CONAKRY, Mar 27 – Guinea is nearing an agreement with Emirates Global Aluminium (EGA) to resolve a dispute over the government’s seizure of the miner’s local subsidiary, according to sources familiar with the talks.
The deal, which is still being finalised, is expected to avert a potential arbitration case linked to the October takeover of Guinea Alumina Corporation (GAC), EGA’s bauxite unit. The government had transferred GAC’s assets to state-owned Nimba Mining following disagreements over plans to build an alumina refinery.
As discussions progress, attention has shifted to structuring bauxite offtake agreements tied to the seized assets. Traders and alternative buyers are exploring arrangements that could involve upfront payments for future shipments, which would help settle EGA’s compensation claims.
However, negotiations remain complex. A government official confirmed that while an agreement is close, several technical issues are yet to be resolved. In addition, market participants say EGA’s position could still evolve, particularly against the backdrop of geopolitical tensions in the Middle East.
Guinea’s move to take control of the assets reflects a broader push by African governments to secure greater value from mineral resources. Still, the decision has disrupted established bauxite supply chains and introduced new layers of uncertainty for traders.
Interest has centred on spot cargoes ranging between 400,000 and 500,000 metric tons, with some bids reaching up to 600,000 tons. Although larger volumes of up to 1.6 million tons have been discussed, these have yet to be finalised.
Meanwhile, traders remain cautious about committing capital without clear visibility on supply conditions, compliance standards and traceability. Proposed long-term agreements, particularly those requiring bulk prepayments amortised over future deliveries, have also added to the complexity of the negotiations.
