UAE’s Emirates Global Aluminium (EGA) through its subsidiary Guinea Alumina Company (GAC) has signed an agreement with the Republic of Guinea to build a refinery in the country, that will refine bauxite into higher-value alumina.
This agreement, formalised through a term sheet, was signed on June 8 in Guinea.
The 2 million metric ton capacity facility will be Guinea’s second refinery and is projected to have an initial annual capacity of 1 million tonnes.
Per the term sheet,the refinery will be built in the western region of the country and is expected to be operational by September 2026.
“The alumina refinery project is expected to be built on GAC’s concession near tonnes of alumina per year. GAC is planning to work with other companies in a Tinguilinta in Boké province, with an initial production capacity of one million joint venture to progress the project,” the official statement read.
Although the project’s cost was not specified in the statement, a source who spoke to Reuters disclosed that about $4 billion would be invested in the project.
Abdulnasser Bin Kalban, EGA’s CEO, emphasized the company’s commitment to driving sustainable economic growth.
“We are now looking forward to advancing the alumina refinery project, which will further grow our contribution to the local economy and build local capability in the aluminium value chain,” he said.
Per the agreement, the government of Guinea will have a 15% stake in GAC which will later transition into a 10% share in mining operations and a 7.5% stake in GAC’s joint venture.
Youssuff Sylla, Director General of GAC, highlighted the refinery’s significance to Guinea’s economy.
“The development of an alumina refining industry is a national priority to further increase the economic benefit of Guinea’s rich natural endowment of bauxite resources. We are working closely with the Government to develop a project that is technically and commercially robust, and that can create value for Guinea and its people, and our company, for decades to come. The signing of the term sheet is an important step as it provides a framework for our negotiations for the way forward for this important project, and we now look forward to the next stage of our discussions with the Government,” he said.
Reuters posits that GAC is likely to partner with the Aluminium Corporation of China (Chinalco) in the project.
This is as a result of a recent framework agreement between Chinalco and EGA to develop an alumina refinery in Guinea
“The companies now intend to further jointly progress the project’s feasibility and joint investment,” GAC stated.
The Dubai based EGA has been operating in Guinea since 2019. In 2023, the Emirati company exported 14.1 million wet metric tonnes of bauxite from the West African country.
Guinea’s demands to multinational mining companies
Despite being Africa’s biggest producer of aluminium ore, Guinea currently operates just one alumina refinery, the Friguia refinery owned by Russian aluminium giant Rusal.
The country’s military government has been mounting pressure on corporations to construct more refineries in the country, as part of its strategy to enhance the economy through value-added processing.
For instance, in May 2022, the country’s junta led by Mamady Doumbouya asked companies to submit project proposals and a “precise timetable” for the construction of alumina refineries.
This push for local refining came after earlier demands in March 2022, when the government ordered the suspension of all activities at a massive iron ore deposit to clarify how Guinea’s interests would be preserved.
This drastic move was fueled by empty promises from top mining companies including Guinea’s top two bauxite producers Compagnie des Bauxite de Guinee (CBG) and Societe Miniere de Boke (SMB), which had initially committed to constructing refineries in the country.
“The respect of basic agreements remains a non-negotiable for us,” junta leader Doumbouya said during a hearing with company representatives broadcast on state television.
“You and I can no longer continue this fool’s game that perpetuates great inequality in our relations,” he added.
EGA’s deal with GAC, provided it bears fruit, is therefore a welcome and much-anticipated project that will enhance the country’s efforts to add value to its natural resources, ensuring economic growth and stability.
