Chalco plans big investment in Guinea bauxite project

The mines minister of Guinea revealed that China’s Aluminium Corp of China (Chalco) has formed an intention to invest huge amount of money in bauxite project in Guinea. Chalco will spend $500 million for production of bauxite in the country from 2018, according to a report from Reuters.

The company will exploit the reserves of bauxite abandoned by BHP Billiton. Saadou Nimaga, secretary general of the mines ministry, said, "The reserves of bauxite abandoned by BHP Billiton will eventually be exploited from 2018 by Chalco.”

The company will develop bauxite project in the Boffa area, about 200 km from the capital Conakry. The investment will go towards the first of three project phases, which will also include the production of aluminium.

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The deal comes after Guinea's Mines Minister Abdoulaye Magassouba visited China and follows other major Chinese investments in West African nation.

Guinea aims to increase bauxite production to 60 million tonnes by 2020. The country is planning to invest aggressively to meet strong demand for bauxite from China.