The head of Guinea’s military junta has revoked an Emirati mining giant’s bauxite concession, placing the lucrative operation under direct state control as part of a wider policy.
General Mamadi Doumbouya announced on national television that the Guinea Alumina Corporation’s mining concession had been officially withdrawn from the company this past Monday.
Authorities justified their unilateral decision by citing GAC’s “non-compliance” with the country’s mining code but provided no further public details regarding the specific violations.
GAC, which is a subsidiary of the UAE mining giant Emirates Global Aluminium, strongly denounced what it described as a de facto expropriation. The company stated this measure constitutes a flagrant violation of its contractual and legal rights, putting over 3,000 local jobs at immediate risk.
The decision also raises serious concerns about the Republic of Guinea’s adherence to the rule of law for foreign companies and international investors.
Control of the former concession will now be delegated to a new public mining firm, Nimba Mining Company, which is supervised by the Ministry of Mines and Geology.
Since coming to power in a September 2021 coup, General Doumbouya has actively sought to gain greater control over his country’s highly 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 distributed unequally. This action is part of a broader trend, as juntas in neighboring Niger, Burkina Faso, and Mali have also ramped up pressure on foreign mining firms.
In a similar move, Niger’s military government nationalized the local branch of French uranium giant Orano back in June of this year. Meanwhile, Mali’s military junta placed control of Canadian giant Barrick’s enormous Loulo-Gounkoto gold mine under a temporary state administration.