Guinea Agrees to Pay EGA to Settle Dispute and Resume Bauxite Trade

West Africa WeeklyMay 8, 20262 Mins read309

Guinea has reached a settlement agreement with Emirates Global Aluminium (EGA) and its local subsidiary Guinea Alumina Corporation (GAC), ending an 18 month dispute that halted bauxite shipments and led to the revocation of GAC’s mining licence, according to a joint statement issued after negotiations supervised by the Paris Bar Association.

Under the terms of the agreement, which are still subject to certain conditions, the Republic of Guinea will pay a lump sum to GAC in exchange for the transfer of its assets to Nimba Mining Company (NMC), a state backed firm that has already resumed mining and exports from the Sangarédi bauxite project.The deal also renews bauxite supply agreements between Compagnie des Bauxites de Guinée (CBG) and EGA under mutually beneficial commercial terms, and covers all disputes related to the interruption of bauxite supplies to EGA.

The dispute began in mid 2024 when Guinean authorities suspended GAC’s exports as part of a broader government push to force bauxite operators to commit to building alumina refineries domestically, rather than exporting raw ore.In July 2025, Guinea terminated the mining agreement and revoked GAC’s licence, transferring the concession to NMC.EGA subsequently terminated its base agreement with the state and recorded a full impairment of GAC’s value, amounting to 2.5 billion UAE dirhams, approximately 680 million dollars.

The disruptions brought EGA’s net profit for 2025 down to 578 million dollars, from 715 million dollars in 2024, mainly because of a 765 million dollars charge from the GAC project.However, the company moved quickly to secure alternative supplies, arranging new bauxite shipments from Australia, Ghana and Brazil, and signed term contracts covering more than 70 percent of its volume needs.

The agreement, aligned with the guiding principles of the Simandou Strategic Committee, is seen as a constructive effort to normalise and strengthen trade relations between Guinea and EGA.For Guinea, the deal ensures continuity of mining operations through NMC, while EGA secures renewed access to Guinean bauxite, a critical raw material for its global aluminium production.

Guinean authorities have reiterated their commitment to economic sovereignty, with a senior official stating that the country welcomes strategic investments that promote sustainable development within the framework of the Simandou 2040 programme.The settlement represents a test of Guinea’s tougher mining rules and refining push, as the government continues to balance resource nationalism with investment stability.

While financial details of the lump sum payment were not disclosed, Guinea still faces multiple ongoing disputes following widespread mining permit withdrawals in 2025.These include a 28.9 billion dollars claim filed by UAE based Axis Minerals with the International Centre for Settlement of Investment Disputes after Guinea revoked its bauxite permit in Boffa, as well as a 100 million dollars claim from Canada’s Falcon Energy Materials related to the cancellation of its graphite project in Lola.