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Project will secure high-quality bauxite supply for EGA, generate new revenue through exports
United Arab Emirates: Emirates Global Aluminium ("EGA") will begin construction on a major bauxite mine in the Republic of Guinea, to secure supply of the high-quality raw material for its primary aluminium production facilities in the United Arab Emirates ("UAE") and create a new, substantial revenue stream through significant exports to Asia.
EGA announced it has received final approval from its Board of Directors to launch the first phase of the mine, to be managed through its subsidiary, Guinea Alumina Corporation ("GAC"). The project will develop an initial 12 million tonnes per annum (Mtpa) bauxite mine in the Republic of Guinea, where the company holds a concession on more than 1 billion tonnes of bauxite. The project will also include the construction of a dedicated export terminal at Port Kamsar and upgrades to existing rail infrastructure for in-land logistics. Guinea holds the world's largest and highest quality reserves of bauxite, the raw material used in the production of aluminium.
The mine is scheduled to begin production in 2018, with plans to export bauxite via Port Kamsar to the Middle East and Pacific markets. The development of this bauxite mine builds on EGA's strategy to integrate its current smelting operations with world-class upstream assets, thus reducing its dependency on third-party suppliers for critical raw materials. EGA is also currently constructing the UAE's first alumina refinery, on a site adjacent to its Al Taweelah Operations' aluminium smelter in the Khalifa Industrial Zone Abu Dhabi ("KIZAD"). The 2 Mtpa alumina refinery will reduce EGA's dependency on alumina imports by more than 40 per cent.
Abdulla Kalban (Managing Director & Chief Executive Officer of EGA) said, "This investment builds on our plan to secure EGA's supply chain and capitalize on growth in the third party bauxite market. Despite the prevailing challenges facing the aluminium industry, we remain confident in the long-term outlook for the sector, and believe it is the right time for us to invest in high-quality, cost-competitive assets. We have built a strong presence in-country with the support of the government and people of Guinea, and we will continue our work to support local communities there - including training of more than 200 Guineans in the UAE for deployment to key roles in our business."
The mine development project is estimated to create approximately 4,000 direct and indirect jobs in the Boké region, increase Guinea's GDP by more than 10 per cent annually, and solidify Guinea's position as the world's largest exporter of bauxite, thus providing a significant uplift to the country's foreign earnings. Global demand for high-quality bauxite, particularly in China, is expected to grow significantly over the next decade.
EGA has plans for further investments in Guinea upon the successful completion of the bauxite export mine, including the development of an alumina refinery. EGA prides itself in the development of projects to exacting global standards of community and environmental responsibility, with substantial investments made to date and to be further developed through the life of the project. EGA's areas of focus include community health centres (5 delivered to date), provision of clean water (26 wells delivered to date), primary and secondary education (schools for more than 5,500 children constructed), vocational training (approximately 500 trained to date) and SME development (thousands of adult literacy beneficiaries and financial assistance for SMEs), as well as investments in protection of habitats for rare and endangered flora and fauna.
EGA is one of the world's leading aluminium companies with interests in bauxite/alumina and primary aluminium smelting; with plans for significant local growth and international expansion. The company's two operating sites in Abu Dhabi and Dubai (UAE) currently produce 2.4 Mtpa of primary aluminium.
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About EGA
Emirates Global Aluminium ("EGA") is a jointly-held, equal-ownership company formed by Mubadala Development Company of Abu Dhabi and the Investment Corporation of Dubai by combining their respective aluminium industry interests. EGA's core operating assets are Dubai Aluminium ("DUBAL", also known as Jebel Ali Operations) and Emirates Aluminium ("EMAL", also known as Al Taweelah Operations), whose combined production capacity of 2.4 million tonnes per annum ("tpa") places EGA among the top five primary aluminium producers in the world, by volume. The UAE-based EGA also owns Guinea Alumina Corporation ("GAC"), a strategic bauxite mine and alumina refinery development project in West Africa; and is currently developing an alumina refinery in the UAE. In addition, EGA has plans for significant local growth and international expansion.
Jebel Ali Operations, where commissioning began in 1979, operates one of the world's largest single-site primary aluminium smelters. The Jebel Ali Operations complex, built on a 4.75 square kilometre site in Jebel Ali, Dubai, comprises a 1.05 million tpa smelter, a 2,350 MW power station, a large carbon plant, extensive casting operations (more than 1.2 million tpa), a water desalination plant, dock and other facilities.
Al Taweelah Operations, where commissioning began at the end of 2009, is the world's largest single-site primary aluminium smelter. The Al Taweelah Operations complex, housed on a 6 square kilometre site in Al Taweelah, Abu Dhabi, comprises a 1.38 million tpa smelter, a 3,100 MW power station, a large carbon plant, extensive casting operations (more than 1.8 million tpa), a water desalination plant, dock and other facilities.
The EGA portfolio comprises high quality primary aluminium products in three main categories: high purity and foundry re-melt products (for electronics and aerospace and automotive applications respectively); rolled products (for packaging, lithographic sheets and the automotive industry); and billets for extrusion and forging (for construction, industrial, transportation and automotive purposes). Busbars and anode bars are also made for the electrolytic process used to produce primary aluminium from alumina ore. Over 300 customers are served in at least 60 countries, predominantly in Asia, Europe, the MENA region and the Americas.
© Press Release 2016
