Guinea, the world’s largest producer of bauxite, is weighing the introduction of export quotas for mining companies as early as this month, according to four sources familiar with the matter, as declining global prices for the aluminum raw material and rising shipping costs put pressure on revenues.
The country’s bauxite exports surged by 25% in 2025, with more than 70% destined for China.
However, global bauxite prices have dropped between 20% and 35% from their 2025 peaks following unexpected shutdowns in Guinea, said Tom Price, head of commodities at Panmure Liberum.
Benchmark cargoes from Guinea and Australia were trading at $60 to $70 per metric ton on Monday, Reuters reported.
Two industry sources and one government source said authorities are currently assessing export quotas for individual mining projects, although no final decision has been made and the specifics remain unclear.
A mining executive indicated the proposed measures would likely apply only to large-scale producers. All sources requested anonymity due to the sensitivity of the discussions.
Don’t Miss This:
$23 Billion Simandou Iron Ore Project Poised To Make Guinea Africa’s Second-Largest Mineral Exporter
Guinea supplies more than 40% of the world’s bauxite and has taken an increasingly assertive approach to regulating its mining sector, which also includes significant reserves of iron ore, gold, and lithium.
The country’s mines ministry did not immediately respond to requests for comment. Rising freight costs, partly driven by the conflict involving Iran, are further tightening margins for producers, according to Patrice L’Huillier, chief executive of Guinea’s state-owned Nimba Mining.
Across Africa, governments are increasingly adopting stricter measures to capture greater value from natural resources, including export restrictions, higher royalties, and requirements for domestic processing.
Price cautioned that efforts to support prices through export controls could have unintended consequences. “Guinea’s export bans of 2024 should give investors an idea of where prices can go, if this same government now decides to control exports via quotas,” he said.
He added that such quotas could signal supply risk and potentially weaken long-term demand.
Don’t Miss This:
Guinea Cancels Emirates Global Aluminium Concession, Hands Over Assets To New State-Backed Company
Image Credit: Reuters
