Guinea to fast-track alumina, iron ore processing

Guinea will fast-track the development of alumina refineries and iron ore pellet plants to end decades of raw ore exports, its mines minister told reporters, as the country prepares for the first shipments from its huge Simandou iron ore mine this week.

In-country alumina and iron ore processing could transform Guinea’s economy by creating industrial jobs and reducing exposure to commodity price swings, the World Bank said in July.

Guinea ships about 60% of its bauxite, a feedstock for aluminium, to China, while a third of iron ore produced by the Simandou mine is destined for Chinese mills.

Conakry has signed its first alumina refinery deal with Chinese state-owned SPIC, with construction underway and completion due by end-2027, said Mines Minister Bouna Sylla.

Talks for additional plants are advanced with Chinalco and France’s Alteo, and ongoing with Compagnie des Bauxites de Guinee and Alcoa, he added.

“We are the biggest bauxite producer in the world now, but we don’t have any refineries built since colonial times,” Sylla said. “That will change.”

Guinea plans up to six refineries by 2030

Guinea joins a raft of mineral-rich African countries from gold producer Mali to oil driller Nigeria that have pushed to boost domestic refining capacity in recent years, a step key to maximising returns, boosting economic growth and reducing costly imports.

The country aims to install five to six alumina refineries by 2030, boosting domestic processing capacity to about 7 million metric tons annually, Sylla said.

The West African nation in August revoked a bauxite concession awarded to a unit of Emirates Global Aluminium after the firm failed to build a promised alumina refinery locally, according to the minister.

China’s alumina projects in Guinea won’t cut its dependence on the country as exports will simply shift to alumina from bauxite, Allison Ju of SMM said.

Guinea’s bauxite, low in silica and suited for low-temperature refining, underpins 25% of global aluminium output.

Guinea also targets iron ore processing

Beyond alumina, Sylla said Guinea is pushing for domestic processing of iron ore.

Current agreements require Rio Tinto and Winning Consortium Simandou, who are jointly developing the Simandou deposit, to study and build a 500,000-ton steel plant or a 2 million-ton pellet facility, Sylla said.

The partners must submit feasibility studies for a steel mill or pellet plant within two years of first exports, said Djiba Diakite, chief of staff to the president.

If they fail, Guinea can hire a top global firm at the expense of Compagnie du Transguineen, the joint venture managing Simandou’s rail and port services – for the study.

“We believe we have identified the minimum capacities to design this facility based on sound economic principles,” Sylla said.