Privately owned Bosai Minerals Group bid US$60 million to win an auction for bauxite mines in Guyana in South America, joining larger state-owned rivals in pushing past mainland borders to secure natural resources. The acquisition of Omai Bauxite Mining from Canadian gold producer Cambior could make the Chongqing-based Bosai, which beat more than 20 other bidders in the auction, the world's largest calcined bauxite producer, from second-largest. Omai, which is 70 per cent owned by Cambior and 30 per cent by the government of Guyana, has several bauxite deposits in the Linden region of the country and has proven reserves of 186 million tonnes or about 30 per cent of China's proved reserves. It is capable of producing up to 400,000 tonnes of calcined bauxite a year, according to a statement posted on Bosai's website. Calcined bauxite is the base material for making refractory materials and aluminium. Analysts said Bosai's acquisition of Omai was in line with Beijing's policy of establishing strategic metal reserves. In a document issued by the Ministry of Land and Resources in April last year, Beijing said it would push phased development of crude oil and other key mining reserves, including uranium, coal, iron, copper, aluminium, manganese, chromium, rare earth and tungsten which would be funded by the government and the private sector. State-owned Aluminum Corp of China (Chalco), the world's second-largest alumina producer, won the bidding for a A$3 billion bauxite mining and refining project in Aurukun, Australia in September last year. Chalco has also signed a framework agreement to invest in a US$1.6 billion bauxite mining and alumina refining project in Vietnam with a local partner. Bosai, one of the top five privately owned enterprises in Chongqing, has 50 million tonnes of proven bauxite reserves with an annual production capacity of 200,000 tonnes of calcined bauxite. It takes 2.8 tonnes of raw bauxite to produce one tonne of calcined bauxite. The company has assets of 1.8 billion yuan and generated turnover of US$200 million in 2005. It aims to boost its turnover to US$600 million in 2008, according to the company's website.