US govt invests in Guyana’s bauxite sector to eliminate reliance on bauxite from China

Last Updated on Saturday, 8 August 2026, 13:30 by Denis Chabrol

Three months after the United States (US) government publicly expressed an interest in tapping Guyana’s bauxite reserves, that country’s Department of War (DOW) said it is investing US$85.5 million to help acquire a mine in the South American country to guarantee supplies instead of turning to China.

The DOW’s Economic Defense Unit said that funding from the Industrial Base Analysis and Sustainment (IBAS) programme would be complemented by an additional US$64.5 million co-investment from the private sector.

“These funds will be used to acquire and expand the First Bauxite (FBX) mine in Guyana, develop new calcination facilities for primary processing, and contribute to a follow-on project to construct a brown-fused alumina (BFA) facility in the United States,” the Department of War said Friday in a statement. Last month, FIRST Bauxite said it had entered into an agreement under which Strategic Bauxite has acquired the Company.

The DOW explained that this initiative addresses an over-dependence on imports for refractory-grade bauxite for the U.S. supply chain, with the vast majority sourced directly from China or Chinese-owned entities. Once fully operational, this project is expected to meet 100% of U.S. military demand for BFA and 100% of U.S. demand for refractory bauxite. IBAS equity and direct investments are strategically targeted at critical supply chain bottlenecks, particularly where private venture capital has historically been hesitant to invest due to long developmental timelines, the DOW said.

“The Department of War is no longer waiting for supply chain dependencies to be exploited,” said George K. Kollitides II, Director of the Economic Defense Unit. “This agreement shows how EDU and the Department can partner with the commercial sector to rapidly turn opportunities into advantages for the warfighter.”

The Department of War, in partnership with the Office of the Assistant Secretary of War for Industrial Base Policy, in announcing the equity investment, said that strategic partnership would establish a secure, vertically-integrated U.S. supply chain for refractory-grade bauxite, a critical material for national defense and key industrial base sectors.

“Our defense readiness relies on secure, regional access to critical minerals,” said  Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy. “This partnership with Strategic Bauxite through the equity funding and analysis provided by the IBAS program ensures that critical materials in the western hemisphere stay in supply chains that protect the United States and its allies.”

Refractory-grade bauxite is necessary for manufacturing high-temperature-resistant materials used to make critical components for US warfighters such as heat shields, thermal barriers, and turbine engines in guided missiles, rockets, military aircraft, and space systems. Beyond defense, this high-purity bauxite is a vital raw material for steel and aluminum production, energy infrastructure, and industrial furnaces, making it a cornerstone of a modern, industrial economy.

This agreement also serves as an example of how the Department is coordinating across the interagency to support national security requirements. As part of the broader effort, the Department of State provided 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.

Under Secretary of State for Economic Affairs Jacob Helberg in May, 2026 had visited Guyana and expressed an interest in the country’s bauxite reserves. “We did talk about things that were prospective, but obviously because the reserves of bauxite are known and there are already investments today, we talked a fair amount about those,” he said.

The Chinese bauxite company, BOSAI Minerals, and the American-owned First Bauxite are producing bauxite in Guyana, and RUSAL is expected to resume operations here later this year after walking away in 2018 at the height of a labour dispute.

The US Under Secretary had said the US was keen on expanding Guyana’s economic activities in the bauxite sector with additional private investment. Michael Smith, General Partner of Strategic Bauxite, stated: “We are delighted to invest in First Bauxite and look forward to working with its employees, management team, customers, communities, and government partners. We believe the Company has significant growth opportunities and we are committed to supporting its continued success.”