Aluminium Corp of China (Chalco) is planning to invest $500m into a new bauxite production project in Guinea, according to Reuters.

Bauxite is the primary source used to make aluminium.

Secured after the Guinea mines Minister Abdoulaye Magassouba’s visit to China, the deal follows similar investments in the nation by other Chinese companies.

Guinea Mines Ministry Secretary General Saadou Nimaga was quoted by the news agency as saying: “The reserves of bauxite abandoned by BHP Billiton will eventually be exploited from 2018 by Chalco.”

The project lies in the Boffa area, which is located 200km from Conakry. It will be executed in three phases, with the total investment going towards the first phase.

“The reserves of bauxite abandoned by BHP Billiton will eventually be exploited from 2018 by Chalco.”

Aluminium production will also be taken up during the project execution.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

The development comes against the backdrop of increasing Chinese interest in African mining opportunities.

Last October, an agreement to acquire Rio Tinto’s 46.6% stake in the Simandou iron ore project in Guinea for up to $1.3bn was reached by Chinalco, the majority shareholder of Chalco.

China is a major importer of iron ore, which is used as a raw material in steelmaking.

The country’s iron ore imports increased by 7.5% to 1.024 billion tonnes last year, according to Xinhua News Agency.