BHP Billiton has acquired a 33.3% interest in Global Alumina's Sangaredi Refinery Project in Guinea, West Africa, for a consideration of $140 million, the mining major said in a statement Friday.
BHP said the project comprised the design, construction and operation of a 3 million mt/year alumina refinery, 9 million mt/year bauxite mine, and associated infrastructure. A mining concession covering 690 square kilometres has been secured and a mineral resource of 233 million mt bauxite, at 39% available alumina and 1% reactive silica, has been reported. This is considered sufficient to support the development, but further exploration work is underway to increase the resource size, the group said.
Global Alumina will now hold a 33.3% equity interest in the Sangaredi Refinery Project, Dubai Aluminium Company Limited a 25% interest, and Mubadala Development Company PJSC 8.3%, BHP noted in the statement.
It said the proposed refinery site was about 100 km inland from Kamsar and had the benefit of access to existing rail infrastructure linking it to the Port of Kamsar, where dedicated facilities are already under construction.
"This project provides the Joint Venture partners with access to a long life, low cost, world class resource base and represents an excellent opportunity for BHP Billiton to continue to grow its business in a value accretive manner," said Graeme Hunt, president of aluminium for BHP Billiton.
"In view of BHP Billiton's other exploration interests in Guinea, this project also offers us valuable experience of operating in this first tier minerals province," he added.
As part of the agreement, BHP Billiton will appoint the CEO and CFO of the joint venture company and will enter into a services agreement with the JVC for the development, construction and operation of the project, which will be operated in accordance with BHP Billiton standards.
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