Emirates Global Aluminum (EGA), the UAE’s largest industrial company outside oil and gas, signed a three-year agreement to supply China’s Bosai Minerals Group with bauxite ore from the Republic of Guinea.
Under the agreement, EGA will supply Bosai Minerals Group with several million tons of bauxite ore each year, with the first shipment expected in January 2022. The company has supplied Bosai Minerals Group with over one million tons of bauxite in 2021 under short-term agreements. Bauxite is the ore from which aluminum is derived.
EGA’s bauxite mining subsidiary Guinea Alumina Corporation (GAC), which began production in 2019, made the company the world’s second-largest supplier last year of bauxite ore to third-party customers.
EGA invested $1.4 billion in the development of GAC, making it one of Guinea’s largest greenfield investments in the last 40 years. GAC owns and operates a 690-square-kilometer mining concession in Guinea’s northwest. Bauxite is mined and transported by train to GAC’s Kamsar port using shared rail infrastructure.
“EGA is now a major player in the merchant bauxite market, and our strategy mirrors our approach for cast metal – consistent high quality, reliably supplied, and with a focus on building mutually-beneficial relationships with our customers. We are delighted that Bosai Minerals Group joins a group of long-term EGA bauxite customers that is geographically balanced in four key regions.”
EGA operates a transshipment facility in Guinea, enabling its bauxite to be shipped using giant Capesize vessels, lowering shipment costs per ton.
Mr. Yuan Zhilun, Chairman of Bosai Minerals Group, said that “We welcome EGA as a long-term supplier of bauxite to Bosai Group, and look forward to the reliable supply of Guinean ore over the years ahead to drive our business.”