FACTBOX-Africa's aluminium industry

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Thu Jun 19, 2008 6:49am EDT

 June 19 (Reuters) - Africa is home to some of the world's
biggest, purest bauxite deposits and has huge hydropower
potential to smelt it into aluminium, but pitiful infrastructure
and political risk are slowing capacity growth. [ID:nL19248664]
 Below are details of some planned expansions along with 2008
African capacity and estimated production figures for bauxite,
alumina and primary aluminium in tonnes.
 
 EXPANSION PLANS:
 * UK-based private equity firm Klesch announced plans in
February to open a new 725,000 tonne/year aluminium smelter in
Libya by 2011 as part of an $8 billion oil refinery project.
 * Abu Dhabi's state-run Mubadala and Dubai Aluminium (Dubal)
are studying a 700,000 T/yr aluminium smelter in Algeria.
 * Alcoa (AA.N) and Rio Tinto (RIO.L) are considering adding
an alumina refinery to their Guinea bauxite joint venture.
 * BHP Billiton (BHP.AX) (BLT.L) signed a deal with
Democratic Republic of Congo in 2007 to jointly build a $3
billion, 800,000 T/yr aluminium smelter using power from the
proposed Inga III hydropower station on the Congo river.
 * Cameroon's government and U.S. company Hydromine Inc. have
announced plans for a bauxite mine and 2.8 million-tonne alumina
plant for a cost of around $2 billion.
 
 PRODUCTION AND EXPANSION WOES
 * Global Alumina (GLAu.TO) delayed startup of planned 3.3
million T/yr alumina refinery in Guinea by two years to 2011 and
raised cost forecast 35 percent to $4.3 billion [ID:nL16384580].
 * Rio Tinto (RIO.L) put its planned aluminium smelter at the
COEGA site in South Africa on hold due to power shortages.
 * BHP Billiton (BHP.AX) said in March it was closing half
aluminium smelting capacity, or 120,000 T/yr, at South Africa's
Bayside plant due to power supply problems, while its other
plants in South Africa and Mozambique would reduce power use.
 * Cameroon's Alucam announced plans in 2005 to more than
treble its aluminium smelting capacity to 300,000 tonnes from
90,000, but progress has been delayed by environmental concerns
over building the dams needed to power the expanded smelter.
 * RUSAL plans to increase output from its Friguia alumina
refinery in Guinea to 1.05 million tonnes by 2009, from 527,000
tonnes. Guinea's government said in April the Russian company
risked losing the refinery over a contractual dispute, though
RUSAL said its contracts were fully legal and it had received no
correspondence from the Guinean government over the matter.
 * Ghana's VALCO aluminium smelter closed since March 2007
due to shortage of power from the Volta dam hydropower station.
 
                                         Capacity  Production
 BAUXITE: AFRICA (13 pct world capacity)   23.8 mln  22.3 mln
 GUINEA                                       21.6 mln  20.1 mln
 Compagnie des Bauxites de Guinee          15.0 mln  13.5 mln
    (Guinea State 49 pct, Rio Tinto 22.95
     pct, Alcoa 22.95 pct, Dadco 5.10 pct)
 Alumina Company of Guinea                  2.8 mln   2.8 mln
    (RUSAL)
 Compagnie de Bauxites de Kindia            3.8 mln   3.8 mln
    (RUSAL)
 SIERRA LEONE                                  1.2 mln   1.2 mln
 Titanium Resources Group TXR.L 
 GHANA                                         1.0 mln   1.0 mln
 Ghana Bauxite Company 
    (Rio Tinto 80 pct; Ghana State 20 pct)
 ------------------------------------------------------------
 ALUMINA (0.6 pct world capacity)           640,000   527,000
 GUINEA
 Alumina Company of Guinea/Friguia (RUSAL)
 ------------------------------------------------------------
 ALUMINIUM: AFRICA (5 pct world capacity)  2.21 mln  1.74 mln
 CAMEROON                                       90,000    80,000
 Alucam (Rio Tinto 46.7 pct, Cameroon 
         State 46.7 pct, others 6.6 pct)
 EGYPT                                         300,000   300,000
 EgyptAlum 
     (Egypt State 92.2 pct, others 7.8 pct)
 GHANA                                         200,000      --
 Valco (Ghana state 90 pct, Alcoa 10 pct)
 MOZAMBIQUE                                    510,000   502,200
 Mozal (BHP Billiton 47 pct, 
        Mitsubishi Corp (8058.T) 25 pct,
        IDC 24 pct, Mozambique state 4 pct)
 SOUTH AFRICA                                  920,000   721,800
 Bayside (BHP Billiton)                     250,000   107,200
 Hillside (BHP Billiton)                    670,000   614,600
 NIGERIA                                       193,000   131,500
 ALSCON (RUSAL 77.5%, Nigeria state 15%,
         Ferrostaal (MANG.DE) 7.5%)

 Reuters Metal Production Database, available to 3000Xtra users
here
 Other sources: Reuters; International Aluminium Institute
www.world-aluminium.org/; Middle Eastern media reports
 (Reporting by Alistair Thomson, Karen Norton, Tansa Musa,
Katrina Manson; Editing by Pascal Fletcher and Christopher
Johnson)

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