Guinea is putting pressure on foreign mining firms to increase revenues from its bauxite and iron ore resources. This is no exception for Chinese companies as well. Around half of China’s bauxite imports are from Guinea.
Guinea President Mamady Doumbouya said in a meeting with stakeholders in Conakry on Apr 10, ‘Despite the mining boom in the bauxite sector; we have to admit that the expected revenues are below expectations.’
Doumbouya has given the companies until May to submit proposals and a timetable for constructing bauxite refineries. He also said to share revenues with the country equally.
SCMP reported that 60% of China’s iron ore imports are dependent on Australian supplies.
Many recent issues had put China’s deals under strain. The price of commodities in Australia went up due to sanctions on Russia; Australia’s move for calling for an investigation on the coronavirus origin and banning Chinese company Huawei Technologies Co. from its 5G network.
As reported by SCMP In 2019, a China-backed consortium won a 15 billion dollar contract to develop iron ore in Guinea.
China sees the iron ore mine in the Simandou site as a potential source to help reduce its reliance on Australian supplies.
W. Gyude Moore, a senior policy fellow with the Center for Global Development, said “I think the Chinese will find a workaround in Guinea.”