The financial and production activities of the Guyanese company, along with the majority of its property, infrastructure and deposits and aggregate reserves of 96 mln tonnes of bauxite, passed into the ownership of UC RUSAL’s subsidiary in Guyana: Bauxite Company of Guyana Inc. (BCGI)...

The privatisation by BCGI of the Guyanese state mining enterprise, AMC, was officially consolidated by an agreement, on asset acquisition and the order on transferring the assets to BCGI, signed by Samuel Hinds, the Prime Minister of Guyana. According to the framework agreement between UC RUSAL and the Government of Guyana, announced in January 2006, BCGI obtains AMC’s assets under its regulation in exchange for investment obligations totalling USD 22 mln. 10% of BCGI’s ownership is retained by the Government of Guyana.

Geography
Guyana is a small South American country. Before 1966, the country was a colony of Great Britain known as British Guiana. After 150 years of colonial rule, the country gained independence and accepted the name of Guyana which in one of the Indian languages means ‘the country of waters.’ In the south-western part of the country are the Guiana Highlands which are spread across the borders of neighbouring Venezuela, Brazil, and Surinam. The volume of bauxite reserves in Guyana is estimated at 700 mln tones; in Venezuela – about 320 mln tonnes; and in Brazil – 3.9 billion tonnes. The coastal belt of Guyana has an equatorial climate. The average annual temperature in Georgetown is 27°Ð¡, and average monthly temperatures fluctuate between 27.9° for the warmest month (September) to 26.3°.

In 2004, RUSAL also obtained a license for the development of the Linden deposit group with total reserves of over 100 mln tonnes of bauxite. At the Moblissa-Bamia and Tiger Jump bauxite deposits, which belong to the Linden group, RUSAL has completed the verification drilling geological works.  The deliverables are currently being processed, and geological information is being prepared for the draft feasibility study.
UC RUSAL is considering the opportunity to construct an alumina refinery based on the Linden deposit group. A decision on executing the draft feasibility study will be made when the results of the verification drilling are received

In Guyana, the Company also holds a license for the development of the Ituni deposit group, which has potential reserves of about 100 mln tonnes. Verification drilling of the deposit group was started at the end of 2006 and is ongoing.

Thus, the aggregate volume of high-quality reserves, according to the licenses which the Company possesses in the Republic of Guyana, amounts to over 200 mln tonnes, with the opportunity for accession of up to 245 mln tonnes.

The deposits in Guyana will ensure a stable supply of bauxite for loading the supplementary capacities at the Nikolaev Alumina Refinery and will allow alumina production performance to be increased through the use of higher quality raw materials.

Development

In 2007, BCGI began the implementation of a large-scale project on developing the new deposit, Kurubuku 22 in the Aroaima area, which has proven reserves of 45 mln tonnes. Within this project, BCGI is planning to invest funds in mine transportation equipment, the construction of a conveyor bridge across the Berbice River, and building new infrastructure for deposit maintenance. Currently, the Engineering & Construction Division of United Company RUSAL is preparing the project documentation. The approximate project cost is expected to be US$ 15 mln

Environment

Within the framework of the Kurubuku-22 deposit development project, BCGI has carried out an environmental impact assessment. The Company strictly adheres to Guyanese mining law in its operations and revegetation of open-cast mines

A long-term agreement has been reached with the community of American Indians and the Hururu tribe on whose territory the Kurubuku-22 deposit is located

According to this agreement, BCGI makes annual payments for the lease of the land. In the framework of the Amerind community development, BCGI has built water treatment and supply plants at the Hururu settlement. Furthermore, BCGI has installed electric power equipment at the Hururu settlement and supplies electricity from its own power generation capacities

Management

Managing Director – Alexey Gordymov

274 Peter Rose Street, Queenstown,
Georgetown, Demerara, Guyana
Tel: + 592 225 02 31
norma.pooran@rusal.ru

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