Mining

Bauxite: In Guinea, Government Pressure Leads to New Alumina Plant

Bauxite: In Guinea, Government Pressure Leads to New Alumina Plant
Monday, 06 January 2025 15:55

Yearly, Guinea exports over 100 million tons of bauxite. However, the country has only one alumina refinery; alumina is necessary to produce aluminum. Since 2022, the government led by Mamadi Doumbouya has been pressuring mining companies to process bauxite locally.

In December 2024, Guinea signed a deal with China's State Power Investment Corp (SPIC) to build a bauxite-to-alumina plant. The project should be kicked off in March 2025 and be completed by the end of 2027. According to forecasts, it could produce 1.2 million tons of alumina per year. The project reflects the government's push for local processing of bauxite.

Doumbouya, who became president in September 2021 after a coup, has prioritized local processing in the mining sector. Early in his term, he issued an ultimatum to companies to present plans for building refineries in Guinea. Despite being the world's second-largest bauxite producer, Guinea has only one alumina refinery.

Guinea halted bauxite exports from Emirates Global Aluminium to expedite its refinery project in October 2024. Earlier that year, Emirates Global Aluminium had agreed to construct a refinery with a capacity of 1.2 million tons of alumina per year. Regarding the Chinese firm, State Power Investment Corp or SPIC, the Guinean government warned it about losing its mining concession if it does not achieve commercial production by December 2028.

The new refineries could bring significant benefits to Guinea, including increased state revenues and job creation. Also, prices of alumina could surpass bauxite’s tenfold. 

In July 2024, the government announced a partnership with France's Alteo and the United Nations Industrial Development Organization (UNIDO) to help workers gain skills needed in the alumina industry.

However, power could be a major hindrance to these projects as bauxite processing requires substantial energy. A report states that refining one ton of bauxite needs about 3,000 kWh, while mining uses only about 34 kWh per ton.  Meanwhile, less than half the population has access to electricity. 

Fortunately, SPIC's project includes a 250-megawatt power plant, which will provide 100 megawatts to the national grid.

Emiliano Tossou

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