Guinea's bauxite exports to China increased by 38.3% to 38.2 million tonnes last year, marking the second year the West African country beat Australia for the top spot, according to Banchero Costa analyst Chong Hui Ru.
The surge followed extensive Chinese investment in Guinea’s mines and logistics infrastructure.
“The development of bauxite supplies in Guinea continues to look very positive as they continue to increase production aggressively,” Chong said.
- Alufer Mining began production in June 2018 at its Bel Air bauxite mine in Guinea, and is ramping up to 5.5 million tonnes per year. In August 2018, Alufer Mining secured a long-term offtake with China State Power Investment Co (SPIC). The mine will use capesize vessels to ship to SPIC’s alumina refineries.
- Emirates Global Aluminium (EGA) is expecting first bauxite exports from its subsidiary Guinea Alumina Corp (GAC)’s mine in the second half of 2019. When fully ramped up, the mine is expected to produce around 12 million tonnes of bauxite per year. EGA has signed a long-term agreement to supply bauxite to Verdanta’s refinery in India using capesize vessels.
- Aluminum Corp of China (Chalco) started construction work on its Boffa bauxite mine in Guinea in October 2018. The company is looking to start production by the end of 2019. The first phase of the project will produce 12 million tonnes per year of bauxite. Cosco Shipping has been looking at ordering multiple capesizes to fulfil a long-term contract signed with Chalco, to move bauxite from Guinea to China.
- Compagnie des Bauxites de Guinee (CBG) mine completed its expansion project at the end of last year. It is expected to increase bauxite production to 18.5 million tonnes per year, up from 13.5 million tonnes. CBG is jointly owned by the government of Guinea and the Halco Mining consortium, which includes Alcoa, Rio Tinto and Dadco Investments.
The analyst added that the country mined 60 million tonnes of bauxite last year, up from 50 million in 2017.
Societe Miniere de Boke (SMB), which is Guinea's largest exporter, is targeting production of 60 million tonnes on its own this year, she said.
"However, it’s important to note the downside risk from strikes, as SMB lost one to 1.2 million tonnes of bauxite production last year following a nearly two-week strike in May.
“Continued mining project developments in Guinea are also expected to increase bauxite production further this year. The mining projects generally favour capesize vessels for shipping the bauxite to market.”
