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12 JUNE 2018 AL CIRCLE

Chalco targets Boffa bauxite project in Guinea by end-2019

EDITED BY : DEBANJALI SENGUPTA 1MINS READ

According to the report by Reuters, Aluminium Corp of China (Chalco) has signed an agreement with Guinea government, on June 8 in Conakry, to develop the Boffa bauxite project in the west of the country.

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According to the agreement signed, Chalco Guinea Company would be granted mining licenses for the Boffa North and Boffa South Blocks for 15 years and would be open to renewal for next 15 years on expiry. Chalco must transfer 15 per cent of shares in Chalco Guinea Company to the Guinea government with 10 business days, while Guinea has option to increase interest up to 35 per cent.

The project holds around 1.75 billion tonnes of bauxite, with an estimated annual production of 12 million tonnes, which is expected to start by the end of 2019. The output will go to Chalco alumina refineries in Shandong and Guangxi.

Last month, Chalco had declared that it would invest up to US$ 163.8 million in the project, which has a total cost of US$706 million. The investment would be split among mining, ports and lightering operations.


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EDITED BY : DEBANJALI SENGUPTA 1MINS READ

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