31 DECEMBER 2012FoxBusiness
Rusal To Develop Dian-Dian Bauxite Deposit
Edited by : AL CIRCLE
2 min read
United Co. Rusal PLC said Monday it has signed an agreement with the government of the Republic of Guinea to develop the Dian-Dian bauxite deposit, the world's largest.
The deal calls for developing the mine to be able to produce up to 3 million tons of bauxite by 2015. Rusal will also complete a feasibility study by the end of 2015 on raising production to nine million tons a year, as well as building an alumina refinery with an annual capacity of 1.2 million tons.
The goal would be to have the refinery running and the mine producing up to six million tons a year by 2019, the company said. If global demand improves, Rusal says it hopes to boost production to up to 12 millions tons a year and capacity at the refinery to 2.4 million tons annually by 2021.
An agreement over the Dian-Dian deposit was considered key to settling a number of unresolved contract issues between Rusal and the West African country's government. Last year, the country approved a new mining code raising tax liabilities for foreign miners and increasing government control over projects.
Under the deal, Rusal would own 100% of the mine and the refinery, the company said.
"The project development conditions, which we have agreed upon, were elaborated in the interests of both parties and reflect our view on the prospects of the global aluminum market development," said Rusal's first deputy chief executive Vladislav Soloviev.
The agreement still requires approval by Rusal's board, the company said.
The deal calls for developing the mine to be able to produce up to 3 million tons of bauxite by 2015. Rusal will also complete a feasibility study by the end of 2015 on raising production to nine million tons a year, as well as building an alumina refinery with an annual capacity of 1.2 million tons.
The goal would be to have the refinery running and the mine producing up to six million tons a year by 2019, the company said. If global demand improves, Rusal says it hopes to boost production to up to 12 millions tons a year and capacity at the refinery to 2.4 million tons annually by 2021.
An agreement over the Dian-Dian deposit was considered key to settling a number of unresolved contract issues between Rusal and the West African country's government. Last year, the country approved a new mining code raising tax liabilities for foreign miners and increasing government control over projects.
Under the deal, Rusal would own 100% of the mine and the refinery, the company said.
"The project development conditions, which we have agreed upon, were elaborated in the interests of both parties and reflect our view on the prospects of the global aluminum market development," said Rusal's first deputy chief executive Vladislav Soloviev.
The agreement still requires approval by Rusal's board, the company said.
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