Cameroon Alumina says finds 550 mln tonnes bauxite

YAOUNDE, Oct 16 (Reuters) - Cameroon Alumina Ltd has found 550 million tonnes of bauxite deposits at the Ngaoundal and Minim-Martap properties in the Adamawa region, a company official told Reuters. Cameroon Alumina Ltd is a joint venture set up in 2008 by Dubai Aluminium Company Ltd and India's Hindalco Industries (HALC.BO), which each have a 45 percent stake, along with U.S. firm Hydromine Inc. which holds the remaining interest. "We've found a minimum of 550 million tonnes of bauxite reserves and all indications are that there may be another 200 million tonnes at least," company co-chair Peter Briger told Reuters on Thursday after presenting an update to government officials. "The bauxite is first class quality. It is not terribly deep in the ground," he said. Briger said the company hopes to build a mining operations at the site that would produce 4.5 to 9 million tonnes of bauxite per year starting in late 2014 and an alumina refinery with a capacity of 1.4 to 3 million tonnes. "The geology and mining feasibility report is under finalization and should be ready by 31 October," said Briger. "The real challenge is the logistics problem because the mining site is 561 km from the port. The key, therefore, is to find an efficient and cost-effective way of bringing processed alumina to the port for export." Briger said the company was in negotiations with government officials over possibly upgrading and extending existing railway links from the mines to the Kribi deep sea port. General Manager Eric Lavalou said the project will cost some $5 billion to build and said the company is hoping for a mining license from government by the end of the year. "Over all, the project is progressing well, within all stakeholders expectations," said Lavalou. "If all goes well according to our plan, the bankable feasibility study should be through in 2012 and make way for construction work to begin, which will last 40 months. ...We expect the first shipment of Cameroon alumina in five years." (Reporting by Tansa Musa; Writing by Richard Valdmanis)