Africa’s largest bauxite producer cancels 46 mining licenses amid sector reform

Africa’s largest bauxite producer, Guinea, has revoked 46 mining licences in a broad move to tighten state control over its vast mineral resources.

• Guinea revoked 46 mining licences as part of a sector-wide reform to enhance state control over mineral resources.
• The reform aims to address regulatory violations, optimize revenue collection, and ensure alignment with national development goals.
• Guinea accounts for over a quarter of global bauxite supply and saw an 11% rise in bauxite exports in 2023, mostly to China.

The action is part of Guinea’s sweeping sector-wide reform aimed at curbing regulatory violations, boosting revenue collection, and ensuring that mining activities contribute more directly to national development goals.

According to Reuters, government sources say the number of affected permits could be as high as 53, in what analysts interpret as a signal to larger operators that the state is serious about enforcing compliance in the world’s second-largest bauxite-producing country.

This development reflects a broader trend across Africa, where governments are reassessing their control over critical mineral sectors.

In other military-led countries such as Niger, Mali, and Burkina Faso, similar crackdowns on underperforming or non-compliant mining operators have taken place. Ghana has also recently initiated license revocations targeting firms in its mining sector.

While the recent cancellations in Guinea span bauxite, gold, diamond, and graphite operations, officials insist the move primarily targets smaller firms that failed to meet investment obligations or breached operational guidelines.

“These are just small, underperforming licences,” a mining analyst familiar with the situation told Reuters, noting that the market impact should be minimal.

Guinea’s bauxite operations

Guinea is home to the world’s largest reserves of bauxite and accounts for over a quarter of global supply, with major international firms, including Chinese and Russian operators, active in the sector.

Bauxite exports are a cornerstone of Guinea’s economy, generating billions of dollars annually and positioning the nation among Africa’s top mineral exporters.

In 2023, Guinea’s bauxite exports rose by 11% compared to the previous year, with China receiving the largest share. The country ranks alongside Australia, China, and Brazil among the world’s leading bauxite producers, contributing about 28% to global output.

Bauxite is a metallic mineral essential for producing aluminium, which is widely used across industrial and infrastructure sectors.

Analysts say Guinea’s leading bauxite producers are on track to mine more than 200 million tons in 2025—a 35% increase over last year’s record production.

While the cancellations primarily target smaller, underperforming firms, the move signals a broader push by the Guinean government to enforce compliance and realign the sector with national development goals.

“It can be interpreted as a warning to mining companies that the government intends to see projects developed according to agreed terms,” said an adviser at a pan-African consultancy firm.

The licence revocations form part of wider reforms aimed at increasing local beneficiation, strengthening regulatory oversight, and boosting state revenues.

These include encouraging companies to establish alumina refineries domestically rather than exporting raw bauxite, and tightening the rules around licensing and investment obligations.

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