US Commits $150 Million Public-Private Investment to Expand First Bauxite Mine in Guyana

The US Department of War has announced an $85.5 million equity investment in Strategic Bauxite USA LLC (SBX) to expand access to bauxite and strengthen domestic alumina production. The funding, matched by $64.5 million from private investors, will support the expansion of the First Bauxite mine in Guyana, new calcination facilities and the construction of a brown-fused alumina facility in the United States.

"Our defence readiness relies on secure, regional access to critical minerals," said Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy. "This partnership with Strategic Bauxite through the equity funding and analysis provided by the IBAS program ensures that critical materials in the western hemisphere stay in supply chains that protect the United States and its allies."

This initiative seeks to reduce US dependence on imported refractory-grade bauxite, primarily sourced from China or Chinese-owned entities. Once operational, the project is expected to meet all US military demand for BFA and refractory bauxite. IBAS investments address critical supply chain bottlenecks, particularly where private capital has been hesitant due to long development timelines.

"The Department of War is no longer waiting for supply chain dependencies to be exploited," said George K. Kollitides II, Director of the Economic Defence Unit. "This agreement shows how EDU and the Department can partner with the commercial sector to turn opportunities into advantages for the warfighter rapidly."  

Refractory-grade bauxite is essential for producing high-temperature-resistant materials used in critical components, including heat shields, thermal barriers, and turbine engines for missiles, rockets, military aircraft, and space systems.

Beyond defence, high-purity bauxite is vital for steel and aluminum production, energy infrastructure, and industrial furnaces, making it fundamental to a modern industrial economy.

This agreement highlights the Department's interagency coordination in support of national security.

As part of this effort, the Department of State provided key funding for project infrastructure, enabling the U.S. government to respond quickly and strengthen the long-term supply chain.