Guinea Alumina Project

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The Guinea Alumina Project (the "Project") is comprised of a bauxite mine, alumina refinery, power plant and a port facility, located in the northwest quadrant of the Republic of Guinea in West Africa. IFC has an opportunity to participate in a landmark and pioneering project in Guinea by investing in the first new alumina refinery and resource downstream project in the country in 54 years. The Government of Guinea (the “Government”) and the general populace are particularly interested in the employment, vocational training and SME development potential of the project, which will be implemented through the Guinea Alumina Corporation (the “Project Company”) by the shareholders (the “Sponsors”), with the assistance of IFC. In addition, there is a strong commitment by the sponsors to achieve demonstrable socio-economic improvements in the communities to be impacted by the Project.The estimated total project cost (excluding financing costs) is $5.2 billion. The project has been granted a mining concession by the Government with an estimated 1.4 billion tonnes of bauxite. The refinery will process approximately 10 million tonnes of wet bauxite per year to produce approximately 3.3 million tonnes per annum (“mtpa”) of alumina for over 50 years. Process optimization over the years could result in an upsize capacity approaching 4 Mtpa. The refinery has been designed to allow for a 50% capacity increase in alumina production. Project infrastructure includes: (i) a coal fired power plant producing 90 MW of electric power and between 500-700 tonnes of steam per hour. The refinery’s calciners will use heavy fuel oil, with the potential to switch in part to biofuels if reliable and economic supplies can be procured; (ii) port facilities including a dedicated alumina terminal and container quay at the existing port of Kamsar; (iii) a new 14 km railway spur from the refinery site to the existing main railway line and short spur connecting the main railway line to the alumina terminal; (iv) water reservoir and red mud (waste by-product of alumina production) dam disposal facilities; and (v) an employee housing camp. Alumina is an intermediate product in the conversion of bauxite to aluminum. The majority of alumina produced globally is sold to aluminum producers on the basis of long term contracts priced off the aluminum London Metals Exchange (“LME”). The project company offtake agreements will be of a long-term nature, priced in reference to the LME high grade Aluminum 3-month price.