By Ed Attwood
Purchase of Sangaredi Refinery Project secures long-term raw material for smelters in UAE
Dubai Aluminium (Dubal) and Abu Dhabi investment fund Mubadala have confirmed the full acquisition of Guinea Alumina Corporation (GAC), in a move that secures raw material for the UAE’s smelters from a country that is home to the world’s largest proven bauxite reserves.
The two companies bought the remaining stake in GAC that they didn’t already own from former joint venture partners BHP Billiton and Global Alumina Company.
The financial details of the deal, which was announced in May, were not disclosed.
GAC holds a 50-year renewable mining concession at the Global Alumina Sangaredi Refinery Project. The joint venture is developing a bauxite mine, and a 3.6 million tonne per year refinery.
The joint venture has already spent roughly US$740m on building associated infrastructure at the site, including a port, container quay, refinery earthworks, bridge and access road.
Mubadala bought an 8.33 percent stake in GAC in 2007, with Dubal (25 percent), BHP Billiton (33.33 percent) and Global Alumina Corporation (33.33 percent) holding the rest of the joint venture.
In June, the UAE merged its two state-owned aluminium producers in a $15bn deal that created the world’s fifth-largest aluminium producer.
Emirates Global Aluminium (EGA), formed from the merger of Dubal and Emirates Aluminium (Emal), is jointly owned by the Investment Corporation of Dubai (ICD) and Mubadala.
Earlier this year, the Guinean government announced that it would triple bauxite production capacity to 61 million tonnes by 2020 to meet Chinese demand for aluminium.