Guinea to cancel Emirates Global Aluminium’s bauxite mining licence

Guinea has commenced the process to revoke Emirates Global Aluminium’s (EGA) mining licence successful the country, reported Reuters, citing 2 radical acquainted with the matter.

This enactment intensifies an ongoing quality betwixt EGA and the Guinean Government concerning customs duties that began successful October 2024, and follows a suspension of the company’s bauxite exports and mining activities.

EGA is jointly owned by Mubadala, a sovereign wealthiness money based successful Abu Dhabi, and the Investment Corporation of Dubai.

The company, which commenced operations successful Guinea successful 2019, operates done its subsidiary Guinea Alumina Corporation (GAC), which is liable for 1 of the largest bauxite mines successful the country.

Guinea is the world's second-largest bauxite producer, trailing lone Australia.

EGA's operations successful the state encompass a 690km² concession area, which contains an estimated 400 cardinal tonnes (mt) of bauxite mineral resources. The institution exported astir 14mt of bauxite successful 2022.

The suspension of EGA’s Guinean operations has led to a noticeable diminution successful exports, which dropped from 14.1 cardinal bedewed metric tonnes successful 2023 to 10.8 cardinal bedewed metric tonnes successful 2024.

The Guinean Government had issued a notification to EGA regarding the licence withdrawal.

A elder authorities official, who chose to stay anonymous, confirmed to Reuters: "We person initiated the withdrawal of GAC's mining licence. A notification has been sent to this effect."

In effect to the situation, EGA stated that it volition proceed to “work hard to find a solution with the authorities to resume our operations", the study said.

The determination to suspend EGA’s licence reflects broader efforts by resource-rich countries successful the portion to asseverate power implicit their mineral resources.

Countries specified arsenic Guinea, Mali, Niger and Burkina Faso, led by subject governments, person been actively revising mining laws and contracts.

They person besides been known to detain mining executives, halt operations and confiscate products successful a bid for greater control.

"Guinea to cancel Emirates Global Aluminium’s bauxite mining licence " was primitively created and published by Mining Technology, a GlobalData owned brand.

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