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[November 2004]
Alcoa and Republic of Guinea Sign Protocol on Alumina Plant
Alcoa (Pittsburgh, PA, USA) announced on 24 November 2004 that its Alcoa
World Alumina affiliate Alcan Inc and the Government of the Republic of
Guinea had signed a protocol for developing jointly a 1.5 metric ton per
year (mtpy) alumina refinery in Guinea, West Africa. The protocol sets out
the items and framework for the alumina refinery project that will be
negotiated over the next few months as part of the memorandum of
understanding signed by Alcoa World Alumina and Alcan in May. A detailed
feasibility study for the refinery is expected to be completed by mid-2005,
with construction to begin shortly thereafter.Alcoa World Alumina & Chemicals (AWAC) and Alcan, through subsidiaries, each
hold a 45% 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. Alcoa and Alcan intend to secure
bauxite supplies to the refinery from CBG, adding values to the enormous
reserves that it holds in the Boke region. AWAC, Alcan and other Halco
shareholders acquire CBG bauxite for use in their individual businesses.Following the completion of the feasibility study, alumina production could
be expected by 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 off-take independently. The refinery would incorporate
the latest technology and world-class operating and management systems.
ENDS