The mining industry of Guinea was developed during colonial rule. The minerals extracted consisted of iron, gold, diamond, and bauxite. Guinea ranks first in the world in bauxite reserves and 6th in the extraction of high-grade bauxite, the aluminium ore. The mining industry and exports of mining products accounted for 17% of Guinea's gross domestic product (GDP) in 2010. Mining accounts for over 50% of its exports. The country accounts for 94% of Africa's mining production of bauxite. The large mineral reserve, which has mostly remained untapped, is of immense interest for international firms.
In recent years, the mining industry in Guinea has suffered from controversy, specifically with respect to the iron ore mining industry and the block of mines in Northern Guinea.
In 2019, the country was the world's 3rd largest producer of bauxite.
History
The mining tradition of Guinea is ancient and can be traced to a period before the Middle Ages, when gold and salt were trading commodities between Guinea and Ghana. Following the independence of Guinea from colonial rule, the economy of the country was largely dependent on the mining industry, in spite of political turmoil racking the country since 2011. The 1986 Mining Code was revised in 1995.
In September 2011 the Mining Code was reviewed once more and a new code implemented that took effect in 2012. Changes to the code included increases in state ownership in joint ventures from 15% to 35%.
In 2008, former model, Tigui Camara bought a 28% share in a mining company, and began her career in the sector. She established the Camara Diamond Traiding Network in 2009, and a holding company Tigui Mining Group (TMG) in 2012, and is the first woman in Guinea to own a mining company. In a 2018 interview, Camara discussed how: "... in the USA ... I worked as a model and representative of many jewelry houses. Which led me to ask quite a few questions about the origin of the jewelry, the practices, the impact that mining can have on local communities. The answers I got pushed me to get involved in this sector."
Production and impact
Guinea's bauxite reserve is 7.4 billion metric tons, which is 26.4 percent of global reserves. High-grade iron ore reserves account for more than 4 billion tonnes. Diamond and gold deposits, as well as uranium, have also been reported. The mineral industry has provided job opportunities to 10,000 people. In the export sector, mining has contributed to as much as 90% of earnings from foreign exchange. Guinea now ranks sixth globally in the production of bauxite. Despite holding large mineral resources, Guinea, with more than 12,000,000 people, has a low income level, with the average wage less than one dollar a day.
There are two dozen international companies associated with mining operations in Guinea. The domestic agencies involved with mining are the Association pour la recherche et l'Exploitation du Diamant et de l'Or, Friguia Sal, Siguri Gold, and Société AMIG Mining International SARL.
Commodities
Minerals extracted in the country by private-public joint enterprises in collaboration with the Government of Guinea include bauxite, iron ore, and diamonds. Other resources mined are cement, gold, salt, graphite, limestone, manganese, nickel, and uranium. A major developer in the field of bauxite mining is the Alumina Company of Guinea (ACG-Fria), which is located in Fria; the government of Guinea holds a 49% share while the Reynolds Metals Company holds the 51% balance in this enterprise. Another partner in bauxite mining is Compagnie des Bauxites de Guinée (CBG). It is a joint venture of Alcoa, Rio Tinto, and Dado Mining holding a 51% share, and the Guinean government holding a 49% share. Its exports of bauxite are the largest in the world, reportedly in excess of 13.5 million tonnes in 2008.
Guinea has large reserves of iron ore with high potential for extraction. These largely remains untapped, and its quality grade is more than 60%. Rio Tinto's joint sector enterprise in the iron ore sector is the Simandou mine project, with a value estimated at $6 billion. In 2012, Simandou mine was projected to produce 90 million tons of iron ore annually. The Mount Nimba mine, also in the iron ore sector, is located in the Nzérékoré Region, while the Kalia mine is in the Faranah Region.
Diamond potential is estimated at 40 million carats. In 2012, production was 266,800 carats as per the Kimberley Process Certification Scheme, and it is listed as the 13th-largest producer.