Iamgold (IMG-T, IAG-N, IGD-A) has sold its bauxite assets in Guyana to China’s Bosai Minerals for about US$46 million so it can focus on its core assets.
The bauxite assets include Omai Bauxite Mining and Omai Services, acquired by Cambior in December 2004 in a 70:30 partnership with the government of Guyana.
Iamgold bought Cambior last month to make the world’s tenth largest gold company and will now produce more than 1 million oz. gold a year.
Bosai Minerals will take on $18 million in third-party debt and pay Iamgold about US$28 million as a part of the deal, effective Dec. 31.
The open-pit mine has proven and probable mineral reserves of 62 million tonnes at 60% Al2O3, the mineral used to make aluminum.
Cambior’s 2006 bauxite sales were projected at US$63 million.
Cambior shut down the nearby Omai gold mine in 2005 after mining 3.7 million oz. gold over 13 years. The mine was closed due to the depletion of mineral resources.
The Cambior takeover also came with an underground niobium mine near Chicoutimi, Que., which had 2006 revenue projections of US$60 million, but Iamgold has no current plans to sell it.
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