incorporated in Canada conning the Guyanese people

First Bauxite Corporation filed its Annual on Dec 30, 2014 for the period ending Sep 30, 2014. In this report its auditor, Deloitte & Touche LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern.

smfh!