The SMB-Winning Consortium signs three agreements with the Republic of Guinea for a total investment of three billion US dollars
Following a Memorandum of Understanding signed on March 21, 2018, the SMB-Winning Consortium, represented by Société Minière de Boké (SMB), has signed three agreements with the Government of the Republic of Guinea for the execution of a comprehensive project for the Boké region.
These are (i) the construction of a 135 km railway line in a corridor from the Boffa to the Boké region, (ii) the production and industrial exploitation of 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.
Total investment by the Consortium for the whole project is estimated at US$3 billion.
The new mining deposits are expected to come on stream in 2022, with a projected production of 10 million tons 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 that will link the mining areas of Santou and Houda (Télimélé Préfecture) to the Dapilon river terminal (Boké Préfecture). 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 by the end of 2018. Construction will begin in 2019 and operations in 2022.
With a capacity of up to 1 million tons per year, the refinery will be powered by a dedicated power plant equipped with advanced slag processing technology in compliance with applicable environmental standards. During the construction phase, the refinery is expected to create several thousand jobs and mobilize local companies with expertise in civil engineering, quarrying, construction and services. The total cost of the investment is estimated between US$700 million and US$900 million.
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 have expressed in entrusting us with the development of new mining resources in the Boffa region. With its world-class deposits, Guinea can become a major player in the international bauxite value chains. Our refinery project will trigger a wider transformation in the Guinean mining sector, particularly in the Boké Special Economic Zone. This first industrial diversification will also help to create more value locally.”
Mr. Fadi Wazni, Chairman of the SMB Board of Directors, said:
“The agreements signed today are a strong signal for the industrial and commercial development of the Boké region and even the whole country. Beyond industrial investments, the agricultural project associated with the new rail corridor and our actions in favor of communities testify to our objective of transforming our mining operations into a real pillar of national socio-economic development. We aim to integrate our activities into the territories to be a long term partner of the country.”
Founded in 2014, the SMB-Winning consortium brings together three global partners in the fields of bauxite mining, production and transportation: Singapore’s Winning Shipping Ltd, a leading Asian shipping company; 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 is a partner and a member of the consortium with a ten percent stake. Since its inception, SMB-Winning invested over US$1 billion in its extractive activities in the region of Boké. The consortium, which works directly and 9,000 people also built and manages two river ports.
For more information, visit smb-guinee.com