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Guinea's mines minister announces a rapid alumina and iron ore processing.

Guinea's mines minister has told reporters that the country will accelerate the development of iron ore pellet and alumina refineries to stop decades of raw ore shipments. The first shipments of iron ore from the huge Simandou mine are expected this week.

The World Bank stated in July that alumina and ore processing within Guinea could be a game changer for the country's economy, creating industrial jobs while reducing Guinea's exposure to swings in commodity prices.

Guinea exports about 60% of its bauxite to China as a feedstock, and a third is iron ore from the Simandou Mine, which is shipped to Chinese mills.

Conakry signed a deal to build its first alumina refining plant with the Chinese state-owned SPIC. Construction is underway, and completion is expected by 2027.

He said that talks for new plants have advanced with Chinalco, France's Alteo and are ongoing with Compagnie des Bauxites de Guinee, Alcoa and Compagnie des Bauxites de Guinee.

Sylla stated, "We are now the largest bauxite producers in the world... but no refineries have been built since colonial days." "That will soon change."

GUINEA PLANS SIX REFINERIES BY 2020

Guinea has joined a number of mineral-rich African nations, from oil driller Nigeria to gold producer Mali, that have been pushing to increase domestic refining capacities in recent years. This is a key step to maximising profits, increasing economic growth, and reducing expensive imports.

Sylla stated that the country plans to install between five and six alumina refining plants by 2030. This will increase domestic processing capacity to approximately 7 million metric tonnes annually.

According to the Minister, the West African nation revoked in August the bauxite contract awarded to an Emirates Global Aluminium unit after it failed to build the alumina refinery that was promised locally.

EGA didn't immediately respond to an inquiry for comment.

Allison Ju, of SMM, said that China's alumina project in Guinea will not reduce its dependency on Guinea as the exports would simply switch from bauxite to alumina.

Guinean bauxite is low in silica, and suitable for low-temperature refinement. It accounts for 25% of the global aluminium production.

GUINEA TARGETS IRON ORE MANUFACTURING ALSO

Sylla stated that Guinea wants to process iron ore at home, in addition to alumina.

Sylla stated that current agreements require Rio Tinto, Winning Consortium Simandou and the Simandou joint development company to study and construct a 500,000 ton steel plant or 2 million ton pellet facility.

Djiba Dikite, Chief of Staff to the President, stated that partners are required to submit feasibility studies within two years after first exports.

If the Guineans fail in their study, they can hire an international firm to do it at the expense Compagnie du Transguineen - the joint venture that manages Simandou's port and rail services.

Sylla stated, "We are confident that we have determined the minimum capacity to design this facility based on sound financial principles."

Rio Tinto’s Simfer venture which operates a part of the Simandou Project has committed to a feasibility study for a pellet factory in order to understand the viability and the options available. A Rio Tinto spokesperson said on Monday.

WCS didn't immediately respond to an inquiry for comment.

The proximity of Guinea to Europe and America gives it an advantage in logistics over Middle Eastern hubs. Sylla added that pellets and direct-reduced iron for green steel were the preferred paths.

Sylla acknowledged that energy remains Guinea's biggest obstacle, but said the country is pursuing hydro, solar, and liquefied gas investments. This includes a U.S. backed plan to import LNG as fuel for power plants. (Reporting and editing by Clara Denina, Jan Harvey and Maxwell Akalaare Adombila)

(source: Reuters)