Russia's Rusal starts Dian-Dian bauxite project in Guinea

Kasen International Holdings

10/07/2014 16:36

MOSCOW, July 10 (Reuters) - Russia's Rusal  0496.HK , the 
world's largest aluminium producer, has launched the Dian-Dian 
bauxite project in Guinea, the company said in a statement on 
Thursday. 
    The decision to start the project comes amid continuing 
talks between Rusal, whose net debt stood at $10.3 billion at 
the end of March, and its creditors over debt restructuring. 
 ID:nL6N0PC1TE  
    Dian-Dian is the world's largest bauxite deposit with 
reserves of 564 million tonnes, the company said. Bauxite is 
used to producer alumina, which is then used for aluminium 
production. 
    The first stage of the Dian-Dian project involves the 
construction and putting into operation by 2016 of a bauxite 
mine with an annual capacity of 3 million tonnes with the 
potential for a further increase of up to 6 million tonnes, 
Rusal said. 
    The total investment for the first stage of the project will 
be more than $220 million, with a significant part of this 
budget reserved for infrastructure development in Guinea, 
specifically railway and port development. To transport bauxite 
from the mine, a new 25 km road will be built, Rusal said.  
    With the capital spending of $73 million per year over three 
years, Rusal will be able to finance it internally and will be 
able to increase its bauxite self-sufficiency to 93 percent from 
74 percent in 2013, Morgan Stanley said in a note. 
 
 (Reporting by Polina Devitt; Editing by Mark Potter) 
 ((Polina.Devitt@thomsonreuters.com)(+7 495 775 12 42)(Reuters 
Messaging: polina.devitt.reuters.com@reuters.net)) 
 
Keywords: RUSSIA RUSAL/GUINEA