Bauxite prices have nearly halved, causing Guinea to panic: it will regulate production and standardize exports, effective in the coming weeks

On March 17th, it was reported that Guinea, the world’s largest bauxite producer, is in discussions with domestic mining companies. They plan to mitigate the impact of falling ore prices on the country by controlling the market supply of bauxite, ensuring stable corporate income and government tax revenue.

Guinea’s Minister of Mines and Geology, Bouna Cila, made it clear that the core purpose of this regulatory policy is to regulate bauxite production and curb the continuous decline in prices, thereby avoiding a reduction in corporate income and government tax revenue. He revealed that on March 12, the Guinean government held a special discussion with the domestic mining industry association on matters related to production regulation, reaching a consensus within the industry.

It is reported that the price of bauxite has seen a significant decline since the beginning of 2025, with a drop of nearly half, which has had a notable impact on Guinea, where bauxite exports serve as an important economic pillar. Data shows that Guinea’s bauxite exports surged by more than a quarter year-on-year last year, reaching 183 million tons. This substantial increase in export volume further exacerbated the imbalance between market supply and demand, driving down prices.

In response to this situation, Sila pointed out that the Guinean government is urging domestic mining enterprises to strictly adhere to the production standards stipulated in the mine planning and government agreements, and not to exceed the production limit. “This regulatory decision will officially take effect in the coming weeks, with the core goal of aligning the production and export scale of bauxite in 2026 with the reasonable levels set in the feasibility study.”

Sila emphasized that Guinea’s regulation this time was not intended to ban bauxite exports, but to standardize production and exports through scientific supervision, thereby achieving sustainable industrial development. At the same time, the Guinean government is also promoting industrial upgrading, hoping that more bauxite can be processed domestically into alumina, increasing the added value of resources and reducing dependence on raw ore exports.