The climate of Guinea is hot and humid in general, with a monsoon season from June to November. As a result of this tropical climate, Guinea is awash with mineral, agricultural, and hydropower resources. The country held its first free and competitive democratic presidential and legislative elections in 2010 and 2013, respectively, and in October 2015 held a second consecutive presidential election. In April 2013, the government amended its mining code to reduce taxes and royalties
Gold, bauxite, and diamonds are Guinea’s main exports. International investors have shown interest in Guinea’s unexplored mineral reserves, which can propel Guinea’s future growth. Guinea possesses the world’s largest bauxite reserve. The bauxite in Guinea is estimated to be 7.4bnt as of 2020, being the world’s largest reserve, and account for 20% of global output, overtaking China as the world’s second-largest producer of bauxite. Guinea’s bauxite output is forecasted to rise from 90.2mnt in 2020 to 122.8mnt in 2029. However, this expected growth rate has dramatically benefited from Indonesia’s export ban, fully effected from 2014-2016. The drive for growth will be healthy project pipelines and rising aluminium prices. Guinea’s bauxite production will continue to grow for years to come. However, local opposition to mining projects on environmental grounds, as well as political and social instability, to pose downside risks to production growth prospects
However, these companies have only scraped the outer surface of Guinea’s bauxite reserves. Recent years have seen a surge funding to develop new projects to unlock the true potential of this industry. Notably, A joint venture between Global Alumina Corp., SMB Winning is all building a 135-kilometer-long railway that will connect a bauxite mine in Santou with the port of Dapilon, and it is expected to be completed in June 2021.
Gold is another of Guinea’s mining assets available in abundance. The largest mine is in the remote district of Siguiri, owned by AngloGold Ashanti – a South African founded company currently holding the title as the world’s third greatest gold producer. In 2020 gold worth 1.57billion was export from guinea, with India importing $800 million worth.
The country also has rich iron ore reserves. The key iron mines in the country are Simandou South (Zogota) and Simandou North concessions, with production averaging 3.45mm tonnes between 2019 and 2020. The critical Simandou iron ore project located in Guinea – which has been delayed and mired with ownership disputes – will gain traction in the coming year, driven by higher trending iron ore prices in 2020 and 2021.
The diamond reserves of Guinea are also worth noting, with a proven repository of up to 40 million as of 2016, the majority of which are located in the Banankoro-Sefadou area. In 2019 $19 million rough diamond was exported from guinea with Belgium importing up to $9.8million in value
In 2014, Guinea complied with the requirements of the Extractive Industries Transparency Initiative by publishing its mining contracts. Currently, Guinea is negotiating a new IMF program based on Guinea’s new five-year economic plan, focusing on the development of higher value-added products, including from the agro-business sector and the development of the rural economy.
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