Bauxite Angola leads the mining sector diversification strategy

The Angolan Government is investing to begin production of bauxite, the most important aluminium ore, at home and in other African countries as part of its programme to spur alternative sources of economic growth, apart from petroleum and diamonds.

“The importance of the aluminium industry to Angola comes in various fields and can be viewed from various angles,” says Bernardo Campos, chairman of Bauxite Angola. “Angola wants to diversify its industry, so it will no longer be an industry based solely on oil and diamonds, and can be strengthened by industries that also rely on other metals and minerals.”

Bauxite Angola SA is a company that was created in 2007 by the Governments of Angola and Guinea-Bissau and various private investors to carry out mining operations and investments in several different areas.

BxA, as the company is known, was granted concessions in two parts of Kwanza Sul province by the Angolan Government in 2008 to prospect for bauxite and is also the owner of the mining rights to bauxite deposits in Guinea-Bissau and of concessions in Guinea-Conakry.

After falling in 2009 because of weak demand, the price of aluminium is rising again. It is expected to continue to be strong in coming years as demand from China and other emerging economies grows and as the metal is substituted for copper wire in some countries.

“Today the US for example is trying to replace many copper cables with aluminium cables and builders are using aluminium cables instead of copper because aluminium has other characteristics, such as conductivity, that are being increasingly sought,” explains Mr Campos.

Demand from Angola itself is also expected to rise, boosted by the Government’s ambitious infrastructure investment programme. Con-struction of new homes, offices and other buildings will require aluminium for doors, windows and other structures.

The development of the aluminium industry in Angola will spread benefits far beyond the creation of jobs in mining, transport and management, Mr Campos points out. It will help create jobs in sectors only partly related to the mining industry and bring in much needed investment and expertise.

Angola will need to increase its electrical generation capacity for the power-hungry industry and improved transport, telecommunications and lodgings infrastructures will be necessary. Some of this will come from Government construction programmes, but much will also come from private investors seeking to profit from the growing industry.

BxA is actively seeking partners to help it with its many endeavours and sees Europe as a natural source of investment, business and technical experience that will be needed to successfully carry out its projects.

“Europe has the know-how that Africa needs to absorb and Africa has resources that Europe needs,” says Mr Campos. “We can join together in equality to reciprocal advantage, working together to develop projects in which both parties gain.”