Guinea signs agreement for major alumina refinery by 2026

GUINEA has signed a non-binding agreement with a subsidiary of Emirates Global Aluminium (EGA) for the construction of a major alumina refinery, according to two senior officials from Guinea’s mines ministry. The agreement, known as a ‘Term Sheet,’ outlines plans for the Guinea Alumina Corporation (GAC) to build the refinery with a 2 million metric ton capacity by September 2026 in the western region of the country. Initial production is expected to reach 1.2 million tonnes annually.

Guinea, Africa’s largest producer of aluminum ore, has been striving to leverage its mineral wealth for economic development and has been urging companies to establish local facilities to refine bauxite into higher-value alumina. The project is expected to attract around $4bn in investment, according to a Reuters report.

Additionally, GAC will collaborate with Aluminium Corporation of China (Chinalco) on the project. A source at GAC confirmed the deal, stating that the company signed a framework agreement with Chinalco on June 3 to progress their cooperation on developing the alumina refinery. ‘The companies now intend to further jointly progress the project’s feasibility and joint investment,’ said the statement on GAC’s website.

Emirates Global Aluminium, which began operations in Guinea in 2019, did not immediately respond to requests for comment. The Emirati company exported approximately 14 million metric tons of bauxite from Guinea in 2022.

Currently, Guinea has one operational alumina refinery, the Friguia refinery, owned by Russian aluminum giant Rusal. Since seizing power in a 2021 coup, Guinea’s military junta under Mamady Doumbouya has been pushing companies in the mining sector to invest further in the value chain by building refineries.

The new refinery project is expected to significantly boost Guinea’s capacity to process its bauxite locally, thereby enhancing the nation’s economic development efforts and increasing the value derived from its mineral resources.