DUBAL takes control of refinery in Guinea

Dubai Aluminium Company (DUBAL) has formed a joint venture to develop and operate the Sangaredi Refinery Project in the Republic of Guinea.

The new venture is called Guinea Alumina Corporation (GAC).

The other partners are Broken Hill Proprietary Company (BHP Bilton), Global Alumina International (GAI) and Mubadala Development Company.

The initial cost of the refinery will be US $3 billion, although a further $2 billion will be needed to fund the full construction.

The refinery will have the capacity to produce three million tonnes of alumina a year.

The development will also include a nine million tonne-a-year bauxite mine and associated infrastructure.

"A vast majority of the alumina outtake has already been accounted for," said Bruce Wrobel, co-chairman and CEO, GAI.

"Each partner has bought a substantial share of the initial three million tonnes."

DUBAL's investment in GAC will be by way of share subscriptions resulting in a 25% stake.

The company will also enter into a long-term purchase and sale agreement for alumina produced at the refinery.

"The Guinea project is a key element of DUBAL's growth strategy and its vision to be among the top five aluminium producers in the world by 2015," said Abdulla Kalban, CEO, DUBAL.

Guinea is known to have around a third of the world's bauxite reserves.