(Ecofin Agency) - Dubai-based firm, Gajah Investment Group which has signed with the Guinean government an agreement to develop the South Boffa bauxite mine, is presently seeking an $8 billion funding for the project. The firm’s co-founder, James Tounkara, said negotiations are ongoing with potential investors for contracts to sell the mine’s output.

China should be associated to the project. Also Gajah plans to start production by the end of 2017.

“Guinea missed its chance to enter the golden age before prices of commodities crumbled. The country, now under a democracy, is ripe for development and investors should be emboldened once one or two mega projects take off,” said James Tounkara.

The South Boffa mine which holds 9 billion tons of bauxite is owned by BHP Billiton, is at the top of the top-40 biggest mining companies released by PwC in its latest report. The net value of this project was estimated at $7.95 billion based on a 25-year treasury model. The firm stopped exploration in 2012, as price of aluminum plunged.

Let’s recall that Guinea holds about a third of the world’s bauxite reserves, however exploitation of the ore, which is used to make aluminum, was hampered by years spent under military regime and by popular agitation.

Louis-Nino Kansoun