Guinea agrees payout to EGA for bauxite trade to resume
Guinea has reached a settlement with Emirates Global Aluminium to resolve a long-running dispute over the seizure of its local operations and enable the resumption of bauxite shipments, the two said in separate statements on Wednesday.
Under the deal, which remains subject to conditions, Guinea will pay a lump sum to the Abu Dhabi-based miner in exchange for transferring Guinea Alumina Corporation’s assets to the state-owned Nimba Mining Company. Financial details were not disclosed.
Guinea, the world’s top supplier of the aluminum feedstock, seized GAC’s bauxite operations last year after a dispute over plans to build an alumina refinery, and transferred the assets to state-backed Nimba Mining Company, which has since resumed mining and exports on the concession.
Following the halt in exports, EGA sought alternative supplies, including potential sourcing from Ghana.
Reuters previously reported that Conakry and EGA were close to a deal to resolve the standoff and allow bauxite shipments to restart.
The agreement includes Guinea’s payment to GAC in exchange for the asset transfer tied to the Sangarédi bauxite project, and the renewal of bauxite supply agreements between Compagnie des Bauxites de Guinee and EGA under mutually beneficial terms, the statements said.
EGA, jointly owned by Abu Dhabi’s Mubadala Investment Company and the Investment Corporation of Dubai, is the Gulf’s largest aluminum producer and depends on stable bauxite supplies.
Guinea has tightened mining regulations in recent years to secure greater value from its mineral wealth, revoking licences and pushing companies to build local refining capacity.
The agreement aligns with the objectives of the Simandou Strategic Committee, aimed at stabilizing and strengthening commercial partnerships in the mining sector, said the statement.
(By Maxwell Akalaare Adombila and Samb Saliou; Editing by Bate Felix and Louise Heavens)
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