Rusal's CBK alumina operation unaffected by Guinean govt shake-up

United Company Rusal's bauxite and alumina operations in Guinea remain in production, despite a Guinean government statement this weekend that it was withdrawing agreements with Rusal and US oil company Hyperdynamics as part of a mining and minerals contract shake-up.

A Rusal spokeswoman said Monday that "so far there is no impact on the UC RUSAL's production in Guinea."

Rusal operates the Compagnie des Bauxites de Kindia complex in Guinea, one of the world's largest bauxite deposits. In May 2001, CBK was transferred to Rusal for a 25-year term. The complex has a design capacity of 3 million mt/year of bauxite. Over 2 million mt of bauxite are delivered to the Nikolaev alumina refinery, while over 500,000 mt are supplied to other locations, Rusal said.

"One of the appendices to the Concession Agreement on the Compagnie des Bauxites de Kindia was supposed to be reviewed by the National Assembly on April 13. The Appendix regulates payments for renting a certain portion of equipment," the spokeswoman said, adding: "The discussion was postponed as the Appendix needs to be revised. This in no way affects the overall fulfillment of the Concessions Agreement that was signed in complete accordance with Guinean legislation and has received all necessary approvals by the Parliament and the Government of Guinea."

She said that the annex to the accord was just a one of the appendices to UC Rusal's concession agreement with the Government of Guinea. "This appendix is supposed to regulate the questions of payment for a certain part of equipment. This appendix has not yet been in force and was meant to be reviewed by the National Assembly," she said, adding: "But the discussion was postponed because the Appendix needs to be revised. This situation does not influence the fulfillment of the general Concession Agreement and RUSAL's operations in Guinea remain unaffected."