Bauxite and Alumina Industry - PowerPoint Presentation

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Bauxite and Alumina Industry in Guinea : The way forward. An update

THE REPUBLIC OF GUINEA

By

Mohamed Lamine SY SAVANEDirector General of Center of Promotion and Mining Development

TABLE OF CONTENTSIntroductionGuinea Bauxite deposits: a world class mineral

endowmentExisting bauxite and alumina

operationsThe way

forward 4.1. A new policy to entice new developments 4.2. Infrastructures, a key issue for the industry

4.3. New

projects

at

different

development

stages

5. Conclusion

Introduction Needless to say that

Guinea has a large Bauxite endowment.

According to Mamedov, the

Guinean bauxite resources are evaluated at more than 40 billions metrics tons, one of the world largest.

Up to 2016 bauxite production has been

around

18-20 millions tons a

year

. But this production has reached 49 millions in 2017 and more projects are underway.

Bauxite and Alumina operations :Three bauxite mines and an alumina plant were in operation in Guinea before 2017: CBG, SMB, CBK, FRIGUIA

Two new mines started production in 2017: Henan Chine, AMR

2018 has seen so far a new mine opening

: Guinéenne des Mines (GDM)

Guinea

Bauxite

deposits

: a world class

mineral

endowment

COMPAGNIES

PRODUCTION 2017

PRODUCTION FORECAST

2018

CBG

14,44

15,00

SMB

29,564

30,00

HENAN CHINE

2,00

5,00

CBK RUSAL

3,00

3,00

CBK DIAN

DIAN

1,00

ALUFER

1,50

GDM

2,00

TOTAL

49

57

Policies to entice new developments A strong positive political will

; A more business friendly mining administration;

A new mining code to ensure good

governance, enhance community development in order to reduce conflict, and to confer good stability to mining

agreements

;

Renovated cadastral system with more efficiency, well deviced; Mining Cadastre online since March 2017;

Better incentive to transform locally; A one stop shop for delivery

of all authorizations; Sustainability a must in all process; Guinea

among the five most reformer countries in the word (Word Bank).

The

way

forward

What is done to alleviate the burden

Infrastructure Sharing Policy developped by government

Infrastructure Sharing Schemas developped

on 3 Corridors: Nord-West, Centre and South EstA multi-users agreement signed betwen CBG-GAC et COBAD on Boke Railways; implementation in

progress

A

regulatory

framework largely put in placeBOT law, Public Private Partnership (PPP) law Work

in progress to update the mining infrastructure schemaMining Infrastructures : an investment

opportunities: Rent A Port, CHEC, COSCO, Winning, Yantai Port

Infrastructure, Keys issues for the Industrie

Based on the new policy implemented by the Government and the opportunities created by the market, many bauxite and alumina

projects are under consideration

in Guinea. CBG (extension), GAC, COBAD,

Eurasian, Dynamic mining, FAR, SBG, TBEA, Ashapura mining…. are developping new projects

New

Projects

in

Development

Three (3) Phases:Phase 1: (18.5 Mtpa) execution is now in progress

. Advanced construction stage Phase 2: 23.5

Mtpa of shipped

materials @ 3% humidity:2019Phase 3: 28.5 Mtpa of shipped materials

@3%

humidity

: 2023

Phase 1

fully financedExtension Project

at CBG

Location Boke PrefecturePhase 1: Operation in 2019 (Q4)Bauxite mine of 12 Mtpa

Upgrade of existing railway

and develop port infrastructures with

12 Mtpa capacity Cost estimated around 900 millions USD

Guinea

Alumina Corporations

Located Boké PrefectureBauxite mining project at Dian-DianProjected Capacity: 3

Mtpa to be

increased at 6

Mtpa Works in progress on road to carry bauxite from mines to railroad Jetty for export near kamsar.

Will

be

using

existing railway under the multi user agreement.First production in September 2018.

Compagnie des Bauxite de Dian Dian

Bauxite Mining Project at Bel-Air BoffaConstruction works just started

on siteProjected capacity

: 5 Mtpa

to be increased at 10 MtpaCapital

Cost

:

200 Millions USD

,

Diversifed investorsTrucking by Raod (15 kms

) to stockpileExport jetty at Bel-Air

for transhipping at high sea

Production: Q3 2018

Alufer

GAC: Phase 2 of GAC Project = 2022 , 2 Mtpa-refinerySocieté des Bauxites de Guinée: Phase 2: Phase Alumina refiney in Mamou region (Central Guinea):

1Mtpa; 2020, infrastructure allowingSPIC-Guinee:

4Mtpa staged-alumina rafinery

with deep sea Port at Bel-Air –Boffa Prefecture. A possible Joint Venture with Henan chineFRIGUIA: Revamping of old

refinery

and

increase

of

capacity with a new line, production in Juine 2018.COBAD: phase 2-after 2020, 2Mtpa alumina refineryTBEA: Alumina in phase 2 SMB:

Ongoing discussions for building alumina refinery with own infrastructures

Alumina Projects

Other Projects

N0

Companies

Partners

Projects

capacity

Projected

Dates

o

f Production

Observations

1

Alliance Mining

Coomodities

(AMC)

Diversified

Investors

5 Mtpa-Phase1

10Mtpa- Phase 2

2018

Mining Concession

granted

Mining agreement

signed

2

Societé des Bauxites de Dabola (SBDT)

IMIDRO (Iran)

4Mtpa

2020-21

Pipe line for transport??

3

TBEA

TBEA

 Bauxite: up to 10

Mtpa

in phase 1

 2019

Mining concession and

mining

agreement

signed

4

Société des Bauxites de Guinée (SBG)

Diversified

European

Investors

 Bauxite: 3

Mtpa

Alumina: 1,6

Mtpa

Mining concession granted

Mining agreement in discussion

5

Dynamic Mining

Indian Investors

Bauixte

: 3

Mtpa

May increased later

 2020

Exploitation

licence

granted

Ongoing discussions for mining agreement

6

SPI-Guinea

State Power Investment (SPI) CHINA

Bauxite:12 Mtpa

Alumina: 4Mtpa

 chronogram under review

7

Eurasian

Russian investors

5 Mtpa

2018/2019

Exploitation

licence

granted

8

CHINALCO

CHINALCO-CHINA

Bauxite-6Mtpa-Phase 1

12 Mtpa-Phase2

Alumina: 2

Mtpa

Exploitation

licence

granted

Ongoing discussions on mining agreements

9

Forward Africa Resources (FAR)

Diversified Investors

 3

Mtpa

 2019

 Exploitation

licence

granted

Bauxite Mining Titles in Guinea

They are investing in the Guinean bauxite sector

They are financing the Guinean mining sector

Guinea, a place where bauxite resources are located;Guinea is eager to

develop its bauxite production capacity;

Government is

keen to take all steps to make this happen;Many active bauxite

projects

for an

estimated

60 millions place

capacity around 2020;Alumina projects are still on

board: at least a new plant may starts production around 2022- wait

and see.

Conclusion

Guinea is becoming a top destination for mining companies in the WorldGuinea is on the verge of becoming the top exporter of high-grade bauxite in the World and is continuing to attract investors to develop its gold, iron ore and diamond resources among others.

Guinea is becoming a top destination for mining companies in the World

THANK YOUWWW.MINES.GOV.GNhttp://guinee.cadastreminier.org