Since colonial times, the small coastal West African nation of Guinea has been a hub of mining activity, drawing explorers from all over the world seeking to capitalise on its diverse mineral riches, including iron, gold, diamond and bauxite.
In 2010, mining accounted for 17% of GDP and more than 50% of exports. And more recently, the country’s mining sector has been undergoing a renaissance, attracting substantial investment.
This has led to investment in infrastructure and jobs in the country.
Guinea is famous for its large and mostly untapped reserves of bauxite – the main source of gallium and aluminium – accounting for 94% of the continent’s production of the mineral and a quarter of global reserves, more than any other nation.
Exports of the mineral quadrupled between 2015 and 2020, and in 2023 Guinea became the top source of bauxite for China.
Gold Industry
The gold industry in Guinea is another standout performer for the country and the continent.
Guinea’s gold mines can be found in the northeast of the country, in the Siguiri Basin, which forms part of West Africa’s prolific Birimian greenstone belts.
These belts extend through Ghana, Côte d'Ivoire, Guinea, Mali and Burkina Faso and host many of Africa’s major gold mines.
In 2023, Guinea was Africa’s sixth largest gold producer country, producing around 2 million ounces.
AngloGold Ashanti (ASX:AGG)’s Siguiri and Nordgold’s Lefa are the two biggest of the gold mines in production in Guinea, but there are several smaller mines in the vicinity.
Africa’s largest gold development
Enter Predictive Discovery’s Bankan Project, which first hit significant gold in 2020 and already boasts a mineral resource of 5.4 million ounces, which has spurred a flurry of exploration activity in the country.
Bankan is Africa’s largest gold development project.
Predictive Discovery’s pre-feasibility study outlines a maiden ore reserve of 3.05 million ounces, with an average annual production of 269,000 ounces of gold over a 12-year mine life, which will establish it as a key project in Guinea's mining sector mix.
Rio Tinto’s Simandou project, 550 kilometres southeast of Conakry, is also poised to transform Guinea’s economic landscape.
It’s one of the world’s largest untapped iron ore deposits and the largest current mining development.
Ahead of first production in late 2025, it is expected the deposit will see an astonishing total investment by Rio Tinto and Chinese companies of more than US$20 billion.
The development includes essential infrastructure such as railways and port facilities, which further enhance Guinea’s appeal as a mining investment destination.
Also playing in the space is Sanu Gold, an early-stage exploration company, which is exploring three gold projects in Guinea.
Despite its modest market cap – just C$40.54 million (A$44.74 million) – the company has attracted significant backing, with Montage Gold (19.9%), AngloGold Ashanti (ASX:AGG) (14%), the Lundin Family (10%) and Capital Drilling (10%) recently buying in, pointing to growing interest in getting in on the Guinea game.