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05 JULY 2018 AL CIRCLE

EGA signs contract with Vedanta to supply bauxite from its mine in Guinea

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

UAE-based Emirates Global Aluminium (EGA), jointly owned by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai, has signed a deal with Vedanta to supply bauxite from its mine in Guinea.

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Under the long-term agreement, EGA will start providing the ore to Vedanta from the second half of 2019, soon after its wholly-owned subsidiary Guinea Alumina Corporation (GAC) will finish building a bauxite mine and associated export facilities in Guinea.

By investing around US$1.4 billion in the bauxite mining project, GAC is expecting to produce some 12 million tonnes of bauxite every year.

In the year 2017, EGA had supplied three sample shipments of bauxite, which were of around 15000 tonnes in total, to Vedanta for testing purpose.

According to the current agreement signed, EGA will ship bauxite from Guinea using Capesize vessels, amongst the largest bulk cargo ships in the world.

Abdulla Kalban, managing director and CEO of EGA said: “When GAC starts production it will be a new source of high quality bauxite for the world’s aluminium industry, benefiting the economies of Guinea, the UAE and countries like India.”

“This agreement with Vedanta is an important milestone in the development of this project,” he said further.

EGA is also building an alumina refinery in Abu Dhabi to refine bauxite ore into alumina which is the feedstock of aluminium smelters.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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