Guinea, Russia compete over aluminium deal

The Guinean government has taken over a Russian company, Friguia, which has operated in the country for years under the former administration, state media said. Friguia, an aluminium refinery, had a full contract to exploit Guinea’s rich bauxite deposit but the new head of state, Moussa Camara said he may seek another partner after accusing the world’s biggest aluminium producer of underpayment. Moscow-based Rusal, owner and operator of Friguia, has 10 days to appeal a court decision giving the plant to the government. Russia’s Foreign Ministry said Guinea plans to expropriate the site and should consider “possible consequences” for their relationship. Camara said he had asked the justice ministry back in April to consider legal action over Rusal’s deal. “Guinea was paid $19 million for the assets by Rusal, whereas consultants had valued them at $257 million,” he said. Guinea, the largest exporter of bauxite, last December ordered Rio Tinto Group, the world’s second-biggest iron ore producer, to hand over part of an iron-ore concession. The country is also reviewing agreements between the previous government and companies including AngloGold Ashanti Ltd. Camara took power last year in a military coup following the death of former president, Lansana Conté, who had ruled the West African nation for 24 years.