Guinea's junta has banned exports of unrefined gold, forcing mining houses to process bullion locally or risk losing access to one of Africa's richest gold belts. The decree, signed by Colonel Mamadi Doumbouya on Monday, requires all gold producers to sell to the state-owned refinery within 90 days. Sources close to the mines ministry confirm the measure aims to capture more value from Guinea's estimated 1,000-tonne reserves.
British firms like AngloGold Ashanti and Hummingbird Resources now face a stark choice: build expensive processing plants or cede ground to Chinese rivals already courting Conakry. 'This is a game of thrones,' a senior industry source told me. 'The junta wants a slice of the cake, and they're holding a knife.
' Documents obtained by this bureau show Guinea's gold exports hit $2.3bn last year, nearly all as raw doré bars. The new law mandates that 80% of production must be refined locally by 2026.
Junta spokesman Colonel Amara Camara insisted the move would 'create jobs and stop the bleeding of wealth'. But critics say it's a power grab. 'Doumbouya needs cash to stay in power,' said Mohamed Camara, a former mines minister.
'This is about control, not development.' The ban coincides with Guinea's push to join a gold-backed currency union for West African states. Central bank sources confirm the central bank has been stockpiling bullion.
Meanwhile, trade data shows a drop in gold smuggling since January. 'They're serious,' said a European diplomat in Conakry. 'They've been tracking trucks with satellite imagery.
' For British mining interests, the calculus is brutal. AngloGold's Siguiri mine produced 245,000 ounces last year. Building a refinery at Siguiri could cost $50m.
'That's doable for us,' an AngloGold executive said on condition of anonymity. 'But junta contracts aren't worth the paper they're printed on.' Hummingbird, which relies on its Kouroussa mine for 60% of revenue, is more vulnerable.
Shares fell 12% on the news. The company declined to comment. The political backdrop is precarious.
Doumbouya, who seized power in 2021, faces internal dissent and a looming election. Gold revenue is his lifeline. 'He's betting the house on this,' said a Conakry-based risk analyst.
'If prices drop or smuggling booms, he's finished.' The junta has also frozen bank accounts of three gold trading firms accused of under-declaring exports. Court filings seen by this reporter show tax evasion charges pending.
Local refineries currently produce less than 1% of Guinea's gold. The new law gives them a monopoly. Swiss and Lebanese refiners, who bought 70% of Guinea's gold last year, are scrambling.
'They're trying to kill the Swiss connection,' a Geneva-based trader told me. 'It won't work. Smugglers will just find a new route.
' The move mirrors recent actions by Ghana and Mali. But Guinea's gold is of higher purity, making it coveted by central banks. China's Shandong Gold has already offered to build a refinery in return offtake rights.
British firms that got in early are now stuck. 'We invested millions in exploration under the old rules,' said the industry source. 'This is nationalisation by other means.
' The boardrooms of London will be busy tonight. One thing is certain: the days of easy pickings in Guinea are over.
