EGA's Guinea unit hopes for talks as bauxite stockpile nears 2-million tonnes
Emirates Global Aluminium's (EGA) subsidiary in Guinea has accumulated a stockpile of nearly 2-million metric tonnes of bauxite since the suspension of its operations last year, three sources familiar with the matter told Reuters on Tuesday.
EGA, equally owned by Abu Dhabi sovereign wealth fund Mubadala, and Dubai sovereign wealth fund the Investment Corporation of Dubai, operates one of the largest bauxite mines in Guinea through its Guinea Alumina Corporation (GAC) subsidiary.
The standoff with Guinea's government highlights the aggressive push by the military authorities to increase benefits from the country's vast natural resources as the world's largest bauxite producer leverages its position in aluminium supply chains to force downstream processing commitments.
The company has been in a dispute with the government since October last year when its GAC bauxite exports, and mining operations were later suspended by the authorities.
Reuters reported earlier this month that the government has launched a process to withdraw EGA's mining licence over its failure to build an alumina refinery.
Since the suspension of exports and mining operations, its stockpile of bauxite at the port and train loading facility at the mining site, have reached nearly 2-million metric tonnes, the three sources familiar with the situation, told Reuters.
The sources requested anonymity because there were not authorized to speak for the company.
EGA and GAC did not respond to Reuters' requests for comments on the stockpiles.
The company said in a separate statement on Tuesday it hoped to resume talks with the Guinean government that could lead to a lifting of measures blocking its bauxite mining operations.
In its statement, GAC said the measures imposed by the authorities had hampered its operations, leading to their complete stoppage in December 2024 and significant financial losses for the company and its shareholders.
Responding to a Reuters request for comment, Guinea's mines minister Bouna Sylla said the country was committed to working with all investors who fully comply with their contractual commitments, adding they intend to clean up the mining sector.
"This process will continue rigorously, respecting the current legal framework while ensuring the legitimate interests of all stakeholders, including Guinean investors," Sylla said.
Responding to reports that the dispute was due to its failure to fulfil commitments, including building a refinery, GAC said in the statement that it had always fulfilled all of its obligations under agreements Guinea, and contests that it has acted differently.
"As regards an alumina refinery project in Guinea, GAC has repeatedly indicated to the Guinean authorities that the realisation of such a project is contingent upon overcoming numerous and significant economic, technical and environmental challenges," it said.
Mali, Burkina Faso and Niger, also military-led West African states have taken similar routes to assert more control over their mineral-rich mining sectors in a bid to generate higher revenue.
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