The US Department of War’s (DOW) Economic Defense Unit (EDU), in partnership with the Office of the Assistant Secretary of War for Industrial Base Policy on Friday announced a US$85.5 million equity investment agreement with Strategic Bauxite USA, LLC (SBX) through the Industrial Base Analysis and Sustainment (IBAS) programme.
It was recently announced that SBX had acquired the Bonasika-based First Bauxite.
The DOW said on Friday that the strategic partnership with SBX will establish a secure, vertically-integrated U.S. supply chain for refractory-grade bauxite, a vital material for national defence and key industrial base sectors.
“Our defense readiness relies on secure, regional access to critical minerals,” said Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy.
“This partnership with Strategic Bauxite through the equity funding and analysis provided by the IBAS program ensures that critical materials in the western hemisphere stay in supply chains that protect the United States and its allies”, Cadenazzi added.
The Department’s contribution of US$85.5 million from IBAS is complemented by an additional US$64.5 million co-investment from the private sector. The release said that these funds will be used to acquire and expand the First Bauxite (FBX) mine in Guyana, develop new calcination facilities for primary processing, and contribute to a follow-on project to build a brown-fused alumina (BFA) facility in the United States.
“This initiative addresses an over-dependence on imports for refractory-grade bauxite for the U.S. supply chain, with the vast majority sourced directly from China or Chinese-owned entities. “Once fully operational, this project is expected to meet 100% of U.S. military demand for BFA and 100% of U.S. demand for refractory bauxite. IBAS equity and direct investments are strategically targeted at critical supply chain bottlenecks, particularly where private venture capital has historically been hesitant to invest due to long developmental timelines”, the release said.
George K. Kollitides II, Director of the Economic Defense Unit said “The Department of War is no longer waiting for supply chain dependencies to be exploited”. He added “This agreement shows how EDU and the Department can partner with the commercial sector to rapidly turn opportunities into advantages for the warfighter.”
The DOW release said that refractory-grade bauxite is necessary for manufacturing high-temperature-resistant materials used to make critical components for warfighters such as heat shields, thermal barriers, and turbine engines in guided missiles, rockets, military aircraft, and space systems. Beyond defence, this high-purity bauxite is a vital raw material for steel and aluminum production, energy infrastructure, and industrial furnaces, the release said.
“This agreement also serves as an example of how the Department is coordinating across the interagency to support national security requirements. As part of the broader effort, the Department of State provided critical funding to support infrastructure associated with the project, enabling the U.S. government to act quickly and reinforce the long-term viability of the supply chain”, the release stated.
Website
Last week, Kiskadee Watch had reported that the website for Strategic Bauxite is no longer accessible, raising further questions about the company’s public profile and operations.
When Kiskadee Watch attempted to access the company’s website on Wednesday, the page was unavailable. The apparent disappearance comes just weeks after the acquisition was announced and after the site had displayed only a basic “Launching Soon” landing page with limited information about the company.
Efforts by Kiskadee Watch to obtain further information from the company have also gone unanswered. This publication had previously emailed First Bauxite Chief Sustainability Officer Elliott Lincoln, who undertook to forward relevant images, but no response was ever received to date.
Natural Resources Minister Vickram Bharrat had told Kiskadee Watch that the new owner of First Bauxite plans to invest US$100 million in its Guyana operations to expand production, create jobs and establish a processing facility that would allow for greater value-added production rather than exporting raw materials. He further shared that the investment is expected to increase production capacity while creating additional employment opportunities for Guyanese. There had been no mention then of the Department of War.
First Bauxite announced the ownership change on July 15, saying Strategic Bauxite had acquired the company, although the financial terms of the transaction were not disclosed.
Despite the scale of the proposed investment, little public information is available about Strategic Bauxite, including its ownership, financial standing, mining experience or previous projects.
At the time of the announcement, the company’s website consisted only of a contact form and no information on its executives, mining assets or corporate history. Public searches also failed to identify a documented record of previous mining operations or production under the Strategic Bauxite name.
Lincoln had previously said the new owner was expected to introduce itself publicly, but declined to provide further details, saying he preferred to allow Strategic Bauxite to do so. He added that there are no planned layoffs, the existing senior management team will remain in place, and the company will continue operating under the First Bauxite name.
The acquisition places Strategic Bauxite in control of First Bauxite’s Bonasika mining operations at a time of growing international interest in Guyana’s mineral resources.
Lincoln also said the Government approved the transaction before it was finalised. However, key questions remained unanswered, including the identities of the company’s ultimate beneficial owners, the value and financing of the acquisition, and the extent of its previous experience in the mining sector.
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