Guinea aims to pull EGA's licence over alumina refinery row, sources say

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Guinea says EGA failed to build alumina refinery

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Dispute escalated following suspension of EGA's exports

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Guinea government wants companies to build refineries

CONAKRY, - The Guinean government's move to revoke Emirates Global Aluminium's mining license stemmed from the company's failure to fulfil its commitment to construct an alumina refinery, people familiar with the matter have told Reuters.

Reuters reported on Wednesday that Guinea has launched a process to revoke the EGA licence, escalating a dispute that began in October with the suspension of the Emirati company's bauxite exports and mining operations.

The move by Guinea, the world's second-largest bauxite exporter, threatens to further disrupt global aluminium supply chains and signals the resource-rich country's hardening stance toward foreign miners as the junta that seized power in September 2021 pushes for more local processing of minerals.

"The Guinean government's action was taken following EGA's failure to keep its promise to build an alumina refinery," a source close to the situation said, requesting anonymity because they were not authorized to speak.

A second source within Guinea's Ministry of Mines told Reuters that officials had sent a final reminder letter to EGA regarding its refinery commitments, but the company did not respond.

A key point of the letter revolved around financing for the refinery, the source said.

Emirates Global Aluminium, equally owned by Abu Dhabi sovereign wealth fund Mubadala, and Dubai sovereign wealth fund, the Investment Corporation of Dubai, began operating in Guinea in 2019 through its Guinea Aluminium Corporation subsidiary, and exported around 14 million metric tons of bauxite in 2022.

In May 2022, the government extended a deadline for bauxite miners to present their refinery plans, and signed a non-binding agreement with EGA's local subsidiary in June 2024 for a 2 million metric ton capacity refinery to be constructed by September 2026.

The company was forced to declare force majeure after its bauxite exports were suspended in October last year, ultimately putting hundreds of employees on furlough, according to sources and a company contracted to carry out mining operations.

The company said in a statement to Reuters on Wednesday that it was working with Guinea to reach a resolution and resume operations.

This article was generated from an automated news agency feed without modifications to text.