Japan’s shipping major Mitsui O.S.K .Lines (MOL) has signed an agreement to transport bauxite for a five-year period with mineral exploration and development company Alufer Mining Limited.
Under the agreement, MOL’s ocean shipping services would support Alufer’s Bel Air bauxite mine project in the Republic of Guinea, which is scheduled to commence bauxite production in the third quarter of 2018.
The company estimated that the project would reach production of 5.5 million tonnes per annum.
Alufer, which has significant bauxite interests in Guinea, received all required permissions from the country’s government to building the Bel Air bauxite mine and construction started in January 2017. The mine is located 15 km from the coast near the Cap Verga peninsula.
The company is also building and will operate the new Cap Verga export facility which will enable the loading of Capesize vessels anchored 32 km from the coast.
MOL informed that it continues “to take a proactive stance in providing safe, reliable and efficient transport of bauxite” from the Republic of Guinea and anticipates strong growth in demand for this commodity. The current market for seaborne bauxite is around 100 mt per annum and is forecast to grow 40% by 2025, primarily driven by import requirements in China.