THE AFRICA REPORT
Guinea: Mining projects
Edited by : AL CIRCLE
2 min read
The new Guinean government is set to transform the country's investment climate as it shakes up the civil service and the military, and brings in international advisors to develop radical new development plans.
In the immediate future, Guinea's return to growth and export income will be driven by mining investments, with ever more companies and investors looking at a long-isolated country that holds two-thirds of the world's bauxite reserves.
Guinea could be poised to emerge as the next big sub-Saharan investment opportunity, if President Alpha Condé's government can succeed in quickly repositioning it as a country that is emerging from conflict to become a significant recipient of foreign investment and donor support.
This process will be helped by agreements with the IMF and sovereign creditors in the Paris Club, which are expected to be finalised in coming months.With these structures in place, Guinea will be able toraise more funds to support what the government forecasts could be a $20bn-25bn investment spend in the next five years.
Investment is essential because demand is set to rise sharply as mining investment and wider economic growth pick up.In regard to power,Energy ministry projections show mining sector demand alone rising from some 80MW in 2010 to more than 500MW by 2015 and 600MW by 2020, when domestic demand is projected to reach 1,100MW.
Another huge mining project that is starting up involves Global Alumina International in a joint venture with BHP Billiton, Dubai Aluminium Company and Abu Dhabi's Mubadala Development Corporation, building the world's largest alumina plant at Sangarédi. With other alumina plants planned for Kamsar (Alcoa, Rio Tinto and Alcan) and Dian-Dian (Rusal), and another big iron ore scheme at Kalia, the pace of mining investment is such that huge infrastructure investments must keep pace.
With mining giants and their investors allocating funds to make this happen, the Guinean economy could benefit from momentum at a level not seen for decades.
In the immediate future, Guinea's return to growth and export income will be driven by mining investments, with ever more companies and investors looking at a long-isolated country that holds two-thirds of the world's bauxite reserves.
Guinea could be poised to emerge as the next big sub-Saharan investment opportunity, if President Alpha Condé's government can succeed in quickly repositioning it as a country that is emerging from conflict to become a significant recipient of foreign investment and donor support.
This process will be helped by agreements with the IMF and sovereign creditors in the Paris Club, which are expected to be finalised in coming months.With these structures in place, Guinea will be able toraise more funds to support what the government forecasts could be a $20bn-25bn investment spend in the next five years.
Investment is essential because demand is set to rise sharply as mining investment and wider economic growth pick up.In regard to power,Energy ministry projections show mining sector demand alone rising from some 80MW in 2010 to more than 500MW by 2015 and 600MW by 2020, when domestic demand is projected to reach 1,100MW.
Another huge mining project that is starting up involves Global Alumina International in a joint venture with BHP Billiton, Dubai Aluminium Company and Abu Dhabi's Mubadala Development Corporation, building the world's largest alumina plant at Sangarédi. With other alumina plants planned for Kamsar (Alcoa, Rio Tinto and Alcan) and Dian-Dian (Rusal), and another big iron ore scheme at Kalia, the pace of mining investment is such that huge infrastructure investments must keep pace.
With mining giants and their investors allocating funds to make this happen, the Guinean economy could benefit from momentum at a level not seen for decades.
Previous article
Alcoa and Saudi co. get funding for joint venture
Next articleBauxite Reserve of Henan Zhengzhou Reaches 0.26billion tons
Grow with
AL Circle
