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The mining industry of Guinea was developed during colonial rule resulting in improvement of economic situation in the country. The minerals extracted consisted of iron, gold, diamond, and bauxite. Guinea ranks at No. 6 in the world in not only the reserves but also in the extraction of high grade bauxite, the aluminum ore. The country accounts for 94% of Africa’s bauxite. The large mineral resource, which has mostly remained untapped, is of immense interest for international firms' involvement.

History

The mining tradition of Guinea is ancient and is traced to a period before the Middle Ages when gold and salt were trading commodities with Ghana. Following the independence of Guinea from colonial rule, the economy of the country was largely dependent on the mining industry, in spite of political turmoil racking the country since 2011. The 1986 Mining Code was revised in 1995.

Production and impact

Guinea's bauxite reserve is estimated at more than over a billion tonnes (metric tons), which is almost 50% of its world's reserves. High-grade iron ore has reserves of more than 4 billion tonnes. Diamond and gold deposits, and unchartered quantity of uranium are also reported. The mineral industry has provided job opportunities to 10,000 people. In the export sector, mining has contributed to as high as 90% at times in earnings from foreign exchange. It now ranks sixth in global reckoning in the production of bauxite. In spite of holding large mineral resources, the country with nine million people, has a poor record of income level of its people which is reported to be one dollar a day.

There are two dozen international companies associated with mining operations in Guinea. The domestic agencies involved with mining are the Association pour la recherche et l’Exploitation du Diamant et de l’Or, Friguia Sal, Siguri Gold Property, and Societe AMIG Mining International SARL

Commodities

The minerals extracted in the country are, in the order of their mining by private -public joint enterprises in collaboration with the Government of Guinea, relate to bauxite, iron ore, and diamond. Other resources mined are cement, gold, salt, graphite, limestone, manganese, nickel and uranium.

Bauxite

A major developer of in the field of bauxite mining is the Alumina Company of Guinea (ACG-Fria), which is located in Fria, Guinea; Government of Guinea holds 49% share while the Reynolds Metals Company holds the balance 51% in this enterprise.

Another joint venture major in bauxite mining is the Cie des Bauxites de Guinée's (CBG). It is a joint venture of Alcoa, Rio Tinto, and Dado Mining holding 51% share, and the Guinean government holding 49% stakes. Its exports of bauxite are largest in the world, which is reportedly to the extent in excess of 13.5 million tonnes in 2008.

Iron ore

Apart bauxite, Guinea has large reserves of iron ore, which have high potential for extraction, which largely remains untapped, and its quality grade is more than 60%. A joint sector enterprise in this sector is of Rio Tinto and the project known as Simandou iron ore project launched by them is estimated at $6 billion. Simandou is expected to produce 90 million tons of iron ore annually.

Diamond

Diamond potential is estimated at 40 million carats. In 2012, its production was 266,800 carats as per the Kimberley Process Certification Scheme and is listed as the 13th largest producer.

Gold

Guinea's northeastern region has a large number of gold mines and the estimated production in 2011 was 15,695 kilograms.

Outlook

The challenges faced by the mining sector relate to infrastructure such as transportation links and electricity. The financial investment in this sector, still stated to be low compared to other mining rich countries, was US $2.5 billion during period of five years before 2013. However, estimates of its extraction is likely to place it at the fourth place in the world by 2017; as it has a bauxite reserve of 7.4 billion tons.

References

1. ^ Soumah 2009, p. 11.
2. ^ "Guinea bauxite: more protest". Mines and Communities Organization (MAC). 5 November 2005. Retrieved 25 May 2015.
3. ^ Series 2012, p. 2-3. sfn error: no target: CITEREFSeries2012 (help)
4. ^ "Mining in Guinea-Overview". mbendi.com. Retrieved 25 May 2015.
5. Series 2012, p. 17. sfn error: no target: CITEREFSeries2012 (help)
6. Series 2012, p. 23. sfn error: no target: CITEREFSeries2012 (help)
7. Series 2012, p. 12. sfn error: no target: CITEREFSeries2012 (help)
8. "Alumina Company of Guinea". mbendi.com. Retrieved 25 May 2015.
9. "Update 1-Glitch halts Guinea's CBG bauxite exports-sources". reuters.com. Retrieved 25 May 2015.
10. ^ Series 2012, p. 2. sfn error: no target: CITEREFSeries2012 (help)
11. Series 2012, p. 3. sfn error: no target: CITEREFSeries2012 (help)
12. ^ Series 2012, p. 19. sfn error: no target: CITEREFSeries2012 (help)

Bibliography

• "Guinea Country Mining Guide" (pdf). KPMG Global Mining Institute. Retrieved 25 May 2015. {{cite web}}: Invalid |ref=harv (help)
• Soumah, Ibrahima (1 January 2009). The future of Mining Industry in Guinea. Editions L'Harmattan. ISBN 978-2-296-21573-3. {{cite book}}: Invalid |ref=harv (help)