The mines minister of Guinea has announced that Nimba will sell bauxite via monthly tenders.

Guinea's?Nimba?Mining Company, a state-owned company, will sell its bauxite in monthly auctions that are open to international traders and miners. The government is trying to turn the company into the national mining champion.

Nimba intends to find a trading partner through an agreement that guarantees minimum annual sales volume, while marketing additional production via monthly spot tenders.

Bouna Sylla, Mines minister, said Bouna in an interview: "Sometime it could be?Mercuria and other times it could be Glencore, Rio Tinto, or Vedanta." "Nimba's goal is to be able to compete on the same basis as international mining firms."

GUINEA TIGHTENS GRAP The move is Guinea's latest attempt to increase the state's participation in an industry dominated by foreign players. President Mamadi doumbouya’s government has tightened oversight over mining projects since taking power in 2021. They have also accelerated the development of Simandou iron-ore project, which had been delayed for years, and encouraged miners to increase their refining capabilities to create value locally. Last August, the government transferred Emirates Global Aluminium assets to Nimba. This was Nimba's first major asset.

Nimba announced last week that it has exported over 5 million metric tonnes of bauxite since its inception. It aims to ship a total of 10 million tons by the end of this year, before reaching a capacity of 12 millions tons per annum from 2027.

L'Huillier stated that Nimba's strategy is modeled after Saudi Arabia's Ma'aden. It has four business divisions, including bauxite and alumina. Gold, too, will be included. In the next two to five year, Nimba aims to produce 14 million tons of Bauxite per annum, build an alumina refinery, develop a gold mine, and bring a base metals project to the bankable feasibility phase.

Nimba has signed a joint-venture agreement with Australia’s Resolute Mining for the exploration of gold opportunities. It is also pursuing alumina refinery projects.

Sylla stated that Nimba would expand its operations by reinvesting the profits it makes from its own business, rather than relying on major projects like Simandou.

The right model for a company is to invest in its assets, make profits and then reinvest them to diversify.

(source: Reuters)