Name and Location
Koumbia bauxite project, Guinea.

Client
Alliance Mining Commodities (AMC).

Project Description
The Koumbia project concession, which covers 728 km², is located in the world-renowned Boké bauxite belt of Guinea, with a total resource of 2.2-billion tonnes, grading 43.5% aluminium oxide.

A definitive feasibility study (DFS) completed on the Koumbia project has confirmed the financial and technical viability of a world-scale, long-life bauxite operation. The resource includes 305-million tonnes at 48% aluminium oxide (measured and indicated) and 250-million tonnes at 48% aluminium oxide (inferred). Reactive silica is 1.6%, with a high gibbsite content and an average thickness of less than 10 m, with no overburden. No drilling, blasting, crushing or screening is required to produce the proposed direct ship ore (DSO) product.

The DFS proposes a mine producing ten-million tonnes a year of high-quality DSO, with an overall projected mine life of more than 40 years.

Ore mined will be transported on a new rail line to a proposed river port site, on the Rio Nuñez. Barges will then transport the bauxite 100 km down river to deep water in the outer estuary, where the bauxite will be offloaded to a marine transshipper.

Value
$812-million.

Duration
Production is expected to start in 2016, ramping up to ten-million tonnes by 2018; however, development timelines are dependent on finding support for the project, with several funding options being progressed.

Latest Developments
In June 2013, AMC took a further key step towards the development of its 90%-owned Koumbia Bauxite project, after signing a landmark rail agreement with the government of Guinea, which confirms a viable infrastructure solution for the project.

The agreement encompasses two options for rail transport of production from the Koumbia project the construction of a 100 km rail line that connects to an existing 25 km section of rail, owned by government and operated by Compagnie Bauxite de Guinée; or the construction of a standalone 125-km-long rail line, extending from the mine site to a river port on the Rio Nunez in the Boké region.

It is estimated that a standalone line will cost an additional $70-million in capital expenditure, but would provide operational advantages and efficiencies for the project.

The pivotal rail deal follows the completion of a positive DFS on the project in November 2012 and the submission of the application for environmental- and social-impact assessments in March 2013.

AMC is also working with government on a review of the mining concession for the Koumbia project, signed in November 2010. This process is consistent with the Guinea government’s commitment to review all mining concessions granted during the previous term of government to ensure that they are in line with the general principles of the current mining code and are concluded in an open and transparent manner.

Pending the completion of this review process, AMC will finalise financing plans for the project and it remains confident that this can be achieved in 2013.

Key Contracts and Suppliers
Proteus EPCM Engineers (DFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
AMC, tel +61 8 9420 6700.