A Bloomberg report says Abu Dhabi Ports is discussing a possible deal in Africa to leverage on the continent’s growing trade with Asia, especially Middle East. Chief Executive Officer of the government-run terminal operator, Mohamed Juma Al Shamisi said this in a Bloomberg Television interview from the company’s headquarters in Abu Dhabi, while announcing their $300 million investment deal with China.
Al Shamisi said that shipping between Africa and Asia is currently “booming,” and this opens up more opportunities for the terminal operator to invest in the continent. He did not divulge much detail on who else is involved in the talks or about the possible location of the venture.
“There are big volumes moving from Africa to the east, so we’re capitalizing in the east-east market which is still booming,” Al Shamisi said. “We see big potential moving forward.”
Such a deal with Africa would expand the company’s footprint on the continent. The company already has already been operating a terminal in Guinea, the West African country. Guinea holds the largest bauxite reserve in the world at 7.4 billon tonnes which is about a quarter of the world’s reserves of bauxite.
In June 2016, Emirates Global Aluminium (“EGA”) announced the construction of a major bauxite mine in the Republic of Guinea which will develop an initial 12 million tonnes per annum (Mtpa) bauxite mine in the Republic of Guinea. In December 2016, EGA announced the first bauxite bulk sample shipment of 55,000 tonnes from its Guinea mine to China. The aluminium major, which is starting an alumina smelter at Abu Dhabi Ports’ Khalifa Industrial Zone, is also building a bauxite mine in Guinea. A possible project by Abu Dhabi Ports in Africa will open up more opportunities for EGA or any other Asian and Middle Eastern companies that plan to invest in Africa or source bauxite from Guinea.
Source: China Aluminium Network