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[May 2004]
Alumina Feasibility Study for Plant in Guinea
Alcoa World Alumina LLC (Pittsburgh, PA, USA) and Alcan Inc (Montreal, Canada) announced on 13 May 2004 they had signed a Memorandum of Understanding to assess the feasibility of developing jointly a 1.5 metric tonne per year alumina refinery in the Republic of Guinea in West Africa.
Through subsidiaries, each company holds a 43% interest in Halco (Mining) Inc, which in turn is a 51% owner of Compagnie des Bauxites de Guinee (CBG) that currently mines bauxite for export in the Boke region of the country. The Government of the Republic of Guinea holds the remaining 49% of CBG. CBG has exclusive rights through until 2038 to bauxite reserves and resources in a 10,000 square mile area in the northwestern part of the country.
Alcoa and Alcan will immediately undertake a detailed feasibility study, furthering a feasibility assessment previously carried out by Alcoa, to assess the various aspects of the project. This study is expected to be completed by mid-2005 and alumina production could be expected by early 2008.
The refinery, which would be operated by Alcoa, would be expected to have an initial 1.5 million mtpy capacity and it would be capable of expansion beyond this level. Alcoa and Alcan would market their respective alumina take-off independently. The refinery would incorporate the latest technology and world-class operating and management systems.
The companies will work closely with the Government of the Republic of Guinea on the roles and participation of CBG and the Government in this new project. Alcoa and Alcan have had informal discussions with the International Finance Corporation (IFC) concerning a possible investment in the project.
Given the substantial quantity and the high quality of bauxite reserves, the companies believe Guinea represents an attractive location for an alumina refinery.
ENDS