Dubai Aluminium Company Ltd (Dubal), one of the world’s largest aluminium smelters, has said it signed a deal to buy 40 per cent of the output of an alumina plant to be built by Canada’s Global Alumina Corp in Guinea, reports Reuters.

Government-owned Dubal said in a statement it also signed an agreement with Global over the first tranche of an accord reached in August to take a 25 per cent stake in the Canadian company.
“The first deal relates to the long-term offtake agreement for 40 per cent of the annual production of alumina from Global Alumina’s wholly owned Guinea subsidiary, Guinea Alumina Corporation SA,” CEO Abdullah Kalban said. He did not give financial details of the agreement.
“The second deal represents Dubal’s initial tranche of $20 million of an estimated $200 million equity investment in Global Alumina,” Kalban said.
“While the supply deal will ensure Dubal sticks to its capacity expansion schedules, the equity investment will entrench us as a key player in the global expansion drive,” Kalban added.
The 2.8 million tonne per year alumina refinery is expected on stream in late 2008, the statement said.
Pending certain conditions, Dubal agreed in August to initially subscribe for 10 million shares at a price of $2 per share for a total of $20 million.
Dubal will then subscribe for additional shares for a total price of about $180 million, and will hold 25 per cent of Global’s outstanding shares.
The UAE smelter plans to raise capacity to 861,000 tonnes annually from the current level of 761,000 tonnes.