/ 23 October 2007

Billiton may build $3bn aluminium smelter in DRC

Mining group BHP Billiton and the Democratic Republic of Congo (DRC) government would like to jointly build a $3-billion aluminium smelter using hydroelectric power, the firm said on Tuesday.

BHP Billiton, the world’s largest diversified mining company, signed an agreement with the government of the DRC on Monday about the proposed project in the western Bas Congo region, a statement said.

”We want to build the world’s most modern aluminium smelter in the DRC and operate it according to international best practice,” Vincent Maphai, chairperson of Billiton’s Southern African unit, said.

”Of course, the development of the Inga 3 hydropower project and the aluminium smelter project will be demanding.”

The smelter, envisaged to produce 800 000 tonnes of aluminium a year in its first phase, would use power from the proposed Inga 3 power station on the Congo River. The facility would use 2 000MW of power.

Concept studies for both the smelter and power station have been completed and feasibility studies would now be launched, the firm said.

Aluminium smelters need huge amounts of power and a major factor in deciding on where to build new operations is the power arrangements.

Billiton already operates two aluminium smelters in South Africa and one in Mozambique, with a combined capacity of about 1,43-million tonnes, about 3,7 % of world output. — Reuters