“AT a time when bauxite plants around the world and even in our Region have been closing operations, the domestic bauxite industry continued producing.”

This is according to Minister of Finance, Dr Ashni Singh, who, in presenting a report on the performances of the various local industries during his 2013 Budget presentation on Monday last, said that the industry is now poised to deliver further increases in its production.
Prefacing his comments to the National Assembly, Dr Singh reminded the House that the Guyana Government has worked hard to attract credible international investors to the local industry, and to ensure they maintain their operations even in the most hostile of external conditions.
He said that in recent years, the fortunes of the two major bauxite companies here continue to be mixed.
The Bosai operations, he said, continue to be supported by strong calcined bauxite prices of over US$400 per tonne, while the Bauxite Company Guyana Inc. (BCGI’s) operations has been challenged by costs that exceed prevailing market prices.
Nonetheless, Dr Singh says that increasing production and investment are expected to continue.
Bosai, he said, is planning to expand its product mix to include the production of metallurgical bauxite.
BCGI recently also completed a US$20M investment in mobile equipment.
As a result, the minister said that further increases in production are projected in 2013 and beyond, by both Bosai and BCGI.
He says that this is credited in large part to the continued substantial investments being made by both companies.
According to Dr Singh, Bosai’s projected investments continue to target increasing its volume.
“The company will continue to operate in the Dacoura and East Montgomery mines…BCGI will continue to invest in opening up its new mine at Kurubuka and making its operations more efficient, with production expected to commence in 2014 from this new mine.”
The minister reported to the House that BCGI’s operations continue to be less than cash positive, necessitating financial support from its parent company for continued investment and operating deficits.
He nonetheless argued that while higher levels of production, supported by these investments, are expected to lower average operating costs, it is recognised that Guyana’s production costs for metallurgical bauxite are generally in the higher tier, due to overburden, high logistical costs, and the high price of fuel for mobile equipment, drying and transportation operations.
Dr Singh also reported that a third bauxite company, First Bauxite Incorporated, is slated to start construction of a US$120M calcined operation later this year.
He assured that, “Government will continue to support the bauxite industry, recognising that for each company, the cost structure and the market prices are quite different.”