Military Juntas of the Twenty-First Century: Guinea

The leaders of the coup in the West African nation of Guinea plan to hold elections in 2010. A group of junior officers, led by Captain Moussa Dadis Camara, took power after the death of "President" Lansana Conte on December 22. Camara's junta has moved to consolidate power, "demoting" 22 generals, using force to intimidate powerful allies of the old regime, and threatening to execute anyone engaged in corruption. Guinea under Conte was named one of the ten most corrupt countries by Transparency International. Despite widespread support for the coup within Guinea, the new government was immediately shunned by the African Union and regional West African groups ECOWAS and the Mano River Union.

So there's a military coup in some little African country named after a flightless bird, or perhaps a unit of British currency...so what?

So... Guinea has the world's largest deposits of bauxite, the ore used to make alumina, which is then processed into aluminum. To illustrate the importance of Guinea to the international alumina market: during disturbances in 2007, the price of alumina jumped 76%. The country also has large deposits of iron ore, gold, and diamonds. Several multi-national corporations have multi-billion dollar extraction and processing projects planned, and other projects are already operating. There is a lot riding on control over these resources.

Gasps of horror as the junta announces, soon after seizing power, that it will be "cancelling all mining contracts". Interested parties include:

-Rio Tinto (British and Australian, world's 2nd or 3rd largest mining company), interested in building a $6 billion dollar iron ore project at Simandou (video). Their license to mine there, granted in 2006, was rescinded in August 2008, most likely because they were unwilling to pay additional bribes demanded by the Conte regime. Rio Tinto also owns Canadian aluminum company Alcan (the world's largest aluminum company) who has a stake in the Guinean national bauxite mining company (CBG), and is exploring its own alumina refinery. Rio Tinto has said the Simandou project, undertaken in concert with World Bank, has the potential to generate $10 billion dollars per year, and they had already spent more than $300 million to develop it. The value of this project was essential to Rio Tinto resisting a hostile takeover by BHP Billiton -- which leads us to our next interested party.

-BHP Billiton (Australian and British, world's largest mining company), co-majority stakeholder (33.3%) in the Guinea Alumina Corporation (which is 100% foreign-owned), as well as several other bauxite opertions. They had plans to build a $4.8 billion dollar alumina refinery. As noted above, they are attempted a takeover of Rio Tinto which would make their dominance of the mining industry unparalleled.

-United Company Rusal (Russian, world's second largest aluminum company), owns the Friguia Alumina Refinery, the purchase of which it was forced to renegotiate earlier this year by the Conte regime. The company is owned by Russian billionaire magnate Oleg Deripaska, who has faced some recent financial difficulties after being sued in British court by former Russian/Israeli business partner Mikhail Chernoy/Michael Cherney over shares in UC Rusal. Deripaska also had his visa revoked by the US State Department, and had ties to former Presidential candidate John McCain.

-Alcoa ( American, world's third largest aluminum company), owns a large stake in CBG (Rio Tinto Alcan and Alcoa both have a 45% stake in the Halco consortium, which in turn owns 51% of CBG - the Guinean government owns 49%). In July 2008, just before they extorted Rio Tinto over Simandou, the Conte regime replaced the existing Alcoa management of CBG.

-AngloGold Ashanti (British, South African, Ghanaian, large international gold miner), owns the Siguiri gold mine. The company was accused by Human Rights Watch of supporting a murderous group in the DR Congo in order to access a gold-rich area in that turbulent country.

-Benny Steinmetz (Israeli billionaire, invested in diamonds, real estate, and mining engineering projects through Bateman Engineering), several weeks before the coup claimed to have been granted half of Rio Tinto's Simandou area by the Conte regime.



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