Guinea gives exclusive rights to its most precious mineral to the world’s largest mining company

This information was disclosed by the country’s Minister of Mines and Geology, Bouna Sylla, during an interview in the capital, Conakry.

According to the minister, the move is intended to enable the West African nation to achieve greater direct involvement in the aluminium ore supply chain.

“Talks to finalize the terms of the contract are ongoing,” Sylla said.

While Nimba Mining Co. is a wholly state-owned company, “the aim is to turn it into a mining champion,” the minister said, as seen on Bloomberg.

Furthermore, according to Sylla, Nimba Mining Co is branching out into other ventures, including the refinement of iron ore, gold, and metals.

According to Sylla, Resolute Mining Ltd. and one of the ventures, Nimba Gold, have executed a memorandum of intent to collaborate on gold prospects.

The additional operations of the new enterprise will be introduced progressively, commencing with exploration and advancing to production.

Following a dispute regarding the construction of an alumina refinery, Guinea Alumina Corp., a subsidiary of Dubai-based Emirates Global Aluminum, forfeited its bauxite mining concession to Nimba Mining Co. in August of last year.

The Mines minister noted that the company has shipped 4 million tons of bauxite this year and intends to scale that volume to between 8 and 10 million tons for the full year, before reaching 12 million tons in 2027.

Last year, Guinea, which currently holds the distinction of the world’s largest bauxite producer, managed to produce 183 million tons of the clay-like sedimentary rock, most of which was shipped to China.

This supply line has created some skepticism with Guinea’s government, which does not want such exclusivity to lead to a slump.

As a result, the West African country, a few months back, held a meeting with miners to determine how to diversify its bauxite supply chain, leading to its current decision.