Chinese company invests US$115M to improve bauxite production in Guyana

– Pres Ali says Bosai will be held accountable for commitments

With the aim of mass producing a higher grade of bauxite, China-based Bosai Minerals Group Guyana Inc. (BMGG) will be injecting some US$115 million into a ‘mass project’ that will advance its local operations.
This announcement was made on Friday by the Managing Director of the Bosai Group, Yuan Zhilun, at the commissioning ceremony of a new rotary kiln #15 at the company’s mining site in Linden, Region 10 (Upper Demerara-Upper Berbice).
Yuan Zhilun explained that there has been a decline in the demand for raw materials resulting in the sale revenue of BMGG dropping by some 20 per cent last year. With the demand forecasted to further reduce, Bosai is looking to expand its operations in Guyana.

To this end, Yuan noted that the newly commissioned rotary kiln will not only enhance efficiency but also reduce production costs.
“After the old kilns are phased out, we are confident that the new rotary kiln #15 and the dry kiln #16 will bring about higher efficiency and lower production costs, especially in terms of kiln #15. It is the first new kiln to be built by BMGG since the 1970s. With the capacity of 1.5 times that of our old one, it will take the productivity of BMGG through new heights, laying a solid foundation for the sustainable development of the company.”
With the need to reinforce new ideas and develop new products, the Bosai official noted that the company will soon be launching the construction of its mass project. This initiative will see the company bringing in even more high-powered equipment such as a bulldozer and other mobile devices.
Additionally, the Chinese company will also be expanding the ship-loading port as well as setting up a new transshipment platform in Georgetown.
Demonstrating its commitment to sustainable development, Bosai will be offsetting the impact of its mining activities on the environment with the installation of a conveyor belt – 90 kilometres from the mining site to the port – to replace the bauxite auto-haulage system.
After its commissioning, Yuan pointed out that this US$115 million mass project will see some 400 direct job opportunities being created. He added that the initiative is pegged to generate approximately US$200 million annually.
This massive investment by the Chinese company was acknowledged by President Dr Irfaan Ali, who noted that while Bosai is undertaking a massive expansion of its Guyana operation, any new developments will be dependent on the company fulfilling its current commitments.
Among the current planned developments that Bosai has for its operations in Guyana is a 12 megawatt (MW) solar power project. This solar project is expected to start this year and will be used to power the company’s operations.
“This, perhaps, will be one of the largest private sector investments in renewable energy for their own operations maybe in the entire region,” the Head of State noted.
In addition, the Chinese company will also be undertaking the construction of a US$470 million aluminum plant, which will bring hundreds of new jobs to Region 10.
“So, we want to hear your time schedule on the building of that aluminum plant and that will be linked to unlocking new areas. So, we’re not taking the presentation and sleeping on it. We are now going to put you to the test to ensure that any decision is based on achievable targets that we’re setting. We want the aluminum plant; you promised the US$470 million investment and now we’re hoping to see a schedule of action to realise this,” the Guyanese Leader posited.
Nevertheless, President Ali went onto emphasise that while the government is committed to ensuring the viability of Bosai’s investment, the company must work towards meeting its targets.
“We are not separate on this journey to ensure that this investment is viable. Therefore, we want to see you accomplish the targets that you set for 2023. I notice in the figures that you’re at 132,000 tonnes at the moment. Your target is closer to 470,000 tonnes for the year. So, I look forward to hearing from you on how you’re going to accelerate [production]. I know the kiln was one of the bugbears and now that it is in operation you will have an accelerated moment towards accomplishing that target. So, we’re holding you accountable to that target,” he stated.
However, even as he charged the company to fast-track its production, the Head of State cautioned the company to ensure the advancement of Guyanese workers and their rights.
“Our policy-making must be one in which investments are not encouraged but at the same time, [must be] one in which the workers’ rights, privilege and their advancements is also protected. And that is the objective of the policy-making in moving this sector forward,” Ali stressed.
Meanwhile, the Chinese Ambassador to Guyana Guo Haiyan noted that this investment by Bosai to boost its operations is reflective of the deepening confidence of Chinese investors in the Guyanese economy especially in the mining sector.
“Cooperation in the mining sector between China and Guyana is significant. Chinese mining companies have made big amounts of investments in Guyana to enhance productivity and export. These mining companies here have created over 2,500 jobs for local people, increased their incomes, and help improve their livelihoods,” Ambassador Guo noted.
Bosai has been operating in Guyana since 2007. Local bauxite production has been increasing over the last three years, moving from 608,000 tonnes in 2020 to 705,000 tonnes in 2022 with an average of more than 600,000 tonnes in the last three years. In 2022, Guyanese earned some US$98.9 million in bauxite exports – an increase of 23.6 per cent over the previous year. (G-8)