BHP Says 'No Question' to Build Guinea Aluminum Plant
Post Date: 21 Sep 2009 Viewed: 557
BHP Billiton Ltd., the largest mining company, is certain it will build a planned $4.8 billion aluminum plant in Guinea even after the government queried some deals between foreign companies and the previous administration.
"Guinea will be developed, no question about that," Jon Dudas, the company's head of aluminum, told an industry conference today in Dusseldorf, Germany. "There's a lot of fear in Guinea at the moment but there are some positive aspects as well." He didn’t say when construction will begin.
Melbourne-based BHP is developing the alumina refinery with Global Alumina Corp. and Dubai Aluminium Co.
Guinea, led by President Moussa Camara, won approval from a local court to seize a refinery owned by United Co. Rusal, the world's largest aluminum maker, presidential adviser Momo Sacko said on Sept. 11. Rusal yesterday said it hadn’t received court notification and would use "all legal means" to keep control of the site. Camara took power last year after a military coup.
In December, Guinea, the largest exporter of bauxite, told Rio Tinto Group to hand over part of an iron-ore concession. The country is also reviewing accords between the last government and companies including AngloGold Ashanti Ltd. Alumina is refined from bauxite ore and used to make aluminum.
Camara took power on Dec. 23 in a coup following the death of Lansana Conte, who ruled for 24 years.
BHP's planned 3.3 million-metric-ton-a-year refinery, which also includes a bauxite mine, was delayed after alumina demand slumped and construction is expected to begin at about the end of next year, Toronto-based Global Alumina said in May. The refinery is expected to take about four years to build and start up, Global Alumina Chairman Karim Karjian said at the time.
BHP and Global Alumina each own 33 percent of the development, while Dubai Aluminum controls 25 percent and Mubadala Development Co. the remainder.