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US. Govt. to acquire bauxite mine in Guyana
…says move is to curtail Chinese dominance in country
(Kaieteur News) – The United States (U.S.) Department of War has struck an US$85.5M equity investment deal to acquire and expand a bauxite mine in Guyana, part of a broader effort by Washington to break China’s grip on critical mineral supply chains — a move the Guyanese government is yet to publicly address.
The agreement, announced by the Department’s Economic Defense Unit (EDU) alongside the Office of the Assistant Secretary of War for Industrial Base Policy, channels funding through the Industrial Base Analysis and Sustainment (IBAS) program. Combined with US$64.5M in private co-investment, it forms a US$150M package aimed at acquiring and expanding the First Bauxite (FBX) mine, building new calcination facilities in Guyana, and eventually constructing a brown-fused alumina plant in the United States.
U.S. officials described the deal as a direct response to American reliance on Chinese-controlled sources for refractory-grade bauxite, a material used in high-temperature components such as heat shields, turbine engines and missile parts. Once fully operational, the project is expected to meet all U.S. military demand for brown-fused alumina and all domestic demand for refractory bauxite.
George K. Kollitides II, Director of the Economic Defense Unit, said the Department is no longer waiting for supply chain dependencies to be exploited, framing the investment as a way to convert emerging opportunities into advantages for U.S. forces.
“This agreement shows how EDU and the Department can partner with the commercial sector to rapidly turn opportunities into advantages for the warfighter,” Kollitides II.
Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy, added that defense readiness depends on secure, regional access to critical minerals, and said the arrangement is meant to keep Western Hemisphere resources inside supply chains that serve the U.S. and its allies. To ensure the transaction moves swiftly, the U.S. Department of State also stepped in to provide “critical funding to support infrastructure associated with the project, enabling the U.S. government to act quickly and reinforce the long-term viability of the supply chain.”
Refractory-grade bauxite serves as a vital component in modern defense systems, required to build “high-temperature-resistant materials used to make critical components for our warfighters such as heat shields, thermal barriers, and turbine engines in guided missiles, rockets, military aircraft, and space systems”.
Beyond weapon manufacturing, the high-purity ore is considered a “vital raw material for steel and aluminum production, energy infrastructure, and industrial furnaces, making it a cornerstone of a modern, industrial economy”. To ensure the transaction moves swiftly, the U.S. Department of State also stepped in to provide “critical funding to support infrastructure associated with the project, enabling the U.S. government to act quickly and reinforce the long-term viability of the supply chain”.
The bauxite deal is the latest step in a wider American push into Guyana’s mineral and energy sector. U.S. Under Secretary for Economic Affairs Jacob Helberg met with Guyanese officials, including President Irfaan Ali, in May 2026 as Washington moved to deepen ties with Guyana. At the time, Guyana’s Foreign Secretary Robert Persaud told the Associated Press that Guyana wanted to attract U.S. investment but was seeking more value-added processing rather than raw mineral exports.
Guyana’s bauxite sector already draws interest from other major powers. Chinese-owned BOSAI Minerals holds a substantial existing footprint in the industry.
Despite the scale of the deal and its explicit framing as a counter to Chinese influence in the country, the government of Guyana has not issued any public statement or response. This newspaper’s attempts to reach Minister of Natural Resources Vickram Bharrat for a comment were unsuccessful.
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