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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 6th in the world not only in bauxite reserves but also in the extraction of high grade bauxite, the aluminum ore. The country accounts for 94% of Africa’s mining of bauxite. The large mineral resource, which has mostly remained untapped, is of immense interest for international firms.

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. Revision of the 1986 Mining Code was done in 1995.

Production and impact

Guinea's bauxite reserve is estimated at more than a billion tonnes (metric tons), which is almost 50% of the world's reserves. High-grade iron ore reserves account for more than 4 billion tonnes. Diamond and gold deposits, and uranium have also been reported. The mineral industry has provided job opportunities to 10,000 people. In the export sector, mining has contributed to as high as 90% in earnings from foreign exchange. It now ranks sixth in global standing in the production of bauxite. In spite of holding large mineral resources, the country with 9,000,000 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

Minerals extracted in the country by private-public joint enterprises in collaboration with the Government of Guinea include bauxite, iron ore, and diamond. Other resources mined are cement, gold, salt, graphite, limestone, manganese, nickel and uranium. A major developer in the field of bauxite mining is the Alumina Company of Guinea (ACG-Fria), which is located in Fria; the Government of Guinea holds a 49% share while the Reynolds Metals Company holds the balance 51% in this enterprise. Another partner in bauxite mining is 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 the largest in the world, which is reportedly in excess of 13.5 million tonnes in 2008.

Guinea has large reserves of iron ore, which have high potential for extraction. It largely remains untapped, and its quality grade is more than 60%. Rio Tinto's joint sector enterprise in the iron ore sector is the Simandou mine project, with a value estimated at $6 billion. In 2012, Simandou mine was projected to produce 90 million tons of iron ore annually. The Mount Nimba mine, also in the iron ore sector, is located in Nzérékoré Region, while the Kalia mine is in the Faranah Region.

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. Guinea's northeastern region has a large number of gold mines and the estimated production in 2011 was 15,695 kilograms. One of the country's largest gold mines is the Lefa in Faranah Region.

References

1. ^ Soumah 2009, p. 11.
2. ^ "Guinea bauxite: more protest". Mines and Communities Organization (MAC). 5 November 2005. Retrieved 25 May 2015.
3. ^ KPMG Global Mining Institute 2014, p. 2-3.
4. ^ "Mining in Guinea-Overview". mbendi.com. Retrieved 25 May 2015.
5. KPMG Global Mining Institute 2014, p. 17.
6. KPMG Global Mining Institute 2014, p. 23.
7. KPMG Global Mining Institute 2014, p. 12.
8. "Alumina Company of Guinea". mbendi.com. Retrieved 25 May 2015.
9. "Update 1-Glitch halts Guinea's CBG bauxite exports-sources". Reuters. Retrieved 25 May 2015.
10. KPMG Global Mining Institute 2014, p. 2.
11. KPMG Global Mining Institute 2014, p. 3.
12. ^ "Tata suspends work on Mt Nimba". minesandcommunities.org. 2010. Cite error: The named reference "muncelu" was defined multiple times with different content (see the help page).
13. ^ KPMG Global Mining Institute 2014, p. 19.
14. "Lefa Gold Project". nordgold.com. 2013.

Bibliography

• KPMG Global Mining Institute (2014). "Guinea: Country Mining Guide" (pdf). Strategy Series. KPMG International. 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)

• Mining in Guinea
• Economy of Guinea