 |
 |
||||||
[January 2006]
Agreement Reached on Bauxite Rights and Supply in Guinea
Halco (Mining) Inc has announced that a definitive three-party agreement has been reached between the Government of the Republic of Guinea, Global Alumina and Bauxites de Guinee (CBG) regarding the bauxite rights and supply in accordance with the Basic Agreement of CBG, enabling growth in the alumina refining industry in Guinea. An agreement in principle on this topic had been reached in October 2005 by representatives of the Government and CBG.
Halco owns 51% of CBG, which mines bauxite in the Boke region of the country. The Government is Halco's partner in CBG. Alcan Inc (45%), Alcoa World Alumina LLC (45%) and Dadco Investments(10%) are the shareholders of Halco. CBG has exclusive rights through to 2038 to bauxite reserves in north-western Guinea.
"We greatly value the mutually beneficial relationship that we have shared with the Republic of Guinea for more than 40 years," said Halco Chairman Jean-Philippe Puig, "and we strongly support the development of alumina refineries and other industrial projects within the country. This agreement satisfies the legitimate needs of all concerned parties."
With the Agreement, CBG has access to sufficient bauxite resources to satisfy the needs of its current and future customers, both for export and for the supply of local refineries.
ENDS