News: POL UPDATE 1-Guinea mining exploration firms seek to reassure investors after coup

(Adds bauxite prices, context on policy perception improvement)

JOHANNESBURG, Sept 7 (Reuters) - Australian-listed bauxite and gold exploration firms Lindian Resources (LIN) and Polymetals Resources (POL) said on Tuesday that their activities in Guinea were unaffected by a coup, and that the new leaders' tone on mining was encouraging.

The overthrow of President Alpha Conde has triggered concerns about supplies of bauxite https://tmsnrt.rs/3l1NSxW, or aluminium ore, from Guinea, the world's second-largest producer, sending prices up even though no disruptions to output or exports have been reported.

Guinea bauxite for delivery to China AM-45GUI-BAUX was priced at $51 a tonne at 0930 GMT on Tuesday, up 1% from Monday and at its highest level since mid-March 2020.

Benchmark aluminium CMAL3 was trading flat at $2,773 a tonne, having hit a 10-year high on Monday.

Companies seeking clues to the new military leaders' stance on mining found comfort in their public pronouncements.

"The military leadership specifically noted the importance of the mining industry to the country's development and is open for business, with a focus on foreign investment," Polymetals' country manager Aguibou Bah said.

The coup leaders' National Committee for Reorientation and Development said on Monday that it would "respect all its obligations related to mining agreements".

Lindian Resources, which has three bauxite projects in Guinea, said it was "encouraged" by these public statements. Polymetals said it was confident the coup would not affect work on its Alahiné or Mansala gold exploration sites.

Guinea has experienced a mining boom over the past decade and some investors are concerned political instability could jeopardise that growth, which coup leaders say has not trickled down to ordinary Guineans.

Mining companies' perception of Guinea's policy framework improved markedly from 2019 to 2020, according to the Fraser Institute's annual survey.

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