Partnership Opportunity for Bauxite Mine in Guinea
The government of Guinea wants to construct 8 different railways lines with different lengths within the country starting with a 52 KM railway line in the capital Conakry.
In order to deliver the first 52 KM,a feasibility study with a cost of $60M needs to be done. It will take between 4-5 months to complete. This feasibility will estimate the actual cost of the project in terms of construction.
The government of Guinea have the largest deposits of bauxite in the world. They have suggested that they can pay any investor in bauxite stock pile. They will grant the investor a bauxite license and land to exploit as much bauxite as needed in order to pay for their initial investment and ROI for both the feasibility and construction phase.
The government have stated that another option of payment will be on Build Operate and Transfer (BOT) terms. In this instance, the investor will pay for the building of the track, and will make their money back by operating the line till they get their initial investment and ROI back. In parallel, the investor can purchase some bauxite licenses from companies in Guinea who have the licences and mines but do not have the money to run the operations. These licenses cost around $100-$150M. Once the investor has bought these licences, they will have around 25 years of access to the mines assigned to the licenses.
Option 2 might be a better option as the investor will have access to the mines via the license they purchase for 25 years whereas under Option 1, they will only be able to exploit the bauxite till they get their ROI and initial investment back, which could take between 5-7 years.
Each of the other railway lines will also need feasibility and construction funding but we will first focus on the 52KM to Conakry to see how that works before we go ahead with the other railway lines.
In summary, this proposal is for access to large quantities of bauxite in Guinea through a collaboration with the local government and a consortium of groups.
Please contact Maria Christova in Mining Salons community.