Guinea‘s Alufer Mining Limited is set to receive an investment package of $205 million to fund the development of the country’s high grade bauxite reserves.
The $205 million deal from an international consortium including Africa Finance Corporation (AFC) will be one of the largest foreign investments in the country since the 2014 Ebola crisis, according to a press release copied to ghanabusinessnews.com.
Once complete, the project will increase production levels in line with global demand, which at present outpaces supply. Currently, there is a greater than 6 per cent per annum 5-year growth forecast for aluminium consumption, primarily driven by Chinese demand, the release said.
These shifts in supply and demand dynamics create an opportunity to ship high grade bauxite ore from Guinea to markets such as China on economically attractive terms, thereby boosting Guinea’s GDP. At present, Guinea has a trade deficit ratio of c.20:1 with China, it said.
“Mining exports have historically played a crucial role in Guinea’s economy, accounting for up to a quarter of Guinea’s exports,” Oliver Andrews, Chief Investment Officer of AFC was quoted as saying in the report.
“As global demand for aluminium increases, AFC is proud to be the sole private sector African investor in the Bel Air Mine, developing a world class mine that adheres to best practise environmental principles. We are also encouraged to see that Alufer has been working with the local community to develop sustainable projects which assist in the provision of drinking water, as well as development of local infrastructure and job creation,” he added.
AFC is experienced in building and developing African economies that have suffered conflict and crisis. For example, AFC has been instrumental in the re-construction of Cote d’Ivoire following the country’s civil war through investments such as the Henri Konan Bridge and in Liberia AFC financed the post Ebola rebuilding of certain fuel import and storage facilities damaged by the country’s long running civil conflicts.
It further notes that investment in Guinea’s infrastructure will help to rebuild and diversify the economy following the Ebola crisis.
Alufer currently holds a ratified mining convention in the Bel Air Project of western Guinea, as well as licenses linked to the Labé Project in central Guinea.
By Pamela Ofori-Boateng
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