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.