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UPDATE 1-Guinea aims to cancel alumina refinery sale

Sun Apr 12, 2009 6:35pm IST
 
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* Guinea's junta wants to cancel RUSAL refinery sale

* Junta plans to take legal action

(Adds detail, quotes, background)

By Saliou Samb

CONAKRY, April 12 (Reuters) - Guinea's ruling military junta said on Sunday it planned to challenge in court the 2006 sale of the Friguia alumina refinery to Russian aluminium company RUSAL.

Camara has made a series of threats to mining firms with operations in the world's biggest bauxite producer, a trend analysts says is destabilising an already fraught business environment for miners.

"We are going to take legal action to cancel the sale of the Friguia plant. A number of technicalities mean we can win this case," said Captain Moussa Dadis Camara, the head of the junta.

The plant employs more than 1,000 people and has capacity to refine enough raw material bauxite to produce 640,000 tonnes of alumina per year.

Camara made the remarks about the sale during a hearing with various officials involved in the sale.  Continued...

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