Date: 29 August 2019 , 19:20
News ID: 6277
NEWS SERVICE: Non-Ferrous

Russia concentrates on Guinea bauxite sector to rekindle its economic and diplomatic ties with the country

Russia has been trying to rekindle Soviet-era relationships with governments across the African continent and build new ties. While China is dominating as an economic power in the African continent spreading its investment in the mining and infrastructure sector, Russia is building up its own role in the continent, currently focusing on relationships with Guinea. After the worsening of Russia’s economic ties with the U.S. due to sanctions, the country is looking at other markets and investment opportunities.
Russia concentrates on Guinea bauxite sector to rekindle its economic and diplomatic ties with the country

The Russian ambassador to Guinea Alexander Bregadze, who had backed the current president Alpha Condé for the countries betterment, now joined as the head for Rusal’s key unit in Guinea, home to its biggest mining interests.  Russia’s economic interest in Guinea is evident from the support it offers to the Russian oligarchy with business interests in the country.

Russia’s interests in Guinea have mostly been in mining. Guinea gets around a third of its revenues from the mining sector. Rusal, the integrated mining company with interests in bauxite, alumina and aluminium owns the Kindia Bauxite Company (CBK), which accounts for a third of Rusal’s bauxite output, as well as the Dian-Dian Bauxite Company and the Friguia complex, which mines bauxite and refines it into alumina.

Russia has been criticised by various supportive organizations in Guinea as having unfair benefits. “The Russians have a special status in Guinea. That explains the advantages given to their mining companies,” said Amadou Bah, the executive director of Action Mines, a charity that monitors Guinea’s mining industry.

Rusal whose mining agreements were due to expire were extended under the old terms for another 25 years. CBK’s, for instance, was extended to 2050. However, Russia is not the only foreign power with interests in Guinea. China signed a US$20bn infrastructure-for-minerals deal in 2017, under which three Chinese companies got bauxite concessions.

It cannot be denied that Guinea needs foreign investments to develop its infrastructure and mining sector. As for the bauxite sector is concerned Russia and China remain the most viable choices because of their long term experience in the value chain.

source: Alcircle
Russia Bauxite economic diplomatic African
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