World's largest iron producer wants biofuels for its operations in Guinea

The world's leading iron producer is very concerned about the long-term outlook of the energy costs of its operations. Brazilian mining giant and metals producer Companhia Vale do Rio Doce (CVRD) therefor wants to help countries where it is investing make the transition to biofuels and bioenergy [*french].

The steps involved in the production of ferrous and nonferrous metals are highly energy intensive. It is therefor crucial for metal mining and production companies to ensure stable and secure energy supplies, and if possible at low costs. CVRD is involved in ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. The company’s aluminum-related operations include bauxite mining, alumina refining, and aluminum metal smelting. In addition, it provides logistics services, including railroad, coastal shipping, and port handling operations, as well as general cargo, bulk terminal storage, and ship loading services that are integrated with its mining operations.

CVDR has extensive experience with biomass as a fuel for iron ore production. More specifically, it relies on eucalyptus wood for its smelters in Brazil. This experience and a careful analysis of longterm energy supply and price trends has led the company to launch a bioenergy and biofuels program in Guinea. It wants to assist the government of the African country, where it holds large mining rights on iron and bauxite, to build a robust energy economy and infrastructure based on biodiesel, ethanol and solid biofuels:

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The small African state of Guinea does not produce any oil or natural gas itself and therefor understands the importance of fossil fuel dependence. It wants to overcome this dependence by relying on locally produced green fuels. Guinea's soils and climate are diverse, with in the South a subtropical humid zone where oil palm and sugar cane can be cultivated, whereas in the more central zone cassava is the most suitable energy crop. Still more to the north, in Guinea's arid Sahelian zone, both jatropha and groundnut can be grown.

The country of 10 million is relatively prosperous compared to its neighbors, and it was spared the deadly civil wars which raged in neighboring Liberia and Sierra Leone. Some 80% of Guinea's population lives from agriculture, with 40% of all Guineans living below the poverty line.

Investments in a bioenergy industry coupled to the mining and ferro-industry promises to bring a vast number of jobs.

No concrete news about the actual projects and investments has been released, but we will certainly follow up on this announcement. More and more companies are looking at potential synergies between bioenergy and mining operations. Especially in African countries with a young mining industry, reliance on biofuels becomes interesting because fossil fuel infrastructures are often absent, and rising energy prices and the instability of supplies strengthen the case for green energy as an integrated part of this heavy industry.

More information:
L'Aurore (Conakry): Guinée: CVRD, la brésilienne veut des Biocarburants pour la Guinée (via AllAfrica).