Latest news with #Boké
Yahoo
11-07-2025
- Business
- Yahoo
EGA claims Guinea wrongfully terminated agreement with subsidiary
Emirates Global Aluminium (EGA) has announced that the Republic of Guinea's government has wrongfully terminated a basic agreement signed with its subsidiary, Guinea Alumina Corporation (GAC). This decision has led to the implementation of redundancies in the Boké region that will initially impact more than 2,000 employees and contractors. In June 2024, GAC signed a term sheet with Guinea for the development of an alumina refinery with an initial annual capacity of 1mt. However, in October 2024, the Guinean government initiated actions that hampered its operations in the country, which included blocking EGA and GAC's operations, suspending GAC's bauxite exports and denying access to shared rail infrastructure, leading to the suspension of GAC's mining operations. Despite facing significant economic, technical, and environmental hurdles, GAC made substantial efforts to resume operations and advance the development of the alumina refinery. The government of Guinea reportedly commenced the process to revoke EGA's mining licence in May 2025. EGA and GAC are preparing to defend their rights in international tribunals and seek compensation for the losses incurred. Emirates Global Aluminium CEO Abdulnasser Bin Kalban stated: '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.' GAC, a major investor in Guinea's mining sector for more than four decades, has created 3,200 jobs, with Guinean citizens holding 96% of these positions. The company has generated economic opportunities and substantial revenues for Guinea, including $244m of direct expenditures in 2024 alone. In May 2025, Guinea's military government cancelled 129 exploration permits as part of a broader strategy to consolidate control over mining resources and attract new investments. The state-run Compagnie des Bauxites de Guinée halted all bauxite deliveries to EGA in the United Arab Emirates. This forced EGA to seek alternative sources for bauxite, disrupting their supply chain. "EGA claims Guinea wrongfully terminated agreement with subsidiary" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Arabian Business
10-07-2025
- Business
- Arabian Business
UAE's EGA says wrongful termination of contract by Guinea will cost 2,000 jobs
Emirates Global Aluminium (EGA), which has invested over US$1.4 billion in its business in the Republic of Guinea, said more than 2,000 employees and contractors are on the verge of losing their earnings after the government 'wrongfully declared the termination of the Basic Agreement'. The UAE industrial giant said that the termination of the contract between EGA subsidiary Guinea Alumina Corporation (GAC) with the Republic of Guinea, will 'regrettably impact employment in the Boké region in western Guinea' and that GAC is now proceeding with the necessary process to make significant redundancies. Guinea terminates EGA's mining contract GAC is the largest greenfield investor in Guinea's mining sector in over 40 years and has created 3,200 jobs, 96 per cent of which are held by Guinean citizens. The company has generated new economic opportunities and substantial revenues for the Republic of Guinea, while establishing lasting development partnerships with local communities. In 2024 alone, GAC made approximately US$244 million of direct expenditures in Guinea. In May of this year, Reuters reported that Guinea initiated the process to revoke EGA's mining license in the country following a dispute between the two parties over customs duties. In the Autumn of 2024, the government illegally blocked EGA and GAC's Guinean operations, suspending the export of GAC's bauxite and blocking its access to the rail on shared rail infrastructure. This led to the suspension of GAC's mining operations. GAC and EGA stated that they will defend their rights before the competent international tribunals and seek redress for the losses they have suffered. Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, commented: '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.' In addition, state-controlled Compagnie des Bauxites de Guinée suspended all deliveries of bauxite to EGA in the United Arab Emirates, forcing EGA to source bauxite from other countries. GAC made considerable efforts and concessions to try to unlock its operations and enable the development of an alumina refinery in Guinea to proceed despite the major economic, technical and environmental challenges to completing such a project.
