Guinea, Emirates Global Aluminium near deal to resolve asset dispute

DAKAR, March 27 (Reuters): Guinea has reached an agreement with Emirates Global Aluminium (EGA) that will avert a looming arbitration over last year's seizure of the miner's local unit, three people with knowledge of the matter have told Reuters.

As part of the broader resolution, traders and alternative offtakers have been exploring bauxite offtake deals linked to the seized assets, including structures that would use upfront prepayments on future shipments to help settle EGA's claims, according to traders and government officials.

The deal, which is still being finalised, follows the government's October takeover of Guinea Alumina Corporation (GAC), EGA's bauxite subsidiary, over an alumina refinery row.

It subsequent transferred GAC's assets to stateowned Nimba Mining and discussed potential bauxite supplies to EGA, Reuters previously reported. A government official confirmed the deal was close but said several technical details remained unresolved.

A mining consultant familiar with the matter said the deal could still change, as EGA's priorities may be under review amid the war in the Middle East. EGA declined to comment while Nimba and Guinea's mines ministry did not immediately respond to requests for comment.

Two traders said the offtake talks were complex, with traders cautious about committing capital without full visibility over supply chains and compliance standards.