China Power to invest $6 bln in Guinea bauxite, alumina project
Shanghai. August 22. INTERFAX-CHINA - State-owned utility China Power Investment Co. Ltd. (China Power) will invest $6 billion to build a bauxite mine and an alumina refinery along with a port facility in the town of Boffa on the west coast of Guinea, industry consultancy Mysteel.com said Aug. 22.
The refineries are expected to produce 12 million tons of bauxite and four million tons of alumina annually, Umetal analyst Hu Kai told Interfax.
But Guinea's unstable political situation means China Power faces the risk of losing its mining rights if the government changes, the analyst noted. Guinea's current government came into power by coup in 2008.
Guinea is the world's biggest exporter of bauxite, an aluminum ore. China relies on imports for half of its bauxite supply.
Aluminum Corp. of China Ltd. (Chalco) currently operates an iron ore mine in the country, analyst Wan Ling from metals consultancy CRU told Interfax.
-PY