Dubai: Aluminium and Mubadala said they will acquire the remaining part of Guinea Alumina Corporation they don’t already own, a move that secures long-term access to bauxite used at UAE smelters.
The two parties are purchasing the interests in GAC from BHP Billiton and Global Alumina Corporation, the two other partners who jointly owned the Guinean company, according to a statement from Mubadala on Thursday. The deal is part of the restructuring of their Guinean joint venture. Financial details weren’t disclosed.
Mubadala entered into the $3 billion (Dh11 billion) joint venture with the three other partners in 2007. Back then, it said it would own a 8.3 per cent stake in GAC, while Dubal owned 25 per cent and the two other partners 33.3 per cent each.
“Upstream development is part of the UAE’s aluminium strategy, as we continue to build a global champion in this sector,” said Waleed Al Mokarrab Al Muhairi, chief operating officer of Mubadala. “We are especially pleased to be able to further develop our investments in bauxite and alumina in Guinea,” he added. Bauxite is the main source of aluminium.
Guinea is one of the world’s biggest exporters of bauxite. Under the 2007 agreement, the four investors planned to develop the $3 billion Sangaredi Refinery project in the hope of gaining access to low-cost alumina. The refinery was supposed to have the capacity to produce 3 million tonnes of alumina a year.
Mubadala owns stakes in various industries ranging from aerospace to metals and mining. It owns 50 per cent of Emirates Aluminium.
In a separate statement on the Toronto exchange, GAC said it signed an agreement to sell all its interests to a vehicle owned by Mubadala and Dubal. Under the agreement, the buyers will make a $2 million signing payment to GAC, with an additional $36 million to be paid upon the deal’s completion.
