“Mine here, refine here” — is Guinea’s underlying approach for 50+ external miners! But Guinea is not alone in this bargain...

Guinea, a West African country bordered on the west by the Atlantic Ocean, has an economy that is profoundly intertwined with its bauxite mining industry, which serves as a cornerstone of national economic activity, export earnings, and foreign investment. Recently (May 2025), Guinea announced the repossession of 51 mining licenses, including those for bauxite, citing non-compliance with development timelines and operational requirements. This includes licenses for companies like Kebo Energy SA and Emirates Global Aluminium, specifically due to their failure to fulfil commitments to build local alumina refineries. This serves as a strong warning to other major operators.

But why is the country, whose economic development largely depends on bauxite trade, taking such an eccentric decision?

Bauxite is one of the most exploited mining resources in Guinea, accounting for 33.7 per cent of Guinea’s exports in 2021. Guinea exported over 102 million tonnes of bauxite in 2022, becoming the world’s second-largest bauxite exporter. The Ministry of Mines reported a 19 per cent increase in bauxite exports in 2022 compared to 2021.

The mining sector, including bauxite, consistently contributes a substantial portion to Guinea’s GDP. Recent figures show that it contributes around 18-22 per cent of GDP. For instance, in 2021, mining accounted for 21 per cent of GDP, and in 2022, it was 20.01 per cent. In 2023, Guinea’s economy experienced a growth rate of 7.1 per cent, primarily driven by a 22 per cent surge in bauxite production. The mining sector, encompassing bauxite, gold, and iron ore, contributed approximately 18 per cent to the nation’s GDP.