Guinea weighs bauxite export quotas as prices slide and freight costs rise, sources say

By Maxwell Akalaare Adombila

ACCRA, March 16 (Reuters) - Guinea, the world's top bauxite producer, is considering introducing export quotas for mining companies as early as this month, according to four sources familiar with the matter, as global prices for the aluminum feedstock retreat and shipping costs climb, squeezing revenue.

Guinea’s bauxite exports jumped 25% in 2025, with more than 70% shipped to China.

Global bauxite prices have fallen 20% to 35% from 2025 highs on Guinea's surprise shutdowns, said Tom Price, head of commodities at investment bank Panmure Liberum. Benchmark Guinea and Australia bauxite cargoes traded at $60 to $70 a metric ton on Monday.

Two industry sources and a government source said export quotas for individual mining projects were under assessment, though no decision has been taken and details remain unclear.

A mining executive said the move would be limited to large producers. The sources asked for anonymity due to the sensitive nature of the discussions.

Guinea accounts for more than 40% of the global bauxite supply and the government has moved aggressively to clean up the mining sector, which also hosts vast reserves of iron ore, gold and lithium. Guinea's mines ministry did not immediately respond to requests for comment.

Freight costs, driven by the war on Iran, are also squeezing producers, said Patrice L'Huillier, chief executive of Guinea's state-owned Nimba Mining.

African nations are taking tougher steps to earn more from their commodities, imposing export controls, higher royalties and domestic processing requirements.

Price warned that attempts to lift prices by restricting exports could backfire.

“Guinea's export bans of 2024 should give investors an idea of where prices can go, if this same government now decides to control exports via quotas,” he said.

Export quotas could flag Guinea as a supply risk and hurt longer-term demand, Price said.