BHP Billiton Buys One-Third Stake in Guinea Bauxite Project

BHP Billiton in late April announced the acquisition of a 33.3% interest in Global Alumina’s Sangaredi refinery project in Guinea, West Africa, for $140 million. The project comprises the design, construction and operation of a 3-millionmt/ y alumina refinery, 9-million-mt/y bauxite mine, and associated infrastructure. A mining concession covering 690 km2 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 proposed refinery site is approximately 100 km inland from Kamsar and has the benefit of access to existing rail infrastructure linking it to the Port of Kamsar, where dedicated facilities are already under construction.

As part of the agreement, BHP Billiton will appoint the chief executive officer and chief financial officer of the Joint Venture Company (JVC) 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.

Global Alumina will now hold a 33.3% equity interest in the Sangaredi project, Dubai Aluminium Company Limited a 25% interest and Mubadala Development Company PJSC 8.3%.