Guinea’s Societé des Bauxites de Dabola-Tougue expects to begin the construction of a mine by the end of this year, which would allow it to exploit its large, untapped reserves of bauxite, the company’s chief executive said on Friday.
Iran holds a 51% stake in SBDT, which owns permits over 5,684 square kilometers. Guinea holds the remaining 49%.
“We are currently finalizing the feasibility studies. We plan to begin work before the end of this year,” Fode Diaby told Reuters.
The concession includes 13 bauxite plateaus at Dabola and 12 at Tougue, both in central Guinea, which have a combined reserve of over 600 million tons, according to the company.
The project has remained largely dormant since the original agreement between Guinea and Iran was signed in 1992. However, the two nations renewed the 25-year agreement last year.
Iranian Mines & Mining Industries Development & Renovation, a major state-owned holding company active in the mining sector, is now lending financial backing to the project, which is expected to cost more than $550 million.
“For the evacuation of the ore, we will construct a 325-km transport route. Eventually, a 33-hectare space at the Autonomous Port of Conakry will be developed,” Diaby said.
Guinea is home to the world’s largest reserves of bauxite, yet it ranks fourth in exports. The government is aiming to boost production by 30% before the end of 2016.
