Guinea approves Emirates Global's aluminium project
Abu Dhabi, June 25, 2014
Guinea's parliament has approved amendments in a deal with Emirates Global Aluminium which will see the start of bauxite production in 2017 and the construction of a 2-million-tonne-per-year alumina refinery from 2018.
"The National Assembly unanimously adopted the amendment of Global Alumina project," Saadou Nimaga, legal counsel of Guinea's mines ministry told Reuters late on Tuesday.
The adoption of the amendments clears the path for the project after the West African nation and Abu Dhabi state-owned investment fund Mubadala signed a $5 billion agreement in November to develop a bauxite mine and an alumina refinery in minerals-rich Guinea.
The project was previously owned by a consortium that included Dubai Aluminium (Dubal), Mubadala, BHP Billiton and Global Alumina and had planned to build a 2.8 million tonnes refinery. The project was delayed after failing to raise funds following the financial crisis.
EGA was formed by integrating the businesses of Dubal and Emirates Aluminium. It is owned by Abu Dhabi's Mubadala Development Company and the Investment Corporation of Dubai.
Guinea Alumina Corporation (GAC), which will deliver the project, is a wholly-owned subsidiary of EGA.
It is set to become the world's fifth largest aluminium company by output this year and the Guinea project will enable it secure raw material for United Arab Emirates' aluminium plants.
Guinea is the world's top supplier of bauxite, the raw material used in aluminium production. Alumina is partially refined bauxite.
Under the agreement bauxite will be ready for export by 2017 and the refinery will be operational by 2022.-Reuters