Guinea asks bauxite miners to present local refinery plans by May

Singapore Shipping

09/04/2022 02:02

CONAKRY, April 9 (Reuters) - The interim government of
Guinea, the world's second-largest bauxite producer, on Friday
asked international mining companies to present plans to refine
their bauxite production into alumina within the country by May
2022.
    Africa's biggest producer of the aluminium ore has been
seeking to channel its mineral wealth into economic development,
pressuring companies in recent years to commit to building local
facilities that will refine bauxite into higher value alumina.
    A junta that took power in a military coup in September has
toughened the stance towards multinationals, ordering the
suspension of all activities at a massive iron ore deposit last
month to clarify how Guinea's interests would be preserved.
 urn:newsml:reuters.com:*:nL2N2VE0ES
    The companies concerned by the alumina ultimatum, including
Guinea's top two bauxite producers Societe Miniere de Boke (SMB)
and Compagnie des Bauxite de Guinee (CBG), had all previously
committed to developing local refineries, the interim government
said.
    "The respect of basic agreements remains a non-negotiable
for us," junta leader Mamady Doumbouya said during a hearing
with company representatives broadcast on state television late
on Friday.
    "You and I can no longer continue this fool's game that
perpetuates great inequality in our relations," he added.
    The companies were asked to submit project proposals and a
"precise timetable" for the construction of alumina refineries
to the mines ministry by the end of May.
    "Penalties" will ensue if the deadline is ignored, Doumbouya
said without providing further detail.
    SMB is owned by a consortium including Singapore shipping
company Winning International Group, Shandong Weiqiao - a
subsidiary of the world's top private sector aluminium producer
China Hongqiao  1378.HK  - and Guinea's UMS International.
    CBG is 51%-owned by consortium Halco Mining Inc and
49%-owned by the Guinean government. Rio Tinto  RIO.L  and Alcoa
Corp  AA.N  each hold 45% of Halco, while Dadco Investments
holds the rest.
    he companies did not immediately respond to Reuters requests
for comment outside regular business hours.

 (Reporting by Saliou Samb; Writing by Sofia Christensen;
Editing by Sandra Maler)
 ((Sofia.Christensen@thomsonreuters.com;))