Guinea seizes bauxite mine from Emirates Global Aluminium

GUINEA’S military government has transferred a bauxite mining lease from Emirates Global Aluminium’s local subsidiary to a newly established state-owned entity, escalating tensions over unfulfilled refinery commitments.Bloomberg News reported on Tuesday that Tthe West African nation terminated the basic agreement governing EGA subsidiary Guinea Alumina Corp’s concession in July after suspending the company’s bauxite exports since October. The suspension followed the firm’s failure to meet pledges to construct an alumina refinery, the newswire said.Mining and Geology Minister Bouna Sylla confirmed the company lost mining rights for breaching the mining code and agreements. The refinery completion deadline was initially set for 2022 before being extended to September 2026.The concession now belongs to Nimba Mining Company, which will oversee both bauxite extraction and refinery operations under a renewable 25-year lease, said Bloomberg citing a government decree broadcast on state television.Bloomberg News said Guinea’s move reflects a broader trend across mineral-rich West African nations, particularly those under military leadership, to increase profit shares from joint ventures and tighten control over mining assets.Guinea ranks as the world’s largest bauxite producer, supplying the raw material refined into alumina for aluminum smelting.Production at the northwestern site began in 2019, nearly two years behind schedule. Bauxite exports dropped from 14 million tons to 10.8 million tons last year due to the shipment suspension, said Bloomberg News.The post Guinea seizes bauxite mine from Emirates Global Aluminium appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com