Alcan, Alcoa and Government of Guinea Sign Agreement for Alumina Refinery in Guinea

Alcan Inc and Alcoa World Alumina LLC, a joint venture between Alcoa and Alumina Ltd., with Alcoa holding 60 percent, today announced they signed a Basic Agreement with the Government of Guinea that sets forth the framework for development of a 1.5 million metric tonne per year (mtpy) alumina refinery in Guinea with further expansion potential.

The Basic Agreement, which is a significant milestone, includes the following elements:

• A majority ownership by Alcan and Alcoa World Alumina of at least 80 percent, with an option for the Guinean State to acquire an equity stake;

• Supply of bauxite to the refinery by Compagnie des Bauxites de Guinée (CBG). CBG is a partnership between the Government and Halco Mining, with Halco holding 51 percent. Halco is owned 45 percent each by Alcan and Alcoa World Alumina;

• Access to existing infrastructure;

• While bringing significant revenues to the government of Guinea, tax and customs regime would provide favourable conditions for an investment of this scope;

• Sale of alumina from the refinery to Alcan and Alcoa World Alumina.

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