Guinea’s military government has repossessed 51 mining licenses, as part of a push to reclaim claims and concessions where operations either haven’t begun or are underutilized, according to the country’s information minister.
Fana Soumah confirmed on Thursday night that Guinea’s military leader, Mamady Doumbouya, signed a decree for the repossession of the licenses, which span bauxite, gold, diamond, graphite, and iron concessions.
The licenses were “returned free of charge to the state,” Soumah explained, citing legal grounds in Guinea’s mining code as justification for the move.
Guinea is known for its vast bauxite reserves, the largest in the world, which play a crucial role in global aluminum production, particularly in China and Russia. The country’s decision to pull back licenses follows previous efforts to retract bauxite permits from Kebo Energy SA and Emirates Global Aluminium.
“This move adds pressure on Guinea’s bauxite sector,” said Tom Price, head of commodities at investment bank Panmure Liberum. “We suspect the government is consolidating the foreign bauxite mining sector and pushing for increased local investment in downstream processing.”
However, an analyst familiar with Guinea’s mining sector, who requested anonymity, suggested the companies affected by the decree were relatively minor players in the industry.
The decree impacts licenses issued between 2005 and 2023. While some of the permits had already expired, others still had decades left on their validity.
This development underscores a growing trend in West Africa, where military regimes in countries such as Niger, Mali, and Burkina Faso have taken increasing control over mining assets since 2020, aiming to boost national revenues.
