Guinea Alumina Corp. receives $460mn from IFC, MIGA

Guinea Alumina Corporation (GAC) has received a USD 460mn debt and guarantee package from the IFC and MIGA to support GAC’s bauxite project and associated retail and port infrastructure in Guinea. The IFC is providing a total loan facility of USD 330mn to the project. This includes syndicated debt from seven commercial banks. MIGA has committed political risk guarantees of up to USD 129mn to the same commercial lenders.

The total loan facility is USD 750mn.

The project’s cost is estimated at USD 1.4bn and is one of the largest foreign investments in Guinea. It comprises the development of a twelve million tonne per annum bauxite mine, the expansion of multi-user rail infrastructure along the Sangarédi-Kamsar transport corridor and the construction of a new export port terminal at Kamsar. The project promotes greater linkage between Guinea’s mining sector and global markets, helping the country establish itself as a world-class producer and exporter of bauxite.

GAC’s 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 USD 50mn in government revenues on average each year.

GAC is a wholly-owned subsidiary of Emirates Global Aluminium.