Lindian Resources Ltd (ASX:LIN) finished the 2021 financial year strongly with eight new highly prospective tenements secured through the Lushoto and Pare bauxite projects in Eastern Tanzania’s Mozambique Belt adding to its considerable portfolio in the West African bauxite hotspot of Guinea.
This positions the company strongly as it believes that aluminium will play a major role in manufacturing as a lightweight, recyclable material that is key to crucial and rapidly growing industries focused on reducing carbon emissions.
Wind and solar power, carbon storage, electric vehicles, electric motors and energy storage markets will likely need large amounts of aluminium and with bauxite being the primary source of aluminium metal, a low-cost, sustainable supply is required to feed burgeoning aluminium demands.
The aluminium production sector is becoming progressively more focused on reducing CO2 emissions and Lindian believes its high alumina-content bauxites – which allow greater levels of transport and processing efficiencies – will become increasingly sought after.
Shares have been as much as 30% higher today, to an 18-month high of $0.035.
Logistical corridor in Guinea
While the company’s main focus has traditionally been its 75%-owned Gaoual Bauxite Project in Guinea, West Africa, it recently identified an opportunity to broaden its assets in Guinea, securing the Tier 1 Lelouma asset – a high-quality resource of 900 million tonnes – and the Woula asset, which is just 10 kilometres from an existing haul road linked to a river port.
Lindian means to combine these regional assets to create a logistical network along the ‘Northern Corridor’ – considered an area of exceptional quality bauxite – via linking them together with a deep-water export port terminal.
Read: Lindian Resources makes solid progress towards bringing Guinea bauxite projects to production
High grades generate confidence
The Gaoual Project’s maiden resource statement at the beginning of the year confirmed high grades for the resource, further confirmed by screening test-work which cemented LIN’s ability to leverage Gaoual to generate high-quality bauxite product. Initial feedback from the market indicates real demand for this product.
Considerable material interest from industry players, manufactures, refineries, marketing groups and international logistic providers reinforces Lindian’s claim that its product is highly sought after.
LIN has already signed a Memorandum of Understanding (MoU) with China Railway Seventh Group and the Government of Guinea, securing negotiations that will no doubt provide progress in due course.
Lindian chairman Asimwe Kabunga says that the company’s focus will be on significantly advancing the development of the ‘world-class’ bauxite portfolio to deliver tangible outcomes in the new financial year.
Read: Lindian Resources to fuel the future with 1 billion+ tonne Guinean bauxite resources
About the company
Lindian Resources is an Australian company with a portfolio of high-grade bauxite assets on both the West and East coasts of Africa.
The company’s current focus is the Gaoual Bauxite project in Guinea, West Africa, where it is proceeding with an option to acquire 75%. Gaoual is one of only two known ‘conglomerate bauxite’ occurrences discovered in Guinea, the other being Sangaredi which has been mined for over 30 years by Compagnie des Bauxites de Guinée.
Lindian has recently acquired interests in the Lushoto and Pare bauxite projects in Eastern Tanzania’s Mozambique Belt including eight highly prospective tenements.