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Guinea’s ruling junta is taking steps to promote processing of minerals in the country to derive more benefits and to create large scale employment. The head of military junta, who rules the country now has given foreign companies until the end of May to submit proposals and a timetable for the construction of bauxite refineries
Guinea’s ruling junta is taking steps to promote processing of minerals in the country to derive more benefits and to create large scale employment. The head of military junta, who rules the country now has given foreign companies until the end of May to submit proposals and a timetable for the construction of bauxite refineries.
Colonel Mamady Doumbouya in a meeting with stakeholders told the industrialists ensure the deadline was complied with before the end of May. All raw materials used in the manufacturing process be produced locally, according to the new restriction.
Explaining the rationale of the decision, the military head said that despite the mining boom in the bauxite sector, Guinea did not get the expected revenues. The junta strongman also warned that foreign companies that violate the refinery construction deadlines will be penalized.
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Guinea has an estimated 7.4 billion tons of bauxite. This is the world’s largest reserves of bauxite. The mineral is used in the manufacture of aluminium, which is essential for the automotive and food industries. China imports about half of its bauxite needs from Guinea. It is not alone bauxite mining that did not give the sufficient returns to the country. Returns from other abundant natural resources such as iron, gold and diamonds are notoriously disproportionate. Insufficient investment, lack of essential infrastructure such as roads, and rampant corruption are factors that have hindered growth, according to experts.
