Lindian lands MoU with China giant over infrastructure plan

ASX-listed West African bauxite hopeful, Lindian Resources has clinched a memorandum of understanding, or “MoU” with Chinese construction company China Railway Seventh Group that will weigh up a possible infrastructure road map to help accelerate development of, and kickstart bauxite production at, the Perth-based company’s assets in Guinea.

Lindian says Zhengzhou-headquartered China Railway Seventh Group, a wholly owned subsidiary of state-owned construction enterprise China Railway Group Limited which is listed on the Hong Kong and Shanghai stock exchanges, has a proven track record in infrastructure project delivery throughout Africa.

Under the terms of their MoU, both parties will consider entering a formal agreement to devise an infrastructure development plan for Lindian’s potential low CAPEX near-term pathway to becoming a bauxite producer, initially via its smaller Woula deposit.

At the same time, they will look at infrastructure development options for Lindian’s larger, world-class Gaoual conglomerate and Lelouma projects.

According to Lindian, key elements of the infrastructure discussions with China Railway Seventh Group will include defining the ownership and use of the infrastructure in relation to Lindian’s projects, the timing and scope of any feasibility studies, and engineering, procurement and construction proposals.

In addition, China Railway Seventh Group may be able to assist in the appointment of development financing, and or offtake partners for Lindian’s bauxite projects. The parties will also examine the merits of a joint venture or consortium being formed.

Lindian Resources Chairman, Asimwe Kabunga said: “This is a very exciting development for Lindian and highlights our ability to attract high-calibre development partners. The China Railway Seventh Group discussions bring to the table the important milestone of the infrastructure solution and we expect to now accelerate development as we enter this next stage of the company’s evolution.”

In West Africa, China Railway Seventh Group has been active in Guinea, Mali, Senegal and Sierra Leone, and operates in 20 countries across Africa and the Middle East.

It has been involved in bridge, road and rail construction projects for mining and non-resources projects in Africa. For some projects in Africa, Lindian says China Railway Seventh Group has sourced additional funding from the Chinese Government.

Lindian expects China Railway Seventh Group representatives to visit Guinea shortly to undertake a site inspection of Lindian’s bauxite projects –Lelouma, Gaoual and Woula.

Lelouma hosts a near-surface measured, indicated and inferred mineral resource of 900 million tonnes of ore at an average grade of 45 per cent aluminium oxide including a higher-grade portion of 398 million tonnes at 48.1 per cent aluminium oxide.

Gaoual’s mineral resource estimate currently stands at an indicated 101.5 million tonnes of ore going 49.8 per cent aluminium oxide including a higher-grade portion of 83.8 million tonnes at 51.2 per cent aluminium oxide. Woula hosts an inferred resource of 19 million tonnes of ore grading 41.7 per cent aluminium oxide.

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