Glencore secures $300 million bauxite deal in Guinea

Glencore has entered into a pre-financing and offtake agreement valued at over $300 million with Guinea’s state-owned Nimba Mining Company. The deal grants the Swiss commodities group the rights to market between 10 million and 12 million tonnes of bauxite annually for a period of five years, potentially totaling up to 60 million tonnes over the life of the contract.

Following this agreement, the Guinean government is seeking to expand the partnership with Glencore. Guinea’s Mines Minister, Bouna Sylla, indicated that discussions are underway to move beyond the export of raw ore into more value-added sectors, including alumina refining, energy, and other strategic investments. This shift aims to help Guinea capture more economic value from its significant bauxite reserves.

In London trading, Glencore shares experienced a decline of approximately 3.0 percent, trading at 5.87 GBP. This movement follows a recent dividend distribution of 0.17 USD per share.