The West African nation, Guinea which is recognised as the world's biggest exporter of bauxite is currently ruled by the Guinean military junta’s resolution to amplify the revenue generation from its bauxite and iron ore resources is anticipated to hurt the Chinese endeavour to make an invasion into the bauxite rich nation.
However, in spite of all the assurances delivered by the present government that it would respect all the “existing regulations, contracts and investments” following the dethroning of Alpha Condé as President in September 2021, Guinea has been deploying more pressure on foreign mining firms. Freshly, it instructed foreign companies to design a plan for locally processing bauxite into alumina construct and in March the government also suspended operations at Simandou, the nation’s biggest iron ore reserve.
The Chinese metal and mining companies have mighty investments in Guinea, which is the world’s leading producer of bauxite. It needs to be notified that about half of China’s bauxite imports are from Guinea.
But suddenly, Guinea’s military junta have changed their stances toward multinationals, by demanding they want the mineral-rich nation to inflate its earnings from its mineral resources. A few days back, the government ordered mining companies to come up with proposals and a timetable by May for the construction of alumina refineries, which would process the locally mined bauxite to alumina within Guinea.
Mamady Doumbouya, the junta leader commented during a meeting with stakeholders in Conakry, “Despite the mining boom in the bauxite sector, we have to admit that the expected revenues are below expectations, and you and we cannot continue this game of fools that perpetuates great inequality in our relations.”
Doumbouya further stated without imparting specifics, that the international miners should take it as a warning, as penalties would be implicated if the mining firms dwindle to meet the said deadline. Previous, it was reported that the bauxite miners were resolute for alumina refineries in Guinea, while the progress is negligible.
The Chinese groups that include Chalco Guinea, Jinjiang Group Guinea, TBEA Guinea, Henan International Guinea and Zibo Rundi Guinea are however in the preliminary investment stage.
Although, after all these issues emerged, the global industry analysts pinned that they are still uncertain if this would have immediate repercussions.
W. Gyude Moore, a renowned senior policy fellow with the Centre for Global Development and a former Liberian public works minister stated, “Presentation of plans would not automatically translate to aluminium production.”
He further continued by saying, “Most African governments harboured ambitions of moving up the value chain of their mineral exports, so the junta’s announcement is not surprising.”
On a bigger note, bauxite is not the only mineral from which Guinea is demanding more royalties.
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