RUSAL says minerals output unaffected by Guinea protests

CONAKRY (Reuters) - Power protests in Guinea that halted trains carrying bauxite for Russian aluminium firm RUSAL have not affected its output, the company said on Wednesday. RUSAL exports bauxite refined product alumina from Guinea, which holds one third of the world's reserves of the ore, as well as other minerals. "The situation in Guinea does not affect the company's overall performance targets," RUSAL said in an emailed statement. Most Guineans live in poverty despite the country's lucrative raw materials, and while resources firms are keen to launch operations there, analysts say political instability is a concern for investors. Blockages placed on railway lines by townsfolk demanding mains electricity have stopped trains running since Monday and were still in place on Wednesday. "We are working on solving the problem. A delegation is in place to negotiate with the demonstrators," said Ministry of Mines official Yamoussa Bangoura. Demonstrations over poor public services are frequent in Guinea, and protests over poor electricity services often target bauxite operations as these tend to generate power for surrounding towns under agreements with the government. "UC RUSAL and local authorities in Guinea together with the Ministry of Mines and Geology are taking all necessary measures to resolve the current situation and provide for the social stability in the region," RUSAL said. RUSAL's Compagnie des Bauxites de Kindia (CBK) exports bauxite via rail through Mambia to Conakry's port. RUSAL exports alumina from its Fria plant to the north via a different route. As well as RUSAL, U.S. aluminium company Alcoa and London-listed Rio Tinto dig bauxite in Guinea. Rio is also majority owner of Simandou, which it says is the richest unexploited iron ore deposit in the world.