Renewed hope is emerging for Emirates Global Aluminium's (EGA) subsidiary in Guinea as it hopes to restart conversations with the Guinean government. The discussion will centre around revoking the measures restricting continuing bauxite mining operations.
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A dispute between the firm and the Guinean government has hovered since October 2024 as the authorities pulled strings from mining operations and bauxite exports. The customs authorities of Guinea blocked GAC's bauxite exports by significantly highlighting concerns regarding customs duties.
Also read: EGA's bauxite mining licence to be revoked by military-governed Guinea?
However, as reported by Reuters, a process was launched to revoke the EGA's Guinea bauxite mining wing’s licence for failing to build a domestic alumina refinery. On the other hand, Guinea Alumina Corporation (GAC), a subsidiary of EGA, mentioned in a recently released statement its continued success in meeting obligations under the agreement signed with Guinea.
A similar revocation has been slapped upon Kebo Energy SA, where its mining concession was dismissed, citing the firm's failure to meet its investment commitment towards the development of a domestic alumina refinery in Guinea.
Some other causes behind these failures, leading the military-led government to revoke licences and concessions, are that the foreign companies operating in Guinea have targeted only high-grade ore and neglected substantial reserves of medium-grade bauxite. In response, the Guinean government started to reform the mining laws and renegotiate contracts, prompting efficient resource management.
At present, GAC hopes to settle down by negotiating with the respective authorities to nullify all the blockade measures against its operations. However, this request was left unheard immediately by the representatives of Guinea's military-led government.
GAC has stated, "Since October 2024, the Guinean Government and certain Guinean public entities have taken a series of measures against GAC (and the wider EGA group) that run counter to the contractual and international commitments of the Republic of Guinea."
The company firmly stated in an official statement that the restriction has adversely affected its overall operations. This further led to operational termination in December 2024, indicating a severe financial loss for the firm and its shareholders.
According to Reuters, as of May 27, GAC in Guinea had collected a stockpile of nearly 2 million tonnes of bauxite since the stoppage of its operation last October. This further creates an urgency for the firm to negotiate with the Guinean government.
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