Mining giant UC Rusal has launched a new bauxite project in the West African state of Guinea.

A report from the Reuters news agency says Rusal’s decision to start the project, comes amid continuing talks between the company and its creditors over debt restructuring.

Last week, Mining Minister Phillip Paulwell announced that the Jamaican Government would revoke the license of the Russian- based company, if it failed to restart mining operations at the Alpart and Kirkvine plants within six months.

Opposition Spokesman on Mining, Karl Samuda says Rusal’s investment in Guinea raises serious concerns about the company’s interest in Jamaica.

For months, the Government has been engaged in negotiations with UC Rusal over the resumption of operations at the Alpart and Kirkvine facilities, which closed in 2009.

This is Minister Paulwell speaking in the House of Representatives on July 8.

On Sunday it was announced that the mining giant was undertaking a new project at the Dian-Dian plant in Guinea, despite being given an ultimatum by the Jamaican government.

The move, Rusal says, forms part of its debt restructuring efforts.

This as its net debt stood at 10-point-3-billion US dollars at the end of March.

Dian Dian has the world’s largest bauxite deposit, with reserves of 5-hundred-and-64 million tonnes.

The first stage of the Dian Dian project is expected to be completed by 2016.

It will see the commissioning of a bauxite mine with an annual capacity of 3 million tonnes with the potential for an additional 3-million tonnes.

The total investment for the first stage of the project will be more than 2-hundred-and-20 million US dollars.

A significant portion of this outlay has been reserved for infrastructure development in Guinea, specifically railway and port development.

Opposition Spokesman on Mining, Karl Samuda says the Jamaican government must have a contingency plan in place if Rusal does not take up its offer to resume operations locally.

American multinational financial services firm Morgan Stanley says with capital spending of 73-million US dollars per year over three years, Rusal will be able to finance the new plant internally.

It will also be able to increase its bauxite self sufficiency to 93 from 74-percent in 2013.