Conakry – The head of Guinea’s junta has revoked an Emirati mining giant’s bauxite concession and placed it under state control, as a number of west Africa’s military governments pressure foreign mining firms over natural resources.
Guinea Alumina Corporation (GAC), a subsidiary of UAE mining giant Emirates Global Aluminium, had operated one of the country’s largest bauxite mines, in the Boke region of northwestern Guinea.
However, on Monday, junta leader General Mamadi Doumbouya said on national television that the GAC mining concession had been withdrawn.
Authorities justified the decision by citing GAC’s “non-compliance” with the country’s mining code, but did not provide further details.
In a statement, GAC said it “strongly denounces” what amounts to “a de facto expropriation”.
“This measure constitutes a flagrant violation of GAC’s contractual and legal rights. It puts over 3,000 local jobs at risk and raises serious concerns about the Republic of Guinea’s adherence to the rule of law,” it said.
Doumbouya said that control of the concession would go to a new public mining firm, Nimba Mining Company, which is being supervised by the Ministry of Mines and Geology.
Since coming to power in a September 2021 coup, Doumbouya has sought greater control over his country’s lucrative mining sector.
Despite Guinea’s abundant natural resources, it remains one of the world’s poorest countries, with the spoils of its extractive industries unequally distributed.
Meanwhile, juntas in Niger, Burkina Faso and Mali have also ramped up pressure on foreign mining companies in recent years.
In June, Niger nationalised the local branch of French uranium giant Orano, while Mali’s military government placed control of Canadian giant Barrick’s enormous Loulo-Gounkoto gold mine under temporary administration.
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Source: AFP