GAC signs term sheet with Government of Guinea for development of an alumina refinery

Kamsar, Saturday, 8 June 2024 --- Guinea Alumina Corporation (GAC) has signed a term sheet with the Government of Guinea for the development of an alumina refinery. The signing of this preliminary agreement is a decisive step forward in the development of the project.

The signing was presided over by Djiba Diakité, Minister and Chief of Staff at the Office of the Presidency of the Republic and Chairman of the Strategic Monitoring Committee for the Simandou project, at the Petit Palais of the Presidency, and attended by Government officials including Bouna Sylla, Minister of Mines and Geology, and the members of the Strategic Committee.

GAC’s delegation was led by Abdulnasser Bin Kalban, Chief Executive Officer of GAC’s parent company Emirates Global Aluminium (EGA) and included Zaher Al Habtari, EGA’s Executive Vice President of Bauxite & Alumina, Saif Al Qubaisi, EGA’s and GAC’s board member, GAC CEO Steeve Tremblay, GAC’s Director General Youssuff Sylla, and GAC’s Deputy Director General René Désiré Morel.

The alumina refinery project is expected to be built on GAC’s concession near Tinguilinta in Boké province, with an initial production capacity of one million tonnes of alumina per year. GAC is planning to work with other companies in a joint venture to progress the project.

The Government of Guinea will have a shareholding in 15 per cent in GAC, to strengthen the partnership between GAC and the Government. This shareholding will convert into a 10 per cent share of the mining operation and a 7.5 per cent share of the alumina refinery company when alumina production begins. The Government will also have the right to two positions on GAC’s Board, including the Chair.

Youssuff Sylla, GAC’s Director General, said: “The development of an alumina refining industry is a national priority to further increase the economic benefit of Guinea’s rich natural endowment of bauxite resources. We are working closely with the Government to develop a project that is technically and commercially robust, and that can create value for Guinea and its people, and our company, for decades to come. The signing of the term sheet is an important step as it provides a framework for our negotiations for the way forward for this important project, and we now look forward to the next stage of our discussions with the Government.”

Last week, EGA signed a framework agreement with Aluminium Corporation of China in Beijing progressing cooperation between the two companies on the project.
The development of GAC was the largest greenfield mining investment in Guinea in four decades. The company began production in 2019.

GAC employs some 3,200 people on its sites in Boké province as employees and contractors. In 2023, GAC spent some $283 million in Guinea in local procurement, payments to governments and social contributions.