ASX-listed TerraCom is continuing its acquisition spree in Africa, with the company signing a binding term sheet for the acquisition of bauxite developer Anglo African Minerals (AAM).
AAM’s bauxite resources are located in the Republic of Guinea, consisting of three development projects, including the 70-million tonne Forward African Resource (FAR) project, the 450-million tonne Societe Miniere d’Alumine (Somalu) project, and the 865-million Tougue Bauxite and Alumina Corporations (Toubal) project. TerraCom told shareholders on Monday that the company’s initial focus would be on the development of the FAR project, which is situated in close proximity to existing rail infrastructure, allowing for the completion of an export supply chain. The project is expected to be in production at an initial rate of three-million tonnes a year, between 13 and 16 months from the start of development activities, increasing to five-million tonnes a year over the subsequent 12 months.