BHP Shuts Guinea Office as Coup Closes Country on Conte Death

Dec. 24 (Bloomberg) -- BHP Billiton Ltd., the world’s largest mining company, closed its office in Guinea after the army suspended the constitution and dissolved the government following the death of President Lansana Conte. “The Conakry office is closed following the public announcement that people should stay at home,” Kelly Quirke, a spokeswoman for Melbourne, Australia-based BHP said today. “We will reopen the office as soon as it is safe to do so.” A military group calling itself the National Council for Democracy and Development pledged to set up a government of national unity. Conte’s rule was marred by delayed elections, boycotted referendums, strikes and protests. Conte, who was 74, died after a long illness. The coup may disrupt the economy of the country that has the world’s biggest reserves of bauxite, an ore used to make alumina, the raw material used to produce aluminum. United Co. Rusal and Alcoa Inc. run bauxite and alumina operations in Guinea, while BHP is considering developing a $4.8 billion alumina refinery there. BHP’s project in Guinea, a partnership with New York-based Global Alumina Corp., is “the world’s most wonderful bauxite resource,” BHP’s Chief Executive Officer Marius Kloppers has said. The refinery will have initial annual production capacity of 3.3 million metric tons and will increase to 3.6 million tons within five years. A third processing line at the plant may eventually boost production to more than 5.4 million tons, Global Alumina said March 25.