News

Over the past few weeks, reports have circulated about the Guinean government revoking between 50 and 100+ mining contracts, sparking fears of a potential paralysis in bauxite exports.

This concern is not far-fetched, especially given the ongoing halt of all bauxite exports from Guinea Alumina Corporation (GAC), a subsidiary of Emirates Global Aluminium, since October 2024 (see our previous update: https://www.budd-pni.com/guinea-ban-on-gac-bauxite-exports/).

However, based on information gathered by Budd Guinea, many of the 100+ contract cancellations to date primarily involve:

• Companies mining minerals other than bauxite (e.g., gold, iron, diamonds).
• Companies whose licenses had already expired or ceased operations some time ago.
• Smaller, less established mining companies.

This appears to be part of a broader audit by the Ministry of Mines & Geology, following a recent decree reaffirming its role. The Ministry seems to be revoking licenses for companies that are not meeting their contractual obligations.

The situation remains fluid, with individual company statuses changing daily as some negotiate renewals while others lose their licenses.

While nothing is ever certain, we do not anticipate major bauxite exporters like Société Minière de Boké-Winning Consortium (10% government-owned) or Compagnie des Bauxites de Guinée (49% government-owned) to be affected.

Guinea’s Mineral Landscape: Guinea holds the world’s largest bauxite reserves and is a leading global exporter, primarily to China for aluminum production. Beyond bauxite, the country also exports significant quantities of iron ore, gold, and diamonds, with iron ore exports from the Simandou project expected to grow substantially.
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Need More Information?
For further details on revoked mining licenses or for bauxite quality control during loading, please contact Budd Guinea directly at budd.guinea-conakry@budd-pni.com or fode-mario.camara@budd-pni.com.