Project Description
On April 10, 2019, MIGA issued guarantees of up to US $127.6 million to a syndicate comprised of ING Bank, BNP Paribas, Société Générale, First Abu Dhabi Bank PJSC, Mashreqbank PSC, Natixis and Emirates NBD Bank, through ING Bank N.V. acting as PRI Agent, to cover non-shareholder loans to Guinea Alumina Corporation S.A. (GAC or the Project), a wholly-owned subsidiary of Emirates Global Aluminum. The guarantees are issued for up to 12 years against the risks of Breach of Contract, Expropriation, Transfer Restriction, and War and Civil Disturbance.
The project consists of the development and operation of a greenfield open-pit bauxite mine with an expected mine life of 20 years and production capacity of 12 million tonnes per annum (Mtpa), the expansion of an existing railway, and the development of associated marine and port infrastructure. The mine is located in the Boké region of Guinea, approximately 300 kilometers northwest of the capital city of Conakry.
Environmental Categorization
The project is a categorized as A under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by the International Finance Corporation (IFC), which is participating in the project as a lender.
Development Impact
The project is expected to create around 1,000 permanent jobs. Construction is well advanced and more than 4,600 temporary jobs were created at peak and as many as 9,800 jobs are expected across the economy through the project’s local supply chain. The project is also expected to generate US$50 million in government revenues on average each year.
