Wedoany.com Report-May 11, Guinea has begun proceedings to revoke the mining licence of Emirates Global Aluminium (EGA), according to two sources familiar with the matter. The decision escalates a dispute over customs duties that started in October 2024, following the suspension of EGA’s bauxite exports and mining operations in the country.

Guinea is the world’s second-largest bauxite producer, trailing only Australia.

EGA, jointly owned by Abu Dhabi’s Mubadala sovereign wealth fund and the Investment Corporation of Dubai, operates in Guinea through its subsidiary, Guinea Alumina Corporation (GAC). Since starting operations in 2019, GAC manages one of Guinea’s largest bauxite mines, covering a 690km² concession area with an estimated 400 million tonnes of bauxite resources. Guinea ranks as the world’s second-largest bauxite producer, behind Australia.

In 2022, EGA exported approximately 14 million tonnes of bauxite from Guinea. However, exports declined from 14.1 million wet metric tonnes in 2023 to 10.8 million wet metric tonnes in 2024 due to the suspension of operations. The Guinean government has formally notified EGA of the licence withdrawal process.

A senior government official, speaking anonymously, stated: “We have initiated the withdrawal of GAC’s mining licence. A notification has been sent to this effect.” EGA responded by affirming its commitment to resolving the issue, noting that it will “work hard to find a resolution with the government to resume our operations.”

The dispute reflects Guinea’s efforts to strengthen oversight of its mineral resources, a trend seen in other resource-rich countries in the region. Guinea, alongside nations like Mali, Niger, and Burkina Faso, has been revising mining regulations and contracts to enhance control over its natural assets. These efforts have included operational suspensions and stricter enforcement of compliance.

EGA’s operations in Guinea are significant for the global bauxite supply chain, supporting aluminium production for various industries. The company’s 2019 entry into the country marked a major investment in Guinea’s mining sector, contributing to local employment and infrastructure development. The ongoing dispute, however, has disrupted these activities, impacting export volumes and operational continuity.

The situation underscores the challenges of balancing resource management with international partnerships. As Guinea seeks to assert greater authority over its bauxite reserves, EGA is focused on negotiations to restore its operations. The outcome of the licence revocation process will likely influence Guinea’s mining sector and its relationships with global investors, while highlighting the importance of sustainable and mutually beneficial resource agreements.