The loan has a tenor of 12 to 14 years and was offered by development finance institutions, export credit agencies and international commercial banks.
Image: First bauxite exports from the project are expected during the second half of 2019. Photo courtesy of Emirates Global Aluminium PJSC.
Emirates Global Aluminium (EGA), a large-scale industrial company in the UAE, announced that its wholly-owned subsidiary Guinea Alumina Corporation (GAC) has secured financing from for a greenfield mining project in Republic of Guinea. Production from the GAC project is expected to start during the second half of 2019.
The financing further strengthens the EGA’s bauxite mining project along with Guinea’s economy.
EGA said that the development finance institutions, export credit agencies and international commercial banks have participated in the project financing to grant £593.4m loan with a tenor of 12 to 14 years.
Financing to support the bauxite mine development
In addition, the financing supports the development of a bauxite mine and related transport infrastructure, including an upgrade to an existing multi-user rail system and the development of a port.
The approximately £1.1bn project is one of the largest greenfield investments in Guinea in the last 40 years and is an integral part of EGA’s strategy to integrate upstream in the aluminium value chain.
A later phase of the project envisages the construction of an alumina refinery.
EGA managing director and chief executive officer and GAC Chairman Abdulla Kalban said: “The partnership we have formed with GAC’s lenders secures the long-term success of our Guinea project and for EGA this project financing is in line with our capital allocation strategy.
“We are committed to completing and then operating the GAC project to high standards, contributing to improving sustainability performance in Guinea whilst helping to grow the economy.”
The International Finance Corporation (IFC) has provided financing of £261m including syndicated debt from commercial banks. The African Development Bank (AfDB) and Export Development Canada (EDC) have contributed £79.13m and £118.7m respectively.
The remaining financing has been provided by two European development finance institutions including PIDG’s company The Emerging Africa Infrastructure Fund, and commercial banks covered from political risk.