Lindian Resources makes solid progress towards bringing Guinea bauxite projects to production

Lindian Resources Ltd (ASX:LIN) made solid progress in the June quarter with the primary focus being advancing its portfolio of world-class bauxite projects in Guinea. The main achievements during the period were defining the optimal export solution and confirming the unique and highly desirable quality of the product. Lindian has also advanced engagement with multiple infrastructure groups to establish the best logistical options for the project. “Assets with excellent attributes” Lindian chairman Asimwe Kabunga said: “Our board and team in Guinea has been working diligently on a number of fronts and whilst we have had limited market updates in the quarter, excellent progress has been made. “Lindian has a complimentary blend of bauxite assets with excellent attributes: some are close to the coast, they are exceptionally high quality with high grades, and they are massive untapped resources. “We are actively defining the best way to export product from these projects. “Ongoing discussions regarding Gaoual indicate that there are a variety of groups interested in this highly desirable and indeed unique product.” “Growing industry focus” Kabunga said: “With the increasing attention paid to the environmental impact of commodities, there is a growing focus from industry wanting to reduce the amount of bauxite they have to transport and to drastically lower red mud disposal. “As a result, higher grade bauxite, like what we have at Gaoual, has become much more desirable. “With a solid quarter of progress behind us, we are confident that the near-term will be transformational for Lindian. “We thank our shareholders for their continued commitment.” Accelerate development Lindian has signed an MoU with China Railway Seventh Group Co Ltd (CRSG) aimed at determining infrastructure solutions and to accelerate the development of its projects. The company’s focus during this engagement has been on the definition of the preferred export solution before the commencement of technical workstreams to progress the infrastructure studies to the next stage of development. CRSG workstreams are advancing as expected with detailed due diligence and technical engagement not uncovering any issues. Logistics corridor Lindian’s continues to work with the Guinean Government for potential exploration and joint development of the Port of Dobali and the associated logistics corridor in Guinea through its 75%-owned infrastructure subsidiary Terminal Logistics & Holding Pte Ltd. In parallel with commercial discussions including ownership structures and requirements for third party access, Terminal is planning to begin technical work including conducting marine bathymetry studies, seismic surveys as well as environmental and social impact studies. Longer-term strategy Lindian’s preliminary negotiations have started regarding the utilisation of existing road, rail and port infrastructure. The company’s longer-term strategy is to develop the ‘Northern Corridor’ to unlock the full potential of the portfolio but as an interim step, Lindian is exploring the opportunity to take advantage of the significant infrastructure developed in Guinea over the past 10 years to facilitate low capital, near-term production. In addition, the company has completed test-work at the high-grade Gaoual project with results demonstrating that screening resulted in a product with a quality of 58.2% aluminium oxide and 2.8% silica. - Ephrems Joseph