Guinea is ready to begin shipping bauxite to China following the
completion of its Bel Air Mine. The West African nation plans to grow
its international trade revenues using the precious mineral, which is
the world’s main source of aluminium.
completion of its Bel Air Mine. The West African nation plans to grow
its international trade revenues using the precious mineral, which is
the world’s main source of aluminium.
The Africa Finance Corporation (AFC), the leading infrastructure
development finance institution on the continent, announced the on-time
completion of the Bel Air Mine in Guinea on August 9th, 2018.
development finance institution on the continent, announced the on-time
completion of the Bel Air Mine in Guinea on August 9th, 2018.
The Corporation also announced the loading of Guinea’s first shipment
of high-grade bauxite to China. The construction of the mine was
completed on time and to budget. It has now emerged that the country
will have a steady state production capacity will be 5.5 million tonnes
of bauxite per annum, which will add to Guinea’s average yearly exports
of 35 million tonnes of bauxite.
of high-grade bauxite to China. The construction of the mine was
completed on time and to budget. It has now emerged that the country
will have a steady state production capacity will be 5.5 million tonnes
of bauxite per annum, which will add to Guinea’s average yearly exports
of 35 million tonnes of bauxite.
The Bel Air Mine was developed by Alufer Mining Ltd, a leading
bauxite producer, and is located in the Boffa region of Western Guinea.
Alufer’s Bel Air Mine was financed as part of an international
investment consortium, which included AFC, the sole African private
sector financier, Orion Mine Finance, with over $2.5 billion in assets
under management, and Resource Capital Funds, a mining-focused equity
firm with over $2.5 billion under management.
bauxite producer, and is located in the Boffa region of Western Guinea.
Alufer’s Bel Air Mine was financed as part of an international
investment consortium, which included AFC, the sole African private
sector financier, Orion Mine Finance, with over $2.5 billion in assets
under management, and Resource Capital Funds, a mining-focused equity
firm with over $2.5 billion under management.
The total invested by the consortium was $205 million, making it the
first and largest foreign investment in Guinea since the 2014 Ebola
crisis.
first and largest foreign investment in Guinea since the 2014 Ebola
crisis.
During construction, the project employed over 1,500 people, 85% of
which were Guinean nationals and over half from local communities. This
marks a significant milestone for the Corporation, demonstrating its
commitment to investing across Africa and providing employment and
sustainable economic growth for those who need it most.
which were Guinean nationals and over half from local communities. This
marks a significant milestone for the Corporation, demonstrating its
commitment to investing across Africa and providing employment and
sustainable economic growth for those who need it most.
Creating a net-positive impact on the surrounding communities formed a
key tenet to the development goals of the project. To date, 40
community projects have been completed, including small infrastructure
projects that focused on power, water and waste management.
key tenet to the development goals of the project. To date, 40
community projects have been completed, including small infrastructure
projects that focused on power, water and waste management.
The AFC noted that long lasting livelihood projects have also played
an important aspect for developing the local economy. The creation of a
local development fund has been instrumental in supporting improvements
to farming practices that enhance product yields.
an important aspect for developing the local economy. The creation of a
local development fund has been instrumental in supporting improvements
to farming practices that enhance product yields.
“The scale of African demand for financing infrastructure investment
and maintenance is high,” Oliver Andrews, Executive Director & Chief
Investment Officer of the AFC commented.
and maintenance is high,” Oliver Andrews, Executive Director & Chief
Investment Officer of the AFC commented.
“Traditional sources of public financing and weakened economic
conditions in many regions of the world including those ravaged by
Ebola, have magnified the need for private capital,” he explained.
conditions in many regions of the world including those ravaged by
Ebola, have magnified the need for private capital,” he explained.
Andrews added that the timely and safe completion of construction of
the Bel Air Mine and associated transport infrastructure brings with it
not only employment opportunities but also much-needed connections with
international markets that will support sustainable growth for Guinea’s
mining industry.
the Bel Air Mine and associated transport infrastructure brings with it
not only employment opportunities but also much-needed connections with
international markets that will support sustainable growth for Guinea’s
mining industry.
On his part, Alufer Mining CEO, Bernie Pryor noted that the AFC has
been an integral partner in the success of the Bel Air Mine,
contributing to the sustainable approach to which the project was to be
delivered.
been an integral partner in the success of the Bel Air Mine,
contributing to the sustainable approach to which the project was to be
delivered.
“We look forward to working closely with AFC to deliver substantial
returns for all of our stakeholders and creating a positive and lasting
legacy for the people of Guinea,” he concluded.
returns for all of our stakeholders and creating a positive and lasting
legacy for the people of Guinea,” he concluded.
