On 6th September 2021, the bauxite price from Guinea has reached the highest almost in 18 months at top metals consumer market China, as buyers distressed about supply followed a coup in the country.
The West African nation Guinea is the world's second-largest producer of bauxite, keeping China behind.
Asian Metal assessed Guinean bauxite for delivery to China at $50.50 a tonne, up by1% from 3rd September and the highest since 16th March 2020. The prices soared by around 16% so far in 2021.
On 5th September, Guinea's President, Alpha Conde was overthrown by a unit of the army, which augmented a rally in aluminium prices to decade highs, spawning shares of global aluminium giant Norsk Hydro and Rusal to leap.
It is still not understandable whether the unrest had impacted any bauxite operations, the aluminium ore exploration which has positioned Guinea globally as a mineral hub.
Fadi Wazni chaired Société Minière de Boké (SMB), the country's top producer of bauxite is yet to comment on its operations.
However, a spokesperson for Aluminium Corp of China (Chalco), the world's biggest producer, said: “Our bauxite operations in Guinea are normal.”
A spokesperson from Compagnie des Bauxites de Guinée (CBG), said: “Our mines have not been impacted by the turmoil.”
Rusal released a statement on the situation in the Republic of Guinea by saying: “In connection with the events taking place in the Republic of Guinea, RUSAL’s number one priority is the health and safety of its employees and the continuity of its production processes. In case of further escalation, the Company is considering options for the evacuation of Russian personnel in the Republic. The company is monitoring the situation and is working closely with the Russian Embassy in Guinea.”
The world’s largest producer of low carbon aluminium, Rusal owns Compagnie Des Bauxites De Kindia SA in Guniea.
Boris Sinitsyn at Renaissance Capital said: "Bauxite and alumina prices have recently lagged aluminium quotes; any supply disruption might further propel them. Rusal is more than 100% covered by its alumina, making it immune to any price increases for this commodity.”
Eric Humphery-Smith, Africa analyst at Verisk Maplecroft, said: "Miners now have little other option than to sit tight and wait for further clarity from the transitional authorities.”
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