WINDHOEK, Namibia Alufer
Mining Ltd. has reached an agreement with Chinas Hongfan
Industries for the development of its Bel Air bauxite project
in Guinea in a deal that could also result in a
5-million-tonne-per-year bauxite offtake arrangement.
Alufer, a mineral exploration
company with significant interests in the Republic of Guinea,
said Bel Air is expected to come onstream in 2015 with bauxite
production of 10 million tonnes annually.
It will cost $370 million to
bring the project into commercial production, and the junior
miner says a memorandum of understanding signed with Hongfan
forms part of the financing needs for the project.
Hongfan operates a number of
aluminum and alumina refineries in China, and has entered into
long-term offtake agreements with other bauxite companies,
"Alufers agreement with
Hongfan establishes a relationship with a significant partner
in the dominant Chinese bauxite import market," Alufer chief
executive officer Danny Keating said. "The (memorandum)
represents a major milestone in the growth of the company, and
is expected to form an integral part of the financing required
for the projects initial development capital."
The resource estimate at its Bel
Air project has also increased by 80 percent, the junior miner
A version of this article was first
published by AMM sister publication Metal