There has been a change to BHP Billiton's long held plan to exit what was once trumpeted as USD 5.2 billion alumina development opportunity in bauxite rich Guinea.

A plan in which BHP would have sold its one third stake to the original promoter of the alumina project, Canada's Global Alumina Corporation, has been replaced with a deal under which the Middle Eastern partners in the project will pick up the stakes of BHP and Global Alumina.

BHP confirmed that Dubai Aluminium and Abu Dhabi state owned Mubadala would be jointly acquiring its stake on undisclosed terms. Global Alumina was more forthcoming, saying the pair would be acquiring its matching stake at a cost of USD 38 million.

Dubai Aluminium owns 25% of the project and Mubadala 8.33%. Although there has been no substantive work on the project since 2009 because of tough times in the aluminium industry, the BHP led JV did spend more than USD 700 million on preparatory work including moving two villages from the bauxite lease, building roads and bridges, clearing the site for the alumina refinery and export port upgrade work.

Apart from the poor aluminium industry outlook, the escalating sovereign risk for resource project developments in Guinea has been a factor in the alumina project failing to meet its original first production target of 2010.

Earlier this week Mr Andrew Mackenzie new CEO of BHP made a virtue of BHP's pull back from investment in riskier locations. Our decision to focus on the OECD was deliberate and I would argue increasingly looks like the right call.