By: Ecofin agency

Months after losing control of its bauxite mine in Guinea, Emirates Global Aluminium (EGA) has yet to follow through on its threat of legal action against the state. While talks have since been reported to avoid a court battle, the chances of reaching a settlement remain uncertain.

Options under review to compensate EGA

In July 2025, Guinean authorities revoked EGA’s mining license following a prolonged dispute over the construction of an alumina refinery at the site. The decision, which preceded the transfer of the asset to state-owned Nimba Mining, triggered strong opposition from the Emirati group, which warned it could pursue “any legal action” against Conakry.

In December, Reuters reported that both sides had entered discussions aimed at an out-of-court settlement. One option under consideration involved allowing EGA to continue sourcing bauxite from the mine. While details of this arrangement remain unclear, another approach has recently emerged.

According to an update published on March 26, Guinean authorities are exploring bauxite supply agreements with third-party traders and buyers. These deals could include advance payments that may be used to compensate EGA. No official confirmation has been issued, and while a deal is said to be close, it remains subject to final technical details.

At this stage, EGA’s conditions are not publicly known, including the level of compensation sought for the loss of the mine, once a key asset in its portfolio. The site, considered one of Guinea’s major bauxite operations, had attracted over $1 billion in investment under EGA and was capable of shipping up to 14 million tons annually.

Legal risks already mounting

Guinea, the world’s leading bauxite exporter, has in recent years stepped up efforts to assert greater control over its mining sector. While this policy aims to increase national revenue, it has also led to rising tensions with operators.

Beyond the dispute with EGA, several companies have already launched international arbitration proceedings against the state. Axis Minerals, another Emirati firm affected by a license withdrawal, is seeking $28.9 billion in compensation through a case filed with the International Centre for Settlement of Investment Disputes (ICSID). More recently, Falcon Energy has filed a claim of about $100 million, alleging unlawful expropriation of its Lola graphite project.

These cases are still at early stages, with preliminary procedures ongoing. For Guinea, avoiding a similar escalation with EGA could prove critical, as such disputes can drag on for years and generate significant legal costs for all parties involved.