SMB-Winning Consortium Signs 3 Agreements with Republic of Guinea for Total Investment of $ 3 Billion
(SOCIETE MINIERE DE BOKE) – Under a memorandum of understanding concluded on March 21, 2018, the SMB-Winning Consortium, represented by the Mining Company of Boké, has signed with the Government of the Republic of Guinea three conventions for the implementation of an integrated project for the Boké region.
These include (i) the construction of a 135-kilometer railway line in a corridor from the Boffa area to the Boké area, (ii) production and industrial exploitation. bauxite resources in the new mining areas of Santou II and Houda; and (iii) the construction and operation of an alumina refinery in the Boké Special Economic Zone.
The Consortium has also committed to a large-scale agricultural development project along the railway corridor.
The total investment for the entire project by the Consortium is estimated at US $ 3 billion.
The new mining deposits are scheduled to start operating in 2022, with a projected production of 10 million tonnes in the first year. Production is expected to reach 20 million tons in 2023 and 30 million tons in 2024. The bauxite will be evacuated by the railway which will connect the mining areas of Santou and Houda (Prefecture of Telimele) to the Dapilon fluvial terminal (Préfecture de Boké). It will require the construction of six bridges and two long tunnels for a total investment of US $ 1.2 billion. The technical studies will be completed at the end of 2018 for a start of construction in 2019 and a start of operations in 2022.
With a capacity of up to 1 million tonnes per year, the refinery will be supplied by a dedicated power plant equipped with advanced slag treatment technology in compliance with applicable environmental standards. During the construction phase, the refinery is expected to create several thousand jobs and mobilize local companies that are experts in civil engineering, quarrying, construction and services. The total cost of the investment is between 700 and 900 million US dollars.
Mr. Sun Xiushun, Honorary Consul of the Republic of Guinea in Singapore and President of Winning International Group, said: “We would like to thank the Guinean authorities for the confidence they expressed in entrusting us with the valuation of new mineral resources in the region of Boffa. With its world class deposits, Guinea can become a major player in the international value chains of bauxite. Our refinery project will trigger a broader upscaling of the Guinean mining sector, especially in the Boké Special Economic Zone. This first industrial diversification will also make it possible to create more value locally. ”
Mr. Fadi Wazni (photo), Chairman of the SMB Board of Directors, said: “The conventions signed today are a strong signal for the industrial and commercial development of the Boké region and the wider country. Beyond the industrial investments, the agricultural project associated with the new railway corridor and our actions in favor of the communities testify to our objective of transforming our mining operations into true pillar of national socio-economic development. We aim to integrate our activities in the territories in order to fully play our role as long-term partners for Guinea. ”
About the SMB-Winning consortium
Founded in 2014, the SMB-Winning Consortium brings together three global partners in the field of bauxite mining, production and transportation: Singapore’s Winning Shipping Ltd, a leading Asian shipowner; UMS, a transport and logistics company present in Guinea for more than 20 years; Shandong Weiqiao, a leading Chinese aluminum company with 160,000 employees and annual sales of US $ 45 billion. The State of Guinea, partner and member of the consortium, is a shareholder of 10%. Since its inception, SMB-Winning has invested more than US $ 1 billion in extractive activities in the Bok region. The consortium, which directly employs more than 9000 people, also built and manages two river terminals. For more information, visit smb-guinee.com