COUNTRY IN FOCUS
contains an estimated 430 million tons of bauxite, and the
mining company aims to produce between six and 10 million
tons of bauxite per annum.
Alufer Mining also completed the development of, and began
production at, their Bel Air project. It is planning to produce
5.5 million tons of bauxite per annum, which will ramp up to
10 million tons per year over a 15-year period. Emirates Global
Aluminium (EGA) is engaged in a USD1.4-billion bauxite project
by subsidiary Guinea Alumina Corporation (GAC) and plans to
begin exports in 2019 and produce 12 million tons annually.
Rusal owns the Kindia Bauxite Company (CBK), which accounts
for a third of Rusal’s bauxite output, as well as the Dian-Dian
Bauxite Company and the Friguia complex, which mines bauxite
and refi nes it into alumina.
Substantial challenges
The Guinean government has been increasing pressure
on companies to implement construction projects for
alumina refi neries in-country – a requirement that comes
with signifi cant technical challenges. The most pressing
being the need to import coal and the environmental
considerations of extracting bauxite in environmentally
sensitive and agriculturally active areas. It would also require
the development of deep-water ports, which would reduce
the dependency on trans-shipment and lowering the cost of
bauxite on an FOB basis.
Staggering mineral wealth
The mineral wealth of Guinea is staggering and spread out
through the country. The northwest is host to the bauxite
deposits, and the northeast to the major gold deposits.
The bauxite deposits contain 40 to 50% aluminium and the
extraction costs are relatively low. All the gold mines in Guinea
to date have been open pit operations, with the Birimian gold
belt that still holds exploration potential. This sector also has
the most skilled labour available. The Birimian rocks host the
high-grade iron ore deposits.
The southeast hinterland contains the high-grade iron ore
deposits with up to 60% iron content. The northern coast
has nickel and the central coast has abundant corundum
deposits, with diamonds found along the southern coastal
area. Alluvial diamonds are the primary source being exploited
now, with the primary kimberlite source that still need to
be located. There are also several other resources gaining
traction, most notably the uranium deposits of Kissidougou-
Kerouane-Mali. Base metals, including nickel, copper, cobalt
and manganese are known in the Kakoulime mountains and
from the Koundara, Boff a and Kissidougou-Faranah areas.
Good indicators have also been found of rare earth elements
in particularly the Macenta-Kissidokugou-Kerouane area.
Recently, graphite was found in Nzerekore.
The main mining challenges remain the shortage of
machinery and skills in the mining sector. The locally sourced
mining staff also complain of relatively low wages and few
job opportunities. The other challenge is the mining sector’s
inability to access domestic fi nance for project sponsors.
Ebola has also recently been highlighted as a potential threat
to the local mining industry. During the Symposium of Mines,
it was also conceded that corruption is still a major problem
in the mining sector. The government has announced its
intent to make instances of misconduct public and to increase
transparency in the mining sector.
Drilling at Simandou. The deposit is one of the largest untapped high-grade iron ore resources in the world.
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African Mining November 2019
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