Lindian to supply bauxite to CBG from its Gaoual Bauxite Project via MoU

September 4, 2023
12:01 pm

Lindian Resources Limited (ASX:LIN) (“Lindian” or “the Company”) recently confirmed that it has signed a Memorandum of Understanding (‘MOU’) with Compagnie des Bauxites de Guinée (CBG), to explore the supply of bauxite from its Gaoual project to add to CBG’s annual bauxite production through a possible sales contract between the Parties. The MOU provides the framework for the parties to:

Explore various methods of operating, processing, and transporting ore from the Gaoual project to CBG’s infrastructure;
Assess procurement, quantity/quality determination, selling prices, selling price adjustment mechanisms, penalties/bonuses, and payments between the Parties;
Complete a Feasibility Study for the Gaoual project within two years that meets CBG’s JORC criteria for the publication of reserves and resources (including certain drilling density, and bauxite density and does not contain any element harmful to a subsequent metallurgical process); and
The Parties will also negotiate in good faith a possible contract for the sale of bauxite within two years from the start date of this MOU.

Lindian’s Executive Chairman Asimwe Kabunga said: “We are delighted to be collaborating with CBG to advance Gaoual. They have an exceptional pedigree as one of the world’s most respected and largest bauxite producers and suppliers. We have been advancing discussions with them for a number of years on the potential development of Guinea’s next Conglomerate Bauxite project and this MOU marks a very meaningful step in this process. As one of Guinea’s most established bauxite producers with extensive mining operations and infrastructure access, a potential partnership delivers obvious benefits to all stakeholders, most importantly the local community and the government of Guinea. The MOU provides an excellent framework to rapidly advance Gaoual.”

Lindian also commits during its Feasibility Study, commissioning, and operation phases to meet the requirements of the Aluminium Stewardship Initiative (ASI) Standard and also the International Finance Corporation performance standards to which CBG is bound. Lindian looks forward to working with CBG to advance this unique opportunity and to unlocking Gaoual’s considerable value.

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