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Bolaven bauxite mine one step closer to reality
Development of a bauxite mining project on the Bolaven Plateau in the southern province of Champassak has reached a new milestone after a construction contract was signed.
Sino Australian Res ources Company (SARCO), an Australia-China joint venture, last week signed a Memorandum of Understanding with China Non-Ferrous Metal Industry's Foreign Engineering and Construction Co. Ltd for engineering, procurement and construction of its aluminium processing facilities on the Bolaven Plateau.
Under the Memorandum of Understanding, the Chinese company will act as a contractor for SARCO. The cost of the construction is US$1,000 per tonne of capacity and the total contract value will be US$600 million.
The Chinese contractor will deliver the fully operational aluminium refinery to Sino Australian Resources Co within two years, and will also provide technical assistance and training after the refinery begins operation, according to the official website of Ord River Resources, which holds a 49 percent stake in SARCO.
China Non-Ferrous Metal Industry (NFC) holds the rest of the shares in the joint venture. NFC is an EPC specialist firm with world leading aluminium refinery design, engineering, manufacturing and construction capabilities.
The company has a track record of successful project delivery and has designed and built 60 percent of China's aluminium refineries.
In addition, NFC has preferential long term financing support from China Eximbank, China Development Bank and China Minshing Banking Corporation (CMBC).
CMBC intends to provide the necessary project financing for SARCO. The bank is one of the largest privately owned and listed banks in China (listed on the Shanghai Stock Exchange), with a market capitalisation of 160 billion yuan.
Ord River said discussions are continuing with CMBC regarding the project's financing needs. Ord River said, “We plan to secure the best project financing package agreement prior to the IPO of SARCO.”
The Australian company is now targeting an extensive quality bauxite resource on the Bolaven Plateau over an aggregate area of 487 km2 and is on track to complete the feasibility study by mid-2011. At the project site, the company is currently focused on geological data management, sample analysis, hydro engineering and environmental geological data management.
vientiane times
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