Guinea’s ambitions to move beyond raw mineral exports received a major boost after Aluminum Corp of China (Chalco), China’s largest state-owned aluminum producer, agreed to invest $1 billion in a new alumina refinery in the West African country.
The Beijing-based company said it will establish a new entity to develop a 1.2 million-ton-per-year alumina plant in Guinea, deepening China’s growing footprint in Africa’s bauxite-rich economies.
Under the agreement, the Guinean government will receive a 5% stake at little or no cost and retain the option to raise its holding to as much as 35% at market value.
The project marks Chalco’s first alumina refinery outside China and builds on more than a decade of operations at the company’s Boffa bauxite mine in Guinea. The investment still requires approval from shareholders and Guinean authorities.
Africa pushes for downstream mineral processing
