Guinea signs bauxite mining deal with Nimba Mining, Glencore USD 350 million advance confirmed

Agreement scope and government action

Guinea has signed a new mining convention with state-owned Nimba Mining Company covering the former Guinea Alumina Corporation (GAC) bauxite mine and a planned alumina refinery, according to the Guinean presidency announcement dated August 3 and reported on August 10. The agreement follows the government's withdrawal of the GAC concession after GAC failed to build the alumina refinery it had committed to in return for tax exemptions. Nimba Mining was established in August 2025 to take over the project.

How the new project terms differ from the prior arrangement

Under the new convention, Nimba Mining will develop an alumina refinery but will proceed under Guinea's existing mining code without the tax incentives previously granted to GAC, and the company has said it will comply with all applicable extraction and export taxes. The company plans to appoint an engineering firm by the end of 2026 to carry out feasibility studies for the refinery, with completion targeted for mid-2028 over an expected 18-month study period. Construction will begin only after the feasibility study is completed. Planned production capacity, project cost and construction schedule have not yet been announced.

Glencore financing arrangement

To support the restart of the bauxite operation, Nimba Mining has signed a financing agreement with commodity trader Glencore, which will provide a USD 350 million advance secured against future bauxite production. The funding relates to future bauxite sales and is not a direct investment in the refinery project.

Wider Nimba Mining activity in Guinea

Beyond the bauxite project, Nimba Mining also plans to begin gold exploration in Guinea's Siguiri region through a partnership with Australia's Resolute Mining. The mining agreement will take effect after ratification by Guinea's Parliament and official publication.

Uncertainties and next milestone

Key items not yet disclosed include the planned alumina refinery production capacity, project cost and construction timetable, and the parliamentary ratification timeline. The next verifiable milestone is the planned appointment of an engineering company for the feasibility study by the end of 2026.