【Ferro-alloys.com】: 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.

Generale d'Entretien & Construction's Lancinet Dabo said, "We are delighted to have secured this binding agreement with Lindian for the Woula Bauxite Project, a unique, low-cost, fast start-up opportunity."

"We have commenced some initial works which should be seen by Lindian's shareholders as a clear indication of our ability to secure the Exploitation Licence for Woula very soon. We look forward to rapidly advancing the project into production."

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.

The proposed port infrastructure, spearheaded by SIG Infrastructure, the lessees, and STS Group, aims to address logistical hurdles in bauxite exportation. An internationally benchmarked feasibility study confirmed that the port can support a multi-user terminal with an annual handling capacity of 20 million tonnes. Key planned facilities include barge piers, advanced loading systems, and extensive storage units.

Furthermore, Lindian is actively evaluating development pathways for its other Guinea-based bauxite projects, Lelouma and Gaoual. Ongoing discussions with current Memorandum of Understanding partners and potential new stakeholders are part of these efforts.
Asimwe Kabunga, Executive Chairman of Lindian Resources, said, "This binding lease and royalty agreement with a well-established Guinean company and executive will deliver a meaningful passive annual royalty stream to Lindian."

"It marks the first step in the company monetising its bauxite assets and, importantly, does not require us to make any capital contribution."

"The parties have already commenced some work streams in anticipation of the Exploitation Licence being granted, and we will provide updates on the project's development through to the first production being achieved."

• [Editor:Alakay]