Operations - Overview

Overview

Global Alumina’s principle asset is its one-third, joint-controlling interest in Guinea Alumina Corporation, which holds a concession to mine bauxite and build one or more world-class alumina refineries in the Republic of Guinea in West Africa. 

Global Alumina’s long-term goal is to capture a significant share of the growing demand for alumina through refinery development and expansion in Guinea.  Guinea Alumina’s first 3.2 million metric tons-per-year refinery is designed to accommodate a 50 percent physical expansion and a gradual 15 percent increase in output over 20 years through operations improvements.  Guinea Alumina also has the prospect of building a second like-sized refinery within its current concession and has commenced second refinery site studies.  The new alumina port terminal area is designed to accommodate alumina throughput of more than 10 million tons per year.

Phase I

The initial  phase of Guinea Alumina’s first alumina refinery—currently underway entails construction of the first two of three 1.6 million metric tons-per-year alumina processing lines at a site within its concession area. The site is approximately 14 kilometers north of the country’s existing 20 million metric tons-per-year rail line that extends approximately 100 kilometers west to the existing port of Kamsar.  For the first 25 years, bauxite would be drawn from the three closest of  the 19 bauxite-bearing plateaus within its concession area. 

Through mid-year 2007, Guinea Alumina has invested approximately $300 million in the front-end development, engineering, environmental, social, and early works’ construction.  To date, the port terminal area has been cleared and filled and all affected people comfortably resettled.  A contract has been let to build an upgraded commercial container quay at the port, a new 100-meter road bridge is under construction at Boke to clear the only road transportation bottleneck from the port of Kamsar to the refinery site, and the pioneer construction is camp built and operating.  Access roads to the refinery, township and quarry sites have been completed.  The quarry is opened, rock crushing equipment and a concrete batching plant installed; earthworks have begun for the rail spur and at the refinery site.  Storm water pond blasting and dyke construction is underway, pile testing is progressing, 15,000 metric tons of steel piles have been procured for refinery foundation and pile driving should commence in October.  Finally, resettlement at the refinery site has begun and a vocational training program has been funded and is in final planning stages.

Feasibility Study

Guinea Alumina retained Bechtel, which conducted a verification study for BHP Billiton, DUBAL and Mubadala, to complete a bankable feasibility study by December 2007.  The current preliminary construction plan estimates a $3.2 billion cost to complete the entire project with alumina production starting in the year 2011.  Guinea Alumina is continuing Phase I enabling works pending delivery by yearend of the final bankable feasibility study, and subsequent full construction mobilization and notice to proceed.

Aluminpro

Global Alumina also owns Aluminpro Aluminium Industry Professionals, Inc., an international consulting firm based in Canada with about 30 senior professionals with considerable knowledge and world-class operating and managerial experience in the upstream aluminum industry.  Aluminpro supports Global Alumina’s interests and efforts through considerable early-stage conceptual engineering and ongoing technical management contributions.  See www.aluminpro.com.