How China's CPC and State Actors Secured Bauxite and Iron Ore in Guinea

 The Center for Strategic and International Studies published in June 2022 a study titled "CCP Inc. in West Africa: How Chinese Party-State Actors Secured Critical Minerals in Guinea" by Briana Boland, Lauren Maranto, and Jude Blanchette.

This case study explores how Chinese diplomatic, regulatory, financial and commercial actors worked in concert to secure access to bauxite and iron ore in Guinea.  Chinese diplomatic support and state financing provided conduits to help further favored projects and increase Chinese companies' access to Guinea's mining sector.  The study also highlights the role of the Communist Party of China.  

Competition for Guinea's Resources: China, Russia, and Turkey

 The Foreign Policy Research Institute blog posted on 17 September 2021 a commentary titled "Foreign Competition in Guinea: The Scramble for Natural Resources" by Jessica Pickering.

Following the coup d'etat in Guinea, the author looks at China, Russia, and Turkey as they vie for access to or development of the country's bauxite and iron ore deposits.

Russia-Guinea Relations in Aftermath of Coup

 The Russian International Affairs Council (RIAC) published on 7 September 2021 an analysis titled "Guinea: Coup d'Etat or Coup de Grace?" by Nikita Panin, RIAC staff member.  

Since independence in 1958, Guinea has had a close relationship with the former Soviet Union and subsequently with Russia.  Russia recently signed a military cooperation agreement with Guinea while Russian companies have significant investments in the development of Guinea's bauxite mines.  The author believes that "nothing will fundamentally change for Russian businesses in Guinea" although it is not clear how much public support there is for the coup.  

Does Coup in Guinea Signal Change in China's Noninterference Policy?

 Foreign Policy published on 8 September 2021 a commentary titled "China Is OK with Interfering in Guinea's Internal Affairs" by Charles Dunst, Eurasia Group.

In response to Guinea's military coup that overthrew President Alpha Conde, China responded that it "opposes coup attempts to seize power and calls for the immediate release of President Conde."  The author argues that because of China's major economic investment in Guinea, it chose to engage in the internal affairs of the country contrary to its stated policy of non-interference.  

Will Coup in Guinea Impact Aluminum Production in China?

 Nikkei Asia published on 8 September 2021 an article titled "Guinea Coup Upends China Strategy as Aluminum Prices Soar" by Takeshi Kumon and Iori Kawate. 

China, the leading aluminum producer globally and the biggest consumer of bauxite, obtains much of its bauxite from Guinea, the world's leading supplier.  The question is whether the recent military coup in Guinea will upend the bauxite market.  So far, the impact has been minimal.  

China Reacts Uncharacteristically to Military Coup in Guinea

 China's Ministry of Foreign Affairs spokesperson responded to a question on 6 September 2021 concerning the military coup in Guinea that deposed President Alpha Conde.  While the spokesperson provided the anticipated response for resolving the issue "through dialogue and consultation," he added that "China opposes coup attempts to seize power and calls for the immediate release of President Alpha Conde."  China normally does not criticize regime change, but moves on to accept the new government.  

China has an important economic relationship with Guinea, which accounts for 22 percent of the world's production of bauxite, most of which is processed in China.  Guinea is also home to the world's largest reserves of iron ore.  Chinese companies have major interests in its production.  

Chinese Resource-Backed Infrastructure Financing in Guinea and Ghana

 The China Africa Research Initiative published in July 2021 an analysis titled "Chinese Resource-Backed Infrastructure Financing Investments: Comparing Governance in Guinea and Ghana" by Qianrong Ding, Hayden Hubbard, Emily Larkin, and Dawalola Shonibare.  

The study examines and compares governance issues in Ghana and Guinea and the social and environmental dilemmas linked to them.  The analysis suggests that improving transparency, regulatory enforcement, and feedback mechanisms between local communities, firms, and government can ensure that mining investments through natural resource for infrastrucutre agreements are socially, economically, and environmentally sound.

Chinese Resource-backed Loans in Ghana and Guinea

The Center for Advanced China Research published on 27 February 2020 an analysis titled "Resource-backed Loans, Revisited: Infrastructure for Aluminum in Ghana and Guinea" by Scott Wingo, PhD candidate at the University of Pennsylvania.

The author looks at major resource-backed Chinese loans for bauxite deals in Guinea and Ghana. He concludes that quantitative and qualitative changes in resource-backed lending show increased caution on the part of Beijing.

China's Bauxite Deal with Ghana Encounters Environmental Opposition

Peace FM Online posted on 15 January 2020 an article titled "A Rocha Ghana, 20 CSOs Sue Ghana Gov't over Atewa Bauxite Mining."

The government of Ghana entered into a barter agreement with China to mine Ghana's bauxite in the Atewa forest reserve in exchange for $2 billion in infrastructure development. An environmental protection group, A Rocha Ghana, and 20 civil society groups have sued the government of Ghana in an attempt to stop it from allowing the Atewa forest reserve to be mined for bauxite.

China-Africa Barter Deals

The Asia and the Pacific Policy Society posted on 3 December 2019 an article titled "Can Ghana Solve Developing Countries' Foreign Currency Problems?" by Lauren Johnston, School of Oriental and African Studies.

Ghana recently signed a $2 billion dollar line of credit with China for financing and building infrastructure in exchange for Ghanaian bauxite. This is effectively a barter arrangement that avoids the need to pay with foreign currency. The gamble is whether the agreed price for the bauxite rises or falls against the benchmark. The deal has similarities to earlier arrangements whereby Angola obtained lines of credit from China paid back by exporting oil to China.

The arrangement in Ghana may lead to other barter deals in Africa, but not all African countries have significant amounts of natural resources or other products desired by China.

Concerns Over Ghana's $2 Billion Deal with China

CNBC published on 21 November 2019 an article titled "China's $2 Billion Deal with Ghana Sparks Fears over Debt, Influence and the Environment" by Elliot Smith.

China is financing $2 billion worth of rail, road and bridge networks in exchange to access for 5 percent of Ghana's bauxite reserves. The deal has drawn criticism from environmental activists, political opposition, and international government investment partners who are concerned about a lack of transparency and increasing debt sustainability.

Ghana: Chinese-bauxite Mine and Environmental Damage

The South China Morning Post published an article on 13 October 2019 titled "Activists in Ghana Lead Fight against China-backed Bauxite Mine in Pristine Rainforest" by Nosmot Gbadamosi.

The article describes the conflict between those who support the development in a Ghanaian rainforest of a Chinese bauxite mine and environmental activists and local residents who oppose the project because of the environmental damage it causes.

China Makes Major Play for West African Bauxite

World Politics Review published on 22 September 2017 an article titled "China Races into West Africa's Mineral Rush, and the Environmental Costs Rise" by Matthew C. DuPee.

China recently signed a $20 billion loan agreement with Guinea for concessions and access to its bauxite deposits. It is also negotiating with Ghana for access to bauxite. The question is whether these deals can overcome rampant corruption and careless environmental practices.