Guinea has cancelled the bauxite mining concession previously granted to a subsidiary of Emirates Global Aluminium (EGA) and transferred it to a newly established state-backed company, citing breaches of the country’s mining code.
The move intensifies an ongoing dispute over the development of an alumina refinery in Guinea, the world’s second-largest bauxite producer, and reflects a growing trend among West Africa’s military-led governments to assert greater control over strategic mineral resources, Reuters reported.
EGA, based in Dubai, operates in Guinea through its Guinea Alumina Corporation (GAC), which holds a 690-square-kilometre concession containing approximately 400 million tons of bauxite reserves.
According to a decree announced late Monday, GAC failed to comply with regulations requiring mining companies to submit refinery construction plans.
As a result, the government revoked the concession and reassigned it to Nimba Mining SA, a newly created firm backed by the Guinean state, “free of charge and without any compensation.”
In a statement issued Tuesday, EGA called the decision “a flagrant violation” of GAC’s legal and contractual rights.
“GAC will seek the redress it is entitled to through the legal means it has already initiated and any other legal action,” said the company, which is owned by the sovereign wealth funds of Abu Dhabi and Dubai.
EGA began operations in Guinea in 2019 and has been in conflict with the Guinean government since October last year, when authorities suspended its mining operations and bauxite exports.
Bauxite is the primary raw material used to produce aluminium. EGA said in July it would pursue legal remedies through international tribunals.
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GAC supplies about 2–3% of the world’s bauxite. Despite earlier disruptions that unsettled the market, the rapid handover of operations to Nimba Mining SA may ease short-term concerns over global supply, according to Tom Price, head of commodities at Panmure Liberum investment bank.
“It also signals Guinea’s intent to capture more value by advancing domestic refining capacity,” he said.
Guinea’s bauxite exports rose by 36% year-on-year in the first half of 2025, reaching a record 99.8 million tons, even under tighter regulations.
However, analysts warn that the combined impact of stricter policies and seasonal disruptions from heavy rains could affect output in the second half of the year.
In addition to pushing companies to develop local refining capabilities, Guinea is reviewing inactive or non-compliant mining licences to boost revenues and attract new investors.
“This (decree) opens the door for the Guinean state to unlock synergies between GAC’s assets and those of CBG, where it holds a 49% stake,” said Bernabe Sanchez, a Conakry-based independent mineral economist, referring to the Guinea Bauxite Company.
Elsewhere in the region, military governments are also tightening their grip on natural resources to capitalise on rising commodity prices, particularly gold.
Mali has temporarily placed Barrick Mining’s Loulo-Gounkoto gold complex under state control, while Niger and Burkina Faso are seeking better terms from foreign companies operating within their borders.
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