Guinea coup leader seeks mining companies support for the development of national economy

The army unit head of Guinea who lead the coup, solicited the mining companies to support the development of the nation’s economy, even though he assured the industry that production would be allowed to pursue unhampered following the political turmoil on 5th September.

Colonel Mamady Doumbouya, the chief of the elite army that dethroned President Alpha Conde, said: “The country has undisputed mining potential, but the populations remain in  poverty.”

On 16th September during the meeting with mining houses, he said: “We must work together to turn this curse into an opportunity to improve people’s living conditions.”

The West African nation Guinea is the world’s second-largest producer and top exporter of bauxite. The aluminium ore accounts for most of the West African nation’s mining exports. Guinea competes with Australia as China’s largest bauxite supplier, yet the citizens live a poor livelihood. Although most of the bauxite is shipped out of the country, little effort has been given to transform it locally.

Col. Doumbouya said in his speech: “We must accelerate the second phase of the value chain, such as the transformation of bauxite into alumina, and then into aluminium.”

Frederic Bouzigues, General Manager of Societe Miniere de Boke (SMB), Guinea’s biggest miner said: “The new leadership stressed that existing regulations, contracts and investments will be respected.”

“In return, they expect miners to respect their engagements with regards to contracts, comply with environmental rules and continue local development work”, he added.

The political instability in Guinea intensified the bauxite supply constraints that have propelled aluminium prices to the highest level in 13 years. The military group took early steps to deliver confidence to miners and withdrew curfew in mining areas shortly after seizing power and urged companies to keep functioning and kept the nation’s ports operational.

Ismael Diakite, President of Guinea’s Mining Chamber, said: “So far, every decision and measure has been in favour of the mining sector.”

The Russian aluminium giant Rusal and Aluminium Corp. of China Ltd. stands as the vital investor in Guinea.

The army unit’s meeting with the mining industry took place as regional heads of state held a second emergency meeting on 16th September to discuss the emergency in Guinea. ECOWAS has called for the immediate release of Conde, who is still being detained and threatened sanctions to press for an early return to civilian rule.