The military coup in Guinea ousting its President Apha Conde, has already left the world worried. The country, located in west Africa, is the second largest producer of bauxite in the world.
The political instability in the country has already led to a surge in aluminum prices – they are currently at a 10 year high. Besides, there is fear of an imminent disruption in the supply chain. China tops the list of bauxite importers for Guinea. It sources about 55 per cent of its total bauxite imports from Guinea.
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According to S&P Global, since China-backed Societe Miniere de Boke (SMB) began development in 2015, Guinea's bauxite exports have increased, with other Chinese companies having also moved in. UAE's Emirates Global Aluminium and Russia's Rusal have also invested significantly.
Rusal, the integrated mining company with interests in bauxite, alumina and aluminium owns the Kindia Bauxite Company (CBK), which accounts for a third of Rusal’s bauxite output, as well as the Dian-Dian Bauxite Company and the Friguia complex, which mines bauxite and refines it into alumina, said Al Circle.
However, for India too, the surge in prices would be a cause for worry. India, despite having the fifth largest bauxite reserves in the world, continues to import this key ingredient.
This financial year, India’s imports of bauxite have already exceeded $51.97 million or Rs 390 crore. The surge in prices therefore will leave Indian policymakers unhappy.
Energy Capital & Power, an Africa-focused investment platform for the energy sector, noted that during 2020, Guinea exported over 82.4 million tons of bauxite, making it one of the worlds’ single largest exporters.
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Aluminium is a key metal required by various industries including construction, automobile and packaging. Besides, it is also used extensively for making utensils, watches, doors, windows and wires among other things.
Guinea is also home to large deposits of diamond and gold.
