Guinea strips EGA of bauxite rights, hands asset to state firm

[Redator]

Guinea has revoked a major bauxite mining concession from Emirates Global Aluminium’s (EGA) local subsidiary and reassigned it to a newly created state-owned company, citing violations of the mining code.

The move follows the military government’s termination of the original agreement with Guinea Alumina Corporation (GAC) in July. Exports from the site had been suspended since October due to GAC’s failure to build a promised alumina refinery. Originally due in 2022, the deadline was later pushed to September 30, 2026.

The concession has now been transferred to Nimba Mining Company, a state entity that will oversee both bauxite extraction and refinery development, according to a decree read on state broadcaster Radio Television Guineenne late Monday.

The new company will hold the concession for a renewable 25-year term and must maintain sufficient funding to ensure stable operations.

Guinea’s decision signals a broader trend across West Africa, where military-led governments are tightening control over natural resources and seeking greater revenue from mining deals. In June, Mali’s junta placed one of Africa’s largest gold mines, operated by Canada’s Barrick Mining (TSX: ABX)(NYSE: B), under state control for six months following disputes over back taxes and a new mining code.

That same month, Niger’s military government seized Orano’s uranium mine, accusing the French company of exceeding its ownership limits and hinting at a future sale.

Guinea remains the world’s top producer of bauxite, which is used to make alumina and ultimately aluminum.

Production at the EGA unit’s site located in the northwest of the country began in 2019, nearly two years behind schedule. Bauxite exports from the mine fell to 10.8 million tonnes in 2024, down from 14 million tonnes the previous year due to the suspension.

(With files from Reuters, Bloomberg)