Protests in Guinea heating up

The latest round of riots in Guinea has intensified to the point where bauxite production could be threatened.

The West-African country with a population of 10 million endured two popular strikes in 2006, but the current one — which has raged on for six days is being called the most serious.

“I think this strike will be stronger and hungrier,” says James Gillis, president and chief executive of Cassidy Gold (CDY-V) a junior exploration company with gold assets in the country. “There’s more people unified by hunger so this could be quite significant.”

Last year’s strikes which took place in March and June — were organized by the National Confederation of Guinean Workers (CNTG) and the Guinean Workers Union (USTG) to protest a 30% inflation rate, tripling fuel prices and worsening standards of living.

While the latest strike revolves around many of the same concerns, protesters are now demanding the removal of president Lansana Cont, and have the added weight of two opposition political parties and two NGOs.

Cont, who is in his 70s, is described as a diabetic who has grown increasingly reclusive. He has ruled the country since seizing power in 1984, and is seen as still having strong control over the military.

As fighting between protestors and the military intensifies, union leaders have threatened to shut down the country’s large bauxite industry.

Alcan (AL-T, AL-N) — who has operations in Guinea as part of the Halco venture with Alcoa (AA-N) and privately-owned Dadco — says the rioting could effect its production.

“There could be some minor disruption in our supply chain,” Alcan’s president and chief executive Dick Evans told reporters, “but I don’t see that cascading down to be a major interruption in terms of smelters or anything of that nature.”

Evans added that the safety of the some 3,000 workers at the company’s facilities is the primary concern.

Alcan shares were up 37 to $58.62 on 586,000 shares. Alcoa shares were not trading as U.S. markets were closed for Martin Luther King Day.

Cassidy Gold’s Gillis says drills are still turning at Cassidy’s properties, which are situated some 570-km east of the capital and epicenter for the protests, Conakry.

While some shops in the nearby towns have been closed down because of the protest, Gillis says operations weren’t affected by the last two strikes, and doesn’t expect they will this time either.

Still, he isn’t getting complacent.

“We shouldn’t take any liberties. We should keep our eyes open.” He says

In Toronto on Jan. 15 Cassidy shares were up a penny to 60 on 31,000 shares.