Exclusive: Guinea initiates process to cancel EGA's mining licence, sources say
Emirates Global Aluminium operates one of the largest bauxite mines in Guinea through its Guinea Alumina Corporation (GAC) subsidiary.
The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here.
The company has been in a dispute with the government of Guinea since October last year when its bauxite exports and mining operations were suspended by the authorities, which cited concerns over customs duties.
"We have initiated the withdrawal of GAC's mining licence. A notification has been sent to this effect," one of the sources, a senior government official who requested anonymity because they were not authorised to speak, told Reuters.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
11 hours ago
- The Guardian
Blue gold: how a Ghana mine's troubles hit workers and UK politicians – and could cost British taxpayers
In late 2020, amid the economic maelstrom unleashed by Covid-19, there were few better places to be than sitting on top of a goldmine. In Ghana, the west African country once called the Gold Coast by British colonisers, the Bogoso-Prestea mine was producing 4,000 ounces of the precious metal a month, valued at $6m (£4.5m). As gold prices reached record highs, London-based Blue International Holdings – a seasoned investor in African energy projects, pounced to buy the mine for $95m. Blue International promised 'attractive financial returns while having a positive impact on the communities and countries in which it operates, and the planet as a whole', according to its website. It enjoyed the backing of a trio of British political heavyweights, including two members of the House of Lords and a government minister. Yet, a few short years later, its future appears to have tarnished. And, as the Guardian reveals now, the venture appears to have resulted in collateral damage to everyone from Ghanaian mineworkers to a member of the British royal family, a billionaire backer of the GB News TV channel and, possibly, UK taxpayers. 'Blue Gold is a scam' read a placard, as protesters, backed by a brass band, voiced their discontent in February 2024. It was the latest in a string of demonstrations as miners and suppliers in the resource-rich Ashanti gold belt demanded to know why they were seeing no benefit from the precious metal buried beneath their feet. Four years earlier, when Blue International arrived, the future had seemed promising. The company boasted a track record of African investment stretching back to 2011, steered by its co-founders Andrew Cavaghan and Mark Green, professional investors with financial pedigree. As well as its new goldmine in southern Ghana, the company also owned a promising hydroelectric power project in Sierra Leone, a partnership with the government in Freetown. It came with a phalanx of prestige backers, drawn from the British political and business elite. Lord Dannatt, the former head of the British army, and Lord Triesman, a Foreign Office minister with responsibility for UK diplomatic relations in Africa, served on its advisory board. So, too, did Philip Green, who was rebuilding his reputation after the implosion of the government outsourcer Carillion, which collapsed during his time as chair in 2018. John Glen, a Treasury minister between 2018 and 2023, held shares in the company. The UK taxpayer was also significantly exposed. In early 2024, it emerged that the Treasury had lent Blue International £3.3m of taxpayers' money via the 'Future Fund' the previous year. Glen, the MP for Salisbury in Wiltshire, said he was not aware of the loan application when he served at the Treasury and there is no suggestion that he did. The Future Fund was designed, in the words of then chancellor Rishi Sunak, to support 'start-ups and innovative firms' survive the pandemic by extending them loans that converted into equity. In this case, the money supported a company engaged in extracting valuable minerals from African soil. In mining, all can appear calm on the surface, even as things fall apart below ground. By the time British taxpayers' money was pumped into Blue International, its Ghanaian venture was on the brink of a financial collapse whose tremors reached from rural west Africa to the City of London. Within two years of Blue International's takeover, operations at Bogoso-Prestea had been shut down several times, according to corporate filings and contemporary reports. Mineworkers blamed lack of investment from Blue, which owned and operated the mine via a local subsidiary, Future Global Resources (FGR). Lack of output choked off cashflow and increased costs, as equipment failed or required maintenance, according to one corporate filing. FGR failed to pay local suppliers, including the Ghanaian state electricity company, while mineworkers were left out of pocket, according to filings, fuelling local protests. 'It had devastating consequences,' said Abdul-Moomin Gbana, the general secretary of the Ghana Mineworkers' Union (GMWU). He said workers' salaries went unpaid for months, hitting the community hard. 'General conditions declined because they had no income. The communities virtually became ghost towns,' he said. 'It became obvious that if nothing was done, there was no way there could be a future for the mine.' Blue Gold declined to answer questions about the claims of unpaid wages, and directed questions to FGR. FGR did not respond to requests for comment. Eventually, in 2024, the Ghanaian government issued an ultimatum. Blue International must restore the mine to working production or hand back its lease, the right to own and operate the site. The company tried to issue bonds – a form of IOU – in Ghana to raise cash that could be invested in bringing the mine back to production but the fundraising effort stalled. The directors behind Blue International, Cavaghan and Green, restructured the debt-laden mine's ownership, moving it into a new entity called Blue Gold, also owned and incorporated by them, as part of a plan to raise new investment in the US. Despite this, in late 2024, the government of Ghana made good on its threat to seize back the Bogoso-Prestea lease. A legal challenge from the company failed earlier this year in Ghana's high court and the mine was handed over to a new operator. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Blue International's travails were not felt only by Ghanaian miners and the surrounding community. The British taxpayer's investment in the business now appeared to be under threat too. But it was blue-blooded lenders that suffered the more profound consequences. In 2021, at the start of its Ghanaian venture, Blue International had borrowed about $5m from Devonport Capital, a bespoke lender specialising in 'high-risk' jurisdictions, offering short-term loans at relatively high interest rates. Devonport, headquartered in Plymouth, was founded by Paul Bailey, a corporate lawyer who had carved out a niche advising investors in postwar Iraq. His partner was Thomas Kingston, who had also worked in Iraq conducting hostage negotiations for the UK Foreign Office in Baghdad, where he had witnessed first-hand the horrors of sectarian violence. In the UK, Kingston was better known for his marriage, in 2019, to Lady Gabriella Windsor, a second cousin of King Charles III. With this experienced and well-connected duo at the helm, Devonport thrived, recording pre-tax profit of £6m in 2023. But as Blue International's Ghanaian woes mounted, it began defaulting on the interest payments it owed to Devonport. Another of Devonport's important borrowers also defaulted at the same time, leaving the lender increasingly unable to repay its own creditors. Then, in February 2024, personal tragedy struck. Thomas Kingston died from a gunshot wound at his parents' home in the Cotswolds on 25 February. A coroner ruled that he had taken his own life. Torn apart by a combination of personal tragedy and the ongoing inability to recover its debts, Devonport fell into administration a year later. A report published in March by the administrator, RG Insolvency, lists creditors who had lent money to Devonport. Among them is Christopher Chandler, a New Zealand businessman and founder of Dubai-based investment company Legatum, which funds UK media channel GB News. Chandler declined to comment. Creditors also include HM Revenue and Customs, which is owed more than £788,000. RG Insolvency estimates that, of the £49m owed by Devonport, as little as £11.2m could be recovered. Much will depend on whether administrators can recoup about £13.5m owed by Blue International. Earlier this year, the team behind Blue International completed a $114.5m combination with a US 'blank cheque' investment firm called Perception Capital, and floating the combined entity on the US Nasdaq stock exchange under the Blue Gold name. What comes next is murky at best. Blue Gold's new website outlines ambitious plans to reopen the Bogoso-Prestea mine. But Ghana appears to be sticking by its decision to strip Blue of the lease. The dispute is now the subject of international arbitration, according to a stock market filing by Blue Gold, leaving the mine's future up in the air. In an annual report filed in the US, Blue Gold admits that the leases may never be returned, which would reduce the value of the company's assets from $368m to less than $45m. A section on the company website offers little further clarity, stating: 'Subject to resolving legal dispute with the government of Ghana, first gold pour is expected.' The Guardian approached the Foreign Office to ask if the UK government had intervened on Blue Gold's behalf with ministers in Accra. The department declined to comment. Dannatt and Triesman also declined to comment. Glen said he had not discussed the company's Ghanaian dispute with any UK government department, official or diplomat. On the ground in Ghana,local sources say little has changed, with operations still shut down under a new owner and mineworkers still left unpaid. The uncertainty means that, for everyone from local mineworkers to members of the British establishment, the dream of blue gold remains a mirage, tantalisingly out of reach. The Guardian approached Blue Gold for comment. The company referred the Guardian to its website and shareholder filings but did not address questions directly. Paul Bailey did not return requests for comment. RG Insolvency declined to comment.
BBC News
a day ago
- BBC News
Lagos go experience partial blackout for 25 days
Residents for some parts of Nigeria largest commercial city, Lagos state go experience partial power outage for 25 days, according to di state electricity distribution company. Di Ikeja Electric Plc announce on X say di Transmission Company of Nigeria (TCN) wan carry out repair work on Omotosho – Ikeja West 330kV transmission line, and dat go cause power cuts for di area from Monday, 28 July to 21 August, 2025 According to Ikeja Electric, di maintenance go cause partial power supply across some areas of di state during dis period. Di affected areas wey include Ojodu, Oke-Ira, Agidingbi, Omole Phase 1 & 2, Iju, Berger, Magodo (Phase 1 & 2), some parts of Ketu, Oregun, Ojota, some parts Agege, Ifako, Abule Egba, Ojo, Ikeja, Oshodi, Ayobo, Alimosho, Ogba, Alausa and Ejigbogo. Eko Electricity Distribution Company (EKEDC) also say dia customers go experience irregular power supply sake of di maintenance work TCN wan carry out on di Omotosho – Ikeja West 330kV transmission line from 28 July to 21 August, 2025, but dem no tok dis exact areas wey go dey affected. However, di company operations na for Lagos Island, Victoria Island, Lekki, Apapa, Festac and Surulere. Wetin be di reason for di expected blackout? Di Disco companies explain say di reason for di partial blackout na sake of scheduled maintenance wey di Transmission Company of Nigeria wan do di Omotosho-Ikeja West 330kv powerline, and di maintenance go affect di load shedding across dia networks. Di maintenance go involve upgrade of operations for Omotosho–Ikeja West 330kV transmission area, and dis na one important power transmission channel for Nigeria power grid system. Di line dey serve as key conduit between di Omotosho Power Station for Ondo State and Ikeja West, wey be major power transmission hub for Lagos State. Ikeja Electric and EKEDC don inform residents within dis coverage areas to expect load management measures throughout di maintenance period, wey fit affect residential, commercial, and industrial during working hours. For Lagos residents during di peak hour wen power supply go dey dem go need to schedule dia activities and business around di blackout. Wen and how long di power outage dey expected to last Di electricity distribution company say di maintenance go last for 25 days. E go start on Monday, 28 July and end on 21 August, 2025. Lagos residents go experience di blackout between 8:00am-5:00pm daily. Areas wey go dey affected by di blackout?
Reuters
2 days ago
- Reuters
IMF's board approves $625-million loan deal for Chad
July 25 (Reuters) - The International Monetary Fund's executive board approved Chad's $625-million lending programme for four years, including an immediate disbursement of $38.5 million, the IMF said in a statement on Friday. The program, finalized in May between Central African officials and IMF staff, aims to ensure Chad's fiscal sustainability, create room for development projects, expand targeted social spending to fight poverty, and enhance governance and the business environment to promote private sector growth, the IMF said. That will in turn help with implementing an ambitious national development blueprint that requires $30 billion in public and private investment in sectors such as roads, electricity, and the digital economy. The plan, due to be launched in Abu Dhabi in September, should lead to average annual economic growth of 8% and help keep the debt level at 32% of gross domestic product over the 2025-2030 period, the country's finance minister said in June. Chad, whose junta leader was sworn in after an election last year, has been under pressure from declining oil prices, development assistance cuts, and regional instability. It hosts hundreds of thousands of refugees from Sudan's civil war who live in dire shelter conditions due to funding shortages.
