The Government of the Republic of Guinea has terminated its mining agreement with Guinea Alumina Corporation (GAC), a subsidiary of Emirates Global Aluminium (EGA), after suspending the company’s bauxite exports and mining operations.
The termination comes amid Guinea’s broader push to extract more economic value from its mineral resources by requiring miners to build local alumina refineries.
The military-led government, which seized power in 2021, had demanded that foreign mining companies, including GAC, present plans to process bauxite into alumina domestically.
According to EGA, despite GAC’s efforts to cooperate including offering concessions and exploring the feasibility of a refinery project the Guinean authorities escalated the dispute in Autumn 2024 by blocking GAC’s access to shared rail infrastructure and halting its bauxite exports. These actions ultimately forced a full suspension of GAC’s operations.
As a direct consequence of the termination, GAC has started the process of significant job cuts, initially affecting more than 2,000 employees and contractors. The company described the development as a major setback for the Boké region in western Guinea, where GAC has been a leading investor and employer.
GAC has been the largest greenfield investor in Guinea’s mining sector in over 40 years. It created 3,200 jobs, 96 per cent held by Guinean citizens and contributed USD 244 million in direct expenditures to the Guinean economy in 2024 alone.
Emirates Global Aluminium Chief Executive Officer Abdulnasser Bin Kalban said today, “These actions have made the continuation of GAC’s operations and the development of an alumina refinery impossible. The job losses this will cause, and the opportunity loss to the Guinean economy, are deeply regrettable.
“We have maintained GAC’s employee workforce in difficult circumstances for as long as possible. Our focus has been to honour the economic and social commitment to our people, their families and to the Republic of Guinea.”
Adding to the disruption, state-owned Compagnie des Bauxites de Guinée suspended all deliveries of bauxite to EGA’s operations in the United Arab Emirates, forcing the company to secure alternative suppliers abroad.
EGA has described the termination as wrongful and said it plans to pursue legal remedies through international tribunals to seek redress for the economic losses incurred. The company reiterated its commitment to its workforce and to the communities impacted by the shutdown.
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