China’s Investment Breathes New Life into Guyana’s Century-Old Mine

Chongqing - Chongqing Bosai Minerals Group Co., Ltd., one of Chongqing's and indeed China's pioneering companies in overseas development, has significantly transformed the bauxite industry in Guyana, providing a model for successful foreign cooperation.

Investing $60 million 

Guyana, a relatively obscure South American nation to many, has become familiar with the Chinese city of Chongqing, particularly among the residents of Linden, the country's second-largest city and a crucial mining hub. A century-old bauxite mine in Linden was mired in losses for years despite multiple ownership changes, and it was on the brink of collapse.

In early 2006, Bosai Group's Chairman, Yuan Zhilun, with nearly a decade of experience in the bauxite industry, initiated plans for acquisition, promptly dispatching a team for due diligence in Guyana. By the end of the year, Bosai Group outshone over 20 global enterprises in a competitive bid, investing $60 million to establish Bosai Minerals Group (Guyana) Inc. This marked Chongqing's largest overseas investment at that time.

"We are committed to adhering to the Guyanese government's employee ratio regulations, maintaining existing workers, and enhancing their welfare while also preserving the original production systems and expanding operations," said Zhao Zongqiang, General Manager Assistant of Bosai Group, highlighting one of the key reasons behind their successful bid.

True to their word, Bosai Minerals Group (Guyana) Inc. retained over 300 local workers, raising their salaries by 13%, while deploying only about ten Chinese employees to manage operations. The company not only rebuilt the workforce but also resumed production, turning around the mine's fortunes.

Bridging cultural differences

Initially, the collaboration faced challenges due to differing work philosophies between the South Americans and the Asians. Longstanding Western media stereotypes also contributed to local skepticism about the Chinese. However, the Bosai Group emphasized cultural integration from the start.

"We were instructed to respect local customs and integrate into the local lifestyle," said Hao Rui, Guyana’s Business Department Manager of Bosai Group and one of the earliest Chinese expatriates in Guyana. Over his eight-year tenure, Hao and his team engaged in patient communication and training with local workers, fostering mutual respect and understanding.

The company's strategic moves, including developing a clear employee grading system that motivated workers to aspire for better roles and benefits, proved highly effective. By 2008, the rejuvenated mine turned profitable, significantly boosting Linden's economy and providing employment for many local residents. By the end of 2008, the company had hired over 200 new local employees.

Subsequently, Bosai Minerals Group (Guyana) Inc. became the largest bauxite mining company in Guyana, evolving into Linden's main economic pillar and tax revenue source.

Addressing decades-long dust pollution

The transformation extended beyond economic revival. From initial skepticism to eventual acceptance and warmth, the local populace's perception of the Chinese saw a complete turnaround, largely due to the Bosai Group's efforts to address longstanding environmental issues.

For nearly half a century, residents suffered from white dust pollution due to the absence of dust control equipment at the old processing plant. Recognizing that economic gains should not come at the expense of residents' well-being, the Bosai Group prioritized environmental improvements from the second year of their takeover.

The company invited Chinese environmental experts for on-site assessments and invested millions of dollars installing dust control systems. This initiative dramatically reduced dust emissions, significantly improved the quality of life for residents, and positively altered local perceptions of the Chinese.

In June 2011, with Bosai Group's facilitation, Chongqing's Nanchuan District and Linden established a sister city relationship, further cementing the bond between the two regions.

Guyanese President Irfaan Ali has repeatedly praised the Bosai Group for its substantial contributions to local economic development and supporting various Guyana sectors. He acknowledged that Chinese mining enterprises have fostered job creation, increased income, and improved local living standards.

As Bosai Minerals Group (Guyana) Inc. continues to thrive, its integration with Linden deepens, epitomizing the successful collaboration between China and Guyana.

(He Chunyang, the Chinese reporter from Chongqing Daily, also contributed to this article.)