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China’s State Power Investment Corporation (SPIC) is set to begin the construction of Guinea’s largest alumina processing plant in 2025, marking a significant development for the country’s mining sector. This plant is poised to produce 1.2 million tons of alumina annually once completed by the end of 2027, according to a statement from the presidency. SPIC, which has been active in Guinea’s bauxite industry for the past three years, will begin construction in March 2025. The alumina refinery, when operational, will be the largest of its kind in the country, surpassing the existing United Company Rusal Friguia refinery, which currently produces around 600,000 tons per year. This new plant will play a key role in Guineas efforts to add value to its abundant bauxite resources, boosting economic growth and fostering industrial development. In addition to the alumina refinery, SPIC will also build a 250-megawatt power plant. Of the power generated, 100 megawatts will be supplied to Guinea’s national grid, addressing ongoing energy challenges and supporting the countrys broader infrastructure needs. In 2023, SPIC exported 3.14 million tons of bauxite, underlining its strong presence in the West African country’s mining sector. The development of the alumina processing plant comes as part of Guineas military government’s push to encourage mining companies to establish local processing facilities. This policy is designed to increase value-added production within the country, rather than exporting raw materials. Guinea is the world’s largest exporter of bauxite, the primary ore used to produce alumina, which in turn is a critical input for aluminum production. The Guinean government’s focus on increasing local processing capacity is also reflected in its recent actions against foreign mining companies. In November 2024, the government blocked bauxite shipments from Emirates Global Aluminum (EGA) until the company accelerated its refinery project in the country. This reflects the government’s determination to see more value-added processing taking place on-site rather than relying solely on raw material exports. However, the government has set strict timelines for SPIC, warning that the company could lose its mining concession if it fails to achieve commercial production by December 2028. This deadline underscores the governments commitment to ensuring that mining companies contribute to the countrys economic development beyond just raw material exports. The agreement between SPIC and Guineas military-led government signals growing cooperation between China and Guinea in the mining sector, further cementing China’s influence in the regions natural resource industries. |
