Rusal suspends all bauxite operations in Guyana on continued unrest

Rusal owns 90% of BCGI, based in Georgetown, which has an annual production capacity of 2.3 million tonnes of bauxite. The remaining 10% belongs to the Guyanese government. Rusal also owns licenses to develop Linden, Kwakwani and Ituni deposits groups in Guyana.

“The suspension of BCGI will have no impact on the company’s overall performance, as the expected decline in the overall bauxite supply from Guyana will be substituted with raw material from other mines,” Rusal said in its announcement.

Rusal said the decision to suspend operation comes after continued unrest and that its opportunities for doing further business in Guyana are now severely limited.

“As a result of serious illegitimate actions that have gone beyond the control of government and enforcement agencies, including arson of the electricity pylon basement and other corporate property, and blocking of the river, Rusal considers it prudent to suspend and mothball operations of BCGI,” Rusal added.

The producer said written notices of termination have been sent to 326 employees and on the grounds of security and safety, all expatriate employees have been relocated.

Rusal own a number of other bauxite mines including two in Guinea – the Friguia bauxite and alumina complex which produces 2.1 million tonnes per year and Compagnie des Bauxites de Kindia (CBK) which produces 3.2 million tpy.

CBK is Rusal’s largest raw materials asset and accounts for about 30% of the company’s total bauxite output. Guinea is a significant bauxite supplier with about 25% of the world’s total bauxite reserves.

Fastmarkets assessed the monthly bauxite, fob Kamsar, Guinea price at $36 per tonne on Thursday January 16, stable since November 2019 with most bauxite concluded on a long-term basis.

Rusal also owns two bauxite facilities in Russia as well as Windalco, a joint venture between Rusal and the government of Jamaica, which produces 5 million tpy bauxite.