Steel Guru
Guinea in contact with Mubadala on CBG stake
Edited by : AL CIRCLE
2 min read
Reuters reported that Guinea has opened contacts with United Arab Emirates investment fund Mubadala over a possible stake in its CBG bauxite JV with Alcoa and Rio Tinto.
Mr Mohamed Lamine Fofana mines minister of Guinea said that Guinea, the world's largest exporter of the raw material of aluminium had not opened full negotiations at this point.
He said that the Emiratis told us they have a production project for 10 million tonnes of alumina for which they need a large quantity of bauxite. That's why they are interested in CBG. Guinea was looking for USD 300 million for a planned expansion of the CBG mine.
The Guinean government has 49% stake in CBG. Mr Fofana declined to say what size of stake could be made available to Mubadala but a ministry source said it could be around 23 percent. The plan is to start with a draft that must be studied and approved by the government and if the view is positive we will make contact with the privatization agency. President Mr Alpha Conde would need to pass any deal by decree.
The ministry source said that current plans already aimed to raise CBG's output to 16.5 million tonnes of bauxite a year from 13 million but with Mubadala we can go up to 18 million.
Mr Mohamed Lamine Fofana mines minister of Guinea said that Guinea, the world's largest exporter of the raw material of aluminium had not opened full negotiations at this point.
He said that the Emiratis told us they have a production project for 10 million tonnes of alumina for which they need a large quantity of bauxite. That's why they are interested in CBG. Guinea was looking for USD 300 million for a planned expansion of the CBG mine.
The Guinean government has 49% stake in CBG. Mr Fofana declined to say what size of stake could be made available to Mubadala but a ministry source said it could be around 23 percent. The plan is to start with a draft that must be studied and approved by the government and if the view is positive we will make contact with the privatization agency. President Mr Alpha Conde would need to pass any deal by decree.
The ministry source said that current plans already aimed to raise CBG's output to 16.5 million tonnes of bauxite a year from 13 million but with Mubadala we can go up to 18 million.
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