Industry News

10-year lease signed: Lindian Resources to earn annual royalties from Woula Bauxite Project

Views : 4
Update time : 2024-11-11 16:40:22
The ASX-listed Australian company with a portfolio of high-grade bauxite in Africa, Lindian Resources Ltd has entered into binding agreements with Enterprise Generale d’Entretien & Construction and Lancinet Dabo, granting them a 10-year lease and operational rights for the Woula Bauxite Project in Guinea, West Africa. This arrangement secures Lindian a passive annual royalty stream.
The lessees, both well-established in Guinea with strong ties to the government and mining ministry, plan to commence construction within eight months. Their initial production goal is set at 2 million tonnes per year.

Lindian is set to earn a royalty ranging from US$1 to US$2 per tonne of bauxite produced, based on the ownership structure of the producing entity, for the entire production period. The company plans to transfer the Woula leases to the lessees once 10 million tonnes of bauxite have been produced or after a period of five years, whichever comes first.

The lessees are currently working to obtain the required exploitation licence for Woula and have initiated early-stage project activities, including mine planning and preparations for site access.

Lindian has secured preferential access to port facilities in northern Guinea, facilitating its bauxite export operations. This access agreement aligns with a consortium including the lessees, who have recently completed positive feasibility studies and obtained government approval for an independent export terminal in the Boké region. If the lessees gain port access for the Woula or related projects, Lindian will be granted priority access to any surplus capacity. This strategic arrangement could accelerate the development of Lindian’s Gaoual and Lelouma bauxite projects, which are currently in funding negotiations.

Related News
Read More >>
China's Guangxi Huasheng to complete alumina project by end-2024 China's Guangxi Huasheng to complete alumina project by end-2024
Nov .13.2024
China's Guangxi Huasheng to complete alumina project by end-2024
Aluminum stocks at Japan's 3 major ports slightly drop in Oct Aluminum stocks at Japan's 3 major ports slightly drop in Oct
Nov .13.2024
Aluminum stocks at Japan's 3 major ports slightly drop in Oct
Vietnam terminates AD measure on cold-rolled stainless steel from 4 countries Vietnam terminates AD measure on cold-rolled stainless steel from 4 countries
Nov .13.2024
Vietnam terminates AD measure on cold-rolled stainless steel from 4 countries
Ukraine’s crude steel & rolled products output rises in Oct, but facing deteriorating global steel market Ukraine’s crude steel & rolled products output rises in Oct, but facing deteriorating global steel market
Nov .13.2024
Ukraine’s crude steel & rolled products output rises in Oct, but facing deteriorating global steel market