Guinea has reached an agreement with Emirates Global Aluminium (EGA) that will avert a looming arbitration over last year’s seizure of the miner’s local unit, three people with knowledge of the matter have told Reuters.
As part of the broader resolution, traders and alternative offtakers have been exploring bauxite offtake deals linked to the seized assets, including structures that would use upfront prepayments on future shipments to help settle EGA’s claims, according to traders and government officials.
The deal, which is still being finalized, follows the government’s October takeover of Guinea Alumina Corporation (GAC), EGA’s bauxite subsidiary, over an alumina refinery row.
It subsequent transferred GAC’s assets to state‑owned Nimba Mining and discussed potential bauxite supplies to EGA, Reuters previously reported.
Deal close, technical details remain
A government official confirmed the deal was close but said several technical details remained unresolved.
A mining consultant familiar with the matter said the deal could still change, as EGA’s priorities may be under review amid the war in the Middle East.
EGA declined to comment while Nimba and Guinea’s mines ministry did not immediately respond to requests for comment.
Two traders said the offtake talks were complex, with traders cautious about committing capital without full visibility over supply chains and compliance standards.
The sources requested anonymity due to the sensitivity of the discussions.
Guinea wants upfront payment
Guinea’s takeover, part of African governments’ broader drive to earn more from their mineral resources, disrupted bauxite supply chains.
One trading source said interest focused on spot cargoes of about 400,000 to 500,000 metric tons, with bids for up to 600,000 tons. Larger volumes of up to 1.6 million tons were discussed but not secured, the source said.
“We need to see the assets and ensure the material is traceable, including assurances on labour standards,” the source said.
Negotiations for a long-term offtake contract have been complicated by the government’s efforts to secure upfront prepayments to compensate EGA, a structure traders are cautious about, according to a trading source.
The arrangement would require a new offtaker to make bulk payment that would be amortized over future bauxite deliveries.
The two traders said Nimba Mining has held talks with several major trading houses.
(By Maxwell Akalaare Adombila; Editing by Bernadette Baum)
