Guniea - Mining and MineralsGuniea-Mining-and-Minerals
Overview
The sector with the most potential is mining. Bauxite, iron ore, gold, and diamond mining represent key markets for Guinea. In 2018, Guinea exported just over USD 2.01 billion of bauxite (50 million tons @ $41/ton) and USD 1.9 billion of gold (50T @ USD 1310 / oz.) The growing trend of bauxite exports continued as the amount of artisanal gold mined doubled from 12 tons in 2016 to 25 tons in 2017.
Leading Sub-Sectors
Bauxite mining is a growth industry, with new companies opening concessions and expanding existing operations. Additionally - and linked to the success of mining developments - road and railroad construction is a potentially lucrative market in the future. However, most recent large road construction contracts went exclusively to politically well-connected Guinean or Chinese construction firms. Guinea holds 35 percent of the world’s bauxite reserves (10-40 billion tons).
Bauxite |
2015 |
2016 |
2017 |
2018 |
Total Local Production |
17,700 |
31,500 |
45,000 |
50,000 |
Total Exports |
596.96 |
882.99 |
1888.40 |
2.010.00 |
Exports to the U.S. |
74.22 |
2.55 |
0 |
0* |
Total Imports |
0 |
0 |
0 |
0 |
Average price of bauxite imported to U.S. |
28 |
28 |
N/A |
N/A |
* U.S. customers recently placed heavier emphasis on importing calcined (processed) rather than crude bauxite, resulting in a significant drop in Guinea’s bauxite exports to the U.S. Thus, in 2016 CBG began shipping most of its product to Australia instead of the United States.
Opportunities
There are opportunities for exporting machinery and equipment to Guinea, particularly in the mining sector. Several mining companies are in the early exploration or construction phases of their contracts and will likely look to make substantial investments in machinery and construction equipment in the upcoming years. Additionally, new hotels, office buildings, and road construction in and around Conakry offer opportunities for machinery and equipment sales.
Web Resources
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http://www.newmont.com (no info on Guinea’s operation)