Emirates Global Alumina (“EGA”) is the Project sponsor and 100% shareholder of GAC. EGA is a United Arab Emirates-based aluminium conglomerate with interests in bauxite/alumina and primary aluminium smelting. It is owned equally by Mubadala Development Company (Mubadala) & Investment Corporation of Dubai (ICD).  

The total project cost is estimated at approximately US$1.4 billion. IFC’s proposed investment includes an A-loan of US$150 million for IFC’s own account, and up to US$350 million in mobilization from commercial banks, Development Finance Institutions (DFIs) and parallel lenders. The remainder will be funded by other lenders and sponsor’s equity (EGA).

150.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	150.0
Equity

* These investment figures are indicative

The Project is located in the Boké region of north-western Guinea, about 265 km north-west of Conakry, the capital of Guinea.

Macro-economic impacts: The Project is expected to make a significant contribution to Guinea's economic growth through increased production and export of Bauxite and associated job creation and economic activity from the local supply chain. The Project will further strengthen Guinea's position as a key global supplier of bauxite for decades to come. Fiscal impact: The Project is expected to generate significant revenue streams to the Government of Guinea (GoG). Direct contributions to the GoG will consist of royalties, local development and corporate taxes over the life of the mine. Employment: At peak of the construction phase, the Project will employ approximately 3,500 people. During operations, GAC is expected to have 650 direct employees, of whom 520 will be local. The Project is also expected to generate significant indirect employment estimated at 9,800 jobs in the supply chain including service companies, construction, transport and maintenance operations. GAC is also establishing a skills development program for local employees which includes operational and safety training as well as leadership and language skills. Community development and linkages program: GAC is implementing a range of social and economic development and linkages programs to stimulate economic development in the Boke region, ranging from local training and skills development, local content development, health and safety initiatives, and local infrastructure development, among others. IFC will provide ongoing advice to further enhance the impact on local community and supplier development.

IFC has considered the governance risks to Project benefits and is satisfied that the Project should be supported. In evaluating this investment, IFC has reviewed a variety of governance metrics, including the Worldwide Governance Indicators, Transparency International’s Corruption Perceptions Index, the World Bank’s CPIA and Doing Business Report and the World Bank Group’s engagement in the country. Guinea ranks low across these metrics but has been consistently improving over the past few years. The government has embarked on a comprehensive strategy to tackle governance weaknesses with development partners, including the World Bank and has made good progress in recent years culminating, for example, in the passing of a new mining code that was promulgated in April 2013. The main improvements brought by the new code include its strong anti-corruption/pro-transparency stance. Guinea has completed its Extractive Industries Transparency Initiative (“EITI”) membership process and is fully compliant as of 2015. Guinea’s validation against the new 2016 EITI standard will commence 1 July 2018. GAC’s mining convention has been disclosed to the public. The government continues to receive extensive technical support from the World Bank and African Development Bank aimed at building capacity in the Ministry of Mines and Geology and improving mining regulations. The World Bank is also engaged in improving public financial management, further ensuring that mineral revenues will be invested more effectively in infrastructure and human capital. The current government, which won reelection in October 2015, remains committed to improving governance in the mining sector.

IFC's expected additionality includes: (i) Long term financing & mobilization: IFC's proposed US$150 million A loan provides critical long-tenor financing with a 14 year tenor not typically available in Guinea. In addition, as Mandated Lead Arranger, IFC is mobilizing up to US$350 million in B loans, parallel loans and DFI financing for the Project. (ii) E&S Standards: IFC is playing a leading role amongst the arranging banks in helping the Project achieve best practices in E&S sustainability through its adherence to IFC's Performance Standards. IFC is also providing significant support towards the creation of an unprecedented aggregate biodiversity offset for the Project. (iii) IFC Industry Expertise: IFC provided extensive in-house technical expertise on mining, rail and port aspects of the Project to ensure bankability and mitigate implementation and operational risks. For example, IFC supported the implementation of the Kamsar-Sangaredi corridor's rail multi-user infrastructure sharing framework, which is unique in the Africa context.

This is a category A project per IFC’s Policy on Environmental and Social Sustainability due to the potentially significant, diverse, and irreversible environmental and social risks and impacts associated with the project. The project areas are associated with Critical Habitat under Performance Standard 6. The project will also trigger physical and economic displacement and influx. It is also expected to contribute to cumulative regional impacts due to other bauxite mining activities. Thus, the key E&S risks and impacts include biodiversity and ecosystem services, physical and economic displacement, population influx, and cumulative impacts.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.