BAUXITE PRICE RISES AFTER GUINEA COUP

Guinea coup rattles iron ore and bauxite markets, stokes economic uncertaintyPUBLISHED TUE, SEP 7 20216:37 AM EDTUPDATED TUE, SEP 7 20219:24 AM EDTElliot Smith@ELLIOTSMITHCNBC
https://www.cnbc.com/2021/09/07/guinea-coup-rattles-iron-ore-and-bauxite-markets-stokes-economic-uncertainty.html

KEY POINTSThe coup, carried out by an elite special forces unit led by 41-year-old Col. Mamady Doumbouya, is the latest in a series of power grabs in the region over the past year.Guinea’s 110-kilometer Simandou range hosts one of the largest untapped iron ore deposits in the world.

Guinea has the world’s largest reserves of bauxite, the globe’s main source of aluminum. Prices of aluminum spiked to a 10-year high Monday on the London Metal Exchange.
A military junta claimed to have seized control in the West African country of Guinea and detained President Alpha Conde, casting uncertainty over key bauxite and iron ore supplies.
The coup, carried out on Sunday by an elite special forces unit led by 41-year-old Col. Mamady Doumbouya, is the latest in a series of power grabs in the region over the past year, including in nearby Mali and Chad.

Iron oreGuinea’s 110-kilometer Simandou range hosts one of the largest untapped iron ore deposits in the world, containing more than 8.6 billion tons of ore with an average 65% iron content, according to the country’s National Institute of Statistics.
Simandou is situated in the remote southeastern interior of the country, a vast distance from Conakry and the western coastline that must be reached to access the global seaborne market for iron ore.
The Simandou project has been somewhat stagnant since its discovery in the 1990s as a result of political uncertainty, disputes over mining rights and cost concerns.
BauxiteGuinea has the world’s largest reserves of bauxite, the globe’s main source of aluminum.

Prices of aluminum spiked to a 10-year high Monday on the London Metal Exchange amid fears of global supply disruption.
“For the country’s booming mining sector, the situation could not come at a worse time.
Miners now have little other option than to sit tight and await further clarity from the transitional authorities, but contract renegotiation or even expropriation cannot be discounted,” said Eric Humphery-Smith, Africa analyst at risk intelligence company Verisk Maplecroft.
“The upshot will be major supply disruption for the global bauxite market, as operations will likely remain shuttered for the coming days and potentially weeks.”

The Kremlin on Tuesday said it hoped the coup would not harm Russian business interests in Guinea, according to Reuters.
Russian aluminum giant Rusal has vowed to maintain its three bauxite mines and one alumina refinery in the country despite the political upheaval.
‘Two steps backwards’
The coup has brought down the curtain on almost a decade of political stability in Guinea.
Humphery-Smith said it will likely embolden officer corps throughout the region, meaning that “neither democrats nor autocrats will sleep easy.”

The centralized transitional authority will be ill-equipped to respond to localized grievances, he suggested, potentially escalating political and social unrest when elections are eventually scheduled.
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Guinea's biggest bauxite mines, such as the Sangaredi mine that is partly owned by Rio and Alumina Limited, is about 130 kilometres from coastal ports and has expanded production over the past five years with the benefit of existing railways that were built in the 1970s.3 Sept 2020-----------------------------------------------------------------------------------------------------------CBG Bauxite (Aluminium Ore) Mining OperationsThe largest single producer of bauxite (aluminium ore) in the world, Cie des Bauxites de Guinée's (CBG) operation
https://www.mining-technology.com/projects/cbg-bauxite/