SMM11, June 6: Cosco is in talks with Chinese shipyards to order about 25 large ships to transport bauxite from the West African country of Guinea to China for alumina refineries, the Wall Street Journal reported.
Guinea has the potential to become the world's largest supplier of bauxite, with 7.4 billion bauxite reserves, or about 25 per cent of the world's bauxite reserves. The country accounts for 95 per cent of African bauxite production and 15 per cent of world bauxite production. Recently, with the increase in demand for alumina and bauxite in China, as well as mining bans in countries such as Malaysia and Indonesia, there has been new interest in bauxite in Guinea.
At present, the United States, the Middle East and Russia are all trying to gain access to Guinea's huge bauxite deposits. "Cosco is looking for seven ships from the start and is expected to have more than 25 ships," said a source. "the first phase will transport about 6 million tons of bauxite, which will more than double as mine production increases."
Cosco will order ships of the capesize model, the largest ship to ship commodities such as bauxite and iron ore by sea, at an order cost of about $1.5 billion, according to shipyard officials.
Chinalco announced in May that it would invest an initial $164 million in the construction of a bauxite terminal and transport facility in the coastal town of Bofa (Boffa). Cosco bulk Shipping (Cosco Bulk Shipping) orders are scheduled to be completed next year and the first ships will be delivered in 2021. The company wants to rely on its own fleet rather than access to transportation from foreign shipowners.
Since 2012, Chinalco has been involved in the Guinean mining and Simandou iron ore project as a partner of Anglo-Australian miner Rio Tinto, in which Chinalco has a 40 per cent stake. Now, the company is expanding into bauxite mining, expanding the supply of its aluminium business.
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