Lindian Resources' Strategic Expansion in Guinea
Lindian Resources Limited (ASX) has entered a pivotal 10-year lease and royalty agreement with Guinea-based Enterprise Generale d’Entretien & Construction and Lancinet Dabo (collectively, the Lessees) to oversee operations at its Woula bauxite project in Guinea, West Africa. The agreement not only grants the Lessees operating rights but also aligns with Lindian’s long-term monetization strategy for its bauxite assets without capital expenditure.
Operational Goals and Royalties
The Lessees are committed to accelerating the Woula project to the construction phase within eight months, targeting an annual production of 2 million tonnes of bauxite. Under the agreement, Lindian will receive royalties ranging from US$1 to US$2 per tonne based on the ownership structure, generating a steady revenue stream as long as bauxite production continues. Additionally, Lindian has secured preferential port access rights through the Lessees’ connections, which could facilitate future developments at Lindian’s Gaoual and Lelouma projects.
Further Development and Buy-Out Options
The lease includes a potential buy-out option for the Lessees, allowing them to acquire Lindian’s interest in Woula at a set price, which starts at US$15 million in the first year and reduces by US$1 million annually. If exercised, this option would transfer full ownership and operational control to the Lessees, streamlining Lindian’s portfolio while maintaining substantial returns.
Port and Infrastructure Development
The Lessees are part of a consortium establishing a multi-user port terminal in Boké, enhancing Guinea’s mineral export capacity. The feasibility study, conducted to international standards, supports an annual capacity of up to 20 million tonnes, providing significant logistical support for Lindian’s bauxite operations.
Executive Commentary
Lindian’s Executive Chairman, Asimwe Kabunga, stated, “This binding agreement represents a meaningful step toward monetizing our bauxite assets with minimal capital outlay. With trusted local partners, we are confident in rapidly advancing Woula into production while we continue financing efforts for our Kangankunde rare earths asset in Malawi.”
