IFC announces $200 mln investment in Guinea bauxite firm to support 'broad-based growth'

International Finance Corporation, a member of the world Bank Group announced Wednesday that it is going to invest $200 million in the bauxite mining company Compagnie des Bauxites de Guinée in Guinea, to support 'broad-based growth' in the West African country that is still recovering from the devastations caused by Ebola epidemic.

The debt financing by IFC will support the proposed expansion at CBG's Sangaredi bauxite mine while creating jobs and upgrading transport infrastructure for the region. It is also going to be the largest foreign investment in Guinea recent times.

Guinea boasts of about 28 per cent of total bauxite reserves of the world, but the industry here is faced by challenges arising due to limited infrastructure and unstructured government procedures. IFC's investment in CBG is expected to contribute a significant $150 million in revenues to the government each year and boost infrastructural development that would eventually help in streamlining logistics for future bauxite projects in the region.

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"Guinea has been working toward improving conditions to attract investment on a much larger scale. The Sangaredi mine expansion and investments in the Kamsar-Sangaredi rail corridor provides an important opportunity to sustain employment for more than 5,000 staff and contractors while promoting high environmental and social standards. We look forward to working in partnership with CBG and the Government of Guinea to develop the bauxite industry,” said Philippe Le Houérou, IFC Executive Vice President and CEO.

Fifty one per cent stake of CBG is owned by Halco, a consortium of three major players in the aluminium value chain namely, Alcoa, Rio Tinto, and Dadco. The remaining 49 per cent of the mining company is owned by the Government of Guinea.

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