The Republic of Guinea has reportedly initiated proceedings to revoke the mining license of Emirates Global Aluminium (EGA), which, if announced officially, has the potential to impact the global bauxite production scene forever if the announcement comes to reality, it proves to be a part of Guinea's broader strategy to assert greater control over its mineral resources and ensure that foreign investments align with national interests.
EGA, jointly owned by Abu Dhabi's Mubadala and Dubai's Investment Corporation, operates the Guinea Alumina Corporation (GAC), one of the country's largest bauxite mining operations. Since commencing operations in 2019, GAC has been a major contributor to Guinea's bauxite exports, with around 14 million tonnes exported in 2022.
However, in October 2024, Guinea's customs authorities suspended GAC's bauxite exports, citing concerns over customs duties. This suspension led to a significant decline in EGA's bauxite exports, dropping from 14.1 million wet metric tonnes (WMT) in 2023 to 10.8 million in 2024. The export halt also impacted global aluminium prices, which rose by over 2 per cent in London due to supply disruptions.
Guinea's decision to revoke EGA's mining licence is part of a broader regional trend where governments in resource-rich West African nations, such as Mali, Niger, and Burkina Faso, are re-evaluating mining contracts to secure greater revenue and control over their mineral wealth. This shift is reshaping the dynamics of the global mining sector.
EGA has expressed its commitment to resolving the dispute, stating that it continues to "work hard to find a resolution with the government to resume our operations." The outcome of this situation will have significant implications for EGA's operations and Guinea's position in the global bauxite market.
The Emirati company began its operations in Guinea in 2019. EGA's activities in Guinea include a mining concession that spans 690 square kilometers and contains approximately 400 million tonnes of bauxite mineral resources.
However, EGA has been involved in a dispute with the Guinean government since October of last year. The authorities suspended the company’s bauxite exports and mining operations, citing concerns regarding customs duties.
"We have initiated the withdrawal of GAC's mining licence. A notification has been sent to this effect," one of the sources, a senior government official who requested anonymity because they were not authorised to speak, told Reuters.
Information credit: Reuters
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