Bosai Mining acquires South America bauxite mining company

Bosai Mining Co. Ltd. bought a controlling stake in Omar Bauxite Inc. in Guyana for $100 million, a company official said Thursday.

Bosai Mining now holds a 70 percent share of the South American firm and will assume management responsibilities at the start of next year, said Ma Ying, a senior official with Bosai.

Omar Bauxite is able to produce 400,000 tons of calcined bauxite a year, and Bosai Mining will use the product to make refractory materials. Bosai Mining plans to exploit Omar's bauxite reserves of nearly 200 million tons to increase its alumina capacity.

However, Ma said this is a long-term plan because currently the alumina price is at rock bottom and Bosai Mining does not plan to increase its capacity in the near future.

Bosai Mining is a privately-owned bauxite miner and alumina maker in southwestern China's Chongqing Municipality and can produce 200,000 tons of alumina and nearly 20,000 tons of aluminium a year.