Bauxite shipments stopped as violence in Guinea grows

As the general strike in Guinea escalates in size and violence shipments of bauxite from Compagnie des Bauxites de Guinea (CBG) the world’s largest bauxite exporter have been stopped.

CBG is operated by Pittsburgh-based Alcoa (AA.N) through its interest in Halco a joint venture company that owns 51% of CBG. Montreal-based Alcan (AL-T, AL-N) is a shareholder in Halco as is privately held Dadco.

News of halt on shipping comes as at least 20 people have been reported shot, and 11 dead in the capital of Conakry after the military opened fire on unarmed protestors according to the UN.

Ongoing shooting in other towns was said to be preventing an official tally on the total number of injured and dead.

The general strike began on Jan. 10, after the countries powerful labour unions insisted on the end of President Lansana Conte’ tenure.

But on Jan. 22 union leaders said they had lost control of the protest as discontent spread rapidly across the country and throughout Guinean’s of varying walks of life.

The protests have been spurred by a crumbling economy, depreciating living standards and the growing perception that Conte’s sickliness has left him as an incompetent leader. Conte has made some concessions to the union leaders but has refused to step down.

The stopping of bauxite shipments comes after CGB officials said stockpiles would ensure continued shipping for another week.

“If you can’t … get the bauxite from the mine to the port, it doesn’t matter how much stockpiles you have, you need to be getting the bauxite,” Alcoa spokesman Kevin Lowery told news agencies.

Workers at the project went on strike at the end of last week stopping all bauxite mining, drying, rail transportation and ship loading operations.

Guinea is the world’s second largest producer of bauxite, but the largest exporter of the ore, as Australia — the largest producer — refines much of its bauxite within its own borders.

Bauxite is refined to make alumina which is then smelted to make aluminum.

CBG exports roughly 13 million tonnes of bauxite per year.

Alumina prices are currently trading between US$260 and US$275 per tonne, some experts were already predicting higher alumina prices in the coming year as demand in China and India continues to trend upwards.

The latest block in the supply chain has acted as a catalyst to such increases traders in London told Reuters.