(MENAFN - Saudi Press Agency) Compagnie des Bauxites de Guinee (CBG) signed a long-term supply agreement with the UAE for bauxite, the main raw material in aluminum, the Gulf countrys state news agency reported.
The contract was concluded between CBG and the UAE's investment fund Mubadala Development Co.
Guinean Mines Minister Mohamed Lamine Fofana was quoted as saying at a signing ceremony in Abu Dhabi that the deal would add 500 million to Guinea‚„s gross domestic product.
The agreement with Mubadala will make a significant contribution to Guineas economy by enabling the expansion of CBG to more than 20 million metric tons of bauxite per year,‚ Fofana said on Friday.
Guineas government said in a separate press release that Mubadala had said it needs 5 billion tons of bauxite by 2017.
The Guinean company CBG - a joint venture between the Guinean state and a consortium of companies including Halco Mining Inc, Alcoa, Rio Tinto, and Dadco - has an annual production of 13.5 million tons.
A CBG official in Conakry told Reuters it would take the company at least three or four years to raise production to 20 million tons per year.