Production from Guinea's Alufer bauxite mine delayed until 2017

Operations at Guinea’s Alufer Bel-Air bauxite mine experienced a setback as its extended negotiations with the government pushed back production at the site by a year to 2017.

The independent miner had earlier announced its plans to invest around USD 400 million to develop the Bel-Air open-pit mine near the coast of the West African country, which is home to almost one-third of the world's reserves of bauxite. Production had been expected to begin in 2016.

However, administrative problems over the terms of a contract delayed the entire project. A basic production agreement needs to be signed with the mining company first and ratified by parliament.

"We had a first round of negotiations in Conakry and we now need to meet again in the coming weeks to continue with them," said a Guinean official.

Guinea government has hired U.S. legal firm Brown Rudnick for the negotiations, while Alufer is being advised by Herbert Smith Freehills. President Alpha Conde's government has said it wants to enhance bauxite production by 30 percent by the end of the year. The commitment on the part of the government is of high significance because despite its massive reserves, Guinea still ranks fourth in global bauxite production.