EGA signs five-year bauxite supply agreement with Xinfa

Emirates Global Aluminium has signed an agreement to supply Xinfa with bauxite from its Guinea Alumina Corporation bauxite mine for the next five years. EGA will supply the Chinese company with millions of tonnes of bauxite each year from 2020, with the first vessel scheduled to load in January.

Abdulla Kalban, Managing Director and Chief Executive Officer of EGA, said: “GAC is a new global source of high quality bauxite, responsibly produced and with cost-effective shipping using the world’s largest bulk cargo vessels. The strategy we are successfully implementing is to have a diversified customer base for GAC bauxite in major markets including China and India. We are pleased to now have Xinfa as a bauxite customer.”

The company invested some $1.4 billion to develop the GAC project, one of the largest greenfield investments in Guinea in the past 40 years. Bauxite exports from GAC began in August.

Zhang Gang, Chairman of Xinfa Group, said: “As a major imported bauxite consumer in China, Xinfa’s agreement with EGA will enhance our stable long-term bauxite supply. We are looking forward to achieving strategic win-win success through both Xinfa and EGA’s commitment.”

EGA has developed a transshipment facility in Guinea to enable its bauxite to be shipped using giant Capesize vessels, lowering shipment costs per tonne. GAC project in Guinea and Al Taweelah alumina refinery in Abu Dhabi were developed to expand EGA upstream in the aluminium value chain and internationally, EGA said.