26/11/2012 - 15:40

AMC puts $US812m price tag on bauxite mine

26/11/2012 - 15:40

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Privately-funded Alliance Mining Commodities has announced it will cost $812 million to develop its Koumbia bauxite project in Guinea, West Africa.

The Perth-based miner released the results of its definitive feasibility study for the Koumbia project today, which flagged commencement of production in 2016, ramping up to full capacity in 2018.

The Koumbia project comprises a high-grade bauxite resource at 305 million tonnes at 48 per cent, which is sufficient to underpin a 40 year mine life.

Mine, rail and port capital expenditure will come in at $812 million, with the funds to be repaid within five years.

AMC has forecast life of mine revenue to exceed $US7 billion.

Operating costs are expected to be around $US11/tonne, Alliance said.

“The delivery of the definitive feasibility study represents the culmination of more than six years of work by our teams in Guinea and Australia,” managing director Bob Adam said.

“We have established a very strong technical team with a strong understanding and detailed experience of in-country processes, solid relationships with the government and significant experience in project management and resource development.”

AMC owns a 90 per cent stake in the Koumbia project.

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