EGA signs an agreement for transshipment of bauxite in Guinea

Emirates Global Aluminium has signed a 15 year agreement with LD Ports & Logistics, a subsidiary of Louis Dreyfus Armateurs, for the transshipment of bauxite in the Republic of Guinea. Louis Dreyfus Armateurs and Abu Dhabi Ports separately signed an undertaking to form a joint venture company to work together to implement the project.

EGA will be loading bauxite at the port of Kamsar in Guinea from both its own Guinea Alumina Corporation project, which will supply customers around the world, and from Compagnie des Bauxites de Guinée for supply to EGA’s Al Taweelah alumina refinery in Abu Dhabi. Louis Dreyfus Armateurs is a global marine transport and services group.

Kamsar is located on the river Nunez some 17 km from the open sea and is inaccessible for the world’s largest vessels.

EGA already works with Abu Dhabi Ports in Guinea. Abu Dhabi Ports manages a container terminal built by EGA at Kamsar port.

Speaking at the signing ceremony, Abdulla Kalban, EGA’s Managing Director and Chief Executive Officer, said: “EGA has set an ambitious growth agenda to expand upstream and internationally. Transshipment is an important link in the chain that will connect our alumina refinery and aluminium smelters in the UAE with bauxite mines in Guinea, and will also lower shipping costs from GAC to global bauxite markets.”

Gildas Maire, Chief Executive Officer of Louis Dreyfus Armateurs said: “These agreements with EGA and Abu Dhabi Ports expand our geographic and operational footprint in West Africa. We are pleased to be partnering with these UAE leading companies, and to play a part in the development of Guinea’s economy by helping to enable the competitive transport of Guinean bauxite.”

EGA is currently developing the GAC project in Guinea, a bauxite mine and associated export facilities. First bauxite from the project is expected during the second half of 2019. The GAC project is one of the largest greenfield investments in Guinea in the past 40 years, and will be a new global source of bauxite supply. Bauxite is the ore from which aluminium is derived.

EGA is also building the UAE’s first alumina refinery at Al Taweelah in Abu Dhabi. First alumina is expected during the first half of 2019. Al Taweelah alumina refinery is expected to meet 40% of EGA’s alumina needs once full ramp-up is achieved.

The transshipment system for GAC will consist of self-propelled barges that will shuttle from the GAC berth at Kamsar port to two  floating transfer stations. For bauxite destined for Al Taweelah alumina refinery, LD Ports & Logistics will use a gearless Panamax that will shuttle from the Compagnie des Bauxites de Guinée berth to a transshipper

Bauxite for Al Taweelah alumina refinery will be unloaded at Khalifa Port in Abu Dhabi. In December, EGA and Abu Dhabi Ports signed a long-term port facility agreement which enables Abu Dhabi Ports to develop Khalifa Port to become the first in the Gulf capable of directly handling the world’s largest bulk cargo vessels.

Abu Dhabi Ports will fund and complete dredging and widening works to the Khalifa Port approach channel and basin including EGA’s berth.

Port of Kamsar is situated on the North Western Coastline of Guinea, West Africa, on the East Bank of the River Nunez. It is located approximately 17 km from open sea; the port is in a naturally sheltered position.

Due to restrictions at the berth and channel, shopping of bauxite will take place in two stages: full transshipment at Kamsar and Ocean Freight.