GUINEA: Strike hits bauxite industry in Guinea, host to more than a third of the world's bauxite deposits, as construction of huge alumina refinery gets under way

In impoverished Guinea, where striking workers are trying to oust President Conte and in the process have brought a halt to work at the country's bauxite mines, a huge multinational is trying to set up a project that will boost the country's crucial mining industry. A road is being built in the tropical forests of Guinea, in west Africa. This tranquil scene masks a discontent that has boiled over this week. On Wednesday (January 17), in the capital Conakry, union members fought police during a week-long general strike aimed at ousting President Lansana Conte. The strike disrupted the country's strategic bauxite production as unions escalated labour action and workers downed tools at the country's main bauxite mine at Sangaredi, north of Conakry. Bauxite and alumina exports are the mainstay of the Guinean economy and the country is the world's biggest shipper of the ore from which aluminium is extracted. But despite this mineral wealth, most of the nearly 10 million population are poor. Here in Sangaredi, bauxite can be seen all around. And a major alumina producer is busy with building operations on a 700 square-kilometre concession. "The project focus is actually to build an alumina refinery. Guinea holds a vast reserve of bauxite, a major chunk of the world reserves and very high grade bauxite with a high content of alumina. So the project was put in place and developed to add value to Guinean bauxite," explains Chris Albert, Construction Manager, of Global Alumina Corp, the company that is building a 2.8 billion US dollar refinery project that will see bauxite supplied by Guinean mines. Guinea has estimated bauxite reserves of more than 25 billion tonnes. To refine bauxite efficiently, the company is having to construct dams and power plants and upgrade infrastructure to export the finished product. The project is key to attracting further investment in the Guinea's mining industry. "If other investors see that we are able to manage a project of this size, among the most important in the world, they will want to follow this trend, " explained Mamady Youla, General Director of Global Alumina Guinea. But the dangers inherent in such a large project are clear. Potential environmental damage to virgin forest and social disruption to a community that has lived largely isolated for decades are all too clear. And with Guinea's stature as the world's most corrupt state as a backdrop, Global Alumina has gone to extremes to show that its corporate practices are clean. The company, as a signatory of the United Nations "Global Compact" has signed an agreement with the United Nations Development Programme (UNDP) agreeing on vocational training, and support for small businesses. In the nearby village of Petoun Djiga, where four-month rains make roads impassable, food is still cooked on iron pots over fires and villagers eke a living from the forest and crops planted in small clearings. Villagers, some of whom have agreed to be relocated, talk both of worry and hope. Company social development officer Misbaou Ba admits that the establishment of such a large concern could have both negative and positive consequences. Guinea contains a third of the world's reserves of bauxite, the raw material for aluminium. Its earth also contains gold, iron ore, diamonds and uranium. Despite that, only 123 million US dollars was generated by the mining sector, which includes major players like Canadian giant Alcan and America's Alcoa, last year. In a country where the vast majority of the people live in dire poverty, just metres above huge riches, the potential for exploitation looms large. But as this week's events in Conakry show, the need to develop the country's rich ore reserves is becoming more and more urgent.

ITN Source | January 18, 2007

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