Guinea mining exploration firms seek to reassure investors after coup (updated)

Lindian Resources

07/09/2021 11:08

(Adds bauxite prices, context on policy perception improvement)
    JOHANNESBURG, Sept 7 (Reuters) - Australian-listed bauxite
and gold exploration firms Lindian Resources  LIN.AX  and
Polymetals Resources  POL.AX  said on Tuesday that their
activities in Guinea were unaffected by a coup, and that the new
leaders' tone on mining was encouraging.
    The overthrow of President Alpha Conde has triggered
concerns about supplies of bauxite https://tmsnrt.rs/3l1NSxW, or
aluminium ore, from Guinea, the world's second-largest producer,
sending prices up even though no disruptions to output or
exports have been reported. 
    Guinea bauxite for delivery to China  AM-45GUI-BAUX  was
priced at $51 a tonne at 0930 GMT on Tuesday, up 1% from Monday
and at its highest level since mid-March 2020. 
    Benchmark aluminium  CMAL3  was trading flat at $2,773 a
tonne, having hit a 10-year high on Monday.  urn:newsml:reuters.com:*:nL1N2Q907T
 urn:newsml:reuters.com:*:nL1N2Q80G5  urn:newsml:reuters.com:*:nL1N2Q80NF
    Companies seeking clues to the new military leaders' stance
on mining found comfort in their public pronouncements.
 urn:newsml:reuters.com:*:nL1N2Q80IX
    "The military leadership specifically noted the importance
of the mining industry to the country's development and is open
for business, with a focus on foreign investment," Polymetals'
country manager Aguibou Bah said. 
    The coup leaders' National Committee for Reorientation and
Development said on Monday that it would "respect all its
obligations related to mining agreements". 
    Lindian Resources, which has three bauxite projects in
Guinea, said it was "encouraged" by these public statements.
Polymetals said it was confident the coup would not affect work
on its Alahiné or Mansala gold exploration sites.
    Guinea has experienced a mining boom over the past decade
and some investors are concerned political instability could
jeopardise that growth, which coup leaders say has not trickled
down to ordinary Guineans.
    Mining companies' perception of Guinea's policy framework
improved markedly from 2019 to 2020, according to the Fraser
Institute's annual survey. 


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Guinea's bauxite production and exports    https://tmsnrt.rs/3h6oLJs
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 (Reporting by Helen Reid; Additional reporting by Tom Daly;
Editing by Kevin Liffey and Philippa Fletcher)
 ((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))