Guinea Repossess 51 Mining Licenses! Aluminum Prices Hit Limit Up!

According to media reports, the Guinean government has announced the repossession of 51 mining licenses, covering bauxite, gold, diamonds, graphite, and iron ore. Some analysts view this as a warning from the world’s second-largest bauxite producer to major operators.

On the night of Thursday, May 15, local time, Guinea’s Minister of Information, Fana Soumah, stated in a televised address that President Mamady Doumbouya had signed a decree to revoke these mining concessions. The revoked licenses include those for bauxite, gold, diamonds, graphite, and iron ore. Soumah added that these concessions have been “returned to the state free of charge,” citing multiple articles of Guinea’s mining law as the legal basis for the revocations.

Guinea is the world’s second-largest bauxite producer and holds the largest bauxite reserves globally, making it critical to global industrial metal production, especially for countries like China and Russia. Following the announcement, the main alumina futures contract on the Shanghai Futures Exchange hit the daily price limit, surging 7% to a high of 3,149 yuan/ton.

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