FACTBOX-Guinea's major mining operations

Thomson Reuters






June 27 (Reuters) - Guinea, the world's biggest exporter of
aluminium ore bauxite and a potentially huge source of iron ore,
is holding a presidential election on Sunday intended to end a
political crisis that has persisted since a 2008 military coup.

Resources firms have committed billions of dollars of fresh
investment in the West African country this year. Several
presidential candidates have indicated they could put existing
contracts under review if elected.

Here are details of some of the country's major mining
operations and planned developments.



*********************BAUXITE***************************

BACKGROUND:

Guinea boasts about a third of all known reserves of
bauxite, the ore used to make aluminium. CBG, or Compagnie des
Bauxites de Guinee, owned by Alcoa , Rio Tinto and the Guinean government, is the world's biggest
bauxite exporter. It shipped a 13.7 million tonnes in 2008.



PRODUCTION:

Guinea's total bauxite production in 2009 was 14.77 million
tonnes, down from 19.78 million in 2008, partly because of the
effects of political turmoil. Output recovered in the first
quarter of 2010 to nearly 4 million tonnes from 3.35 million in
the same period a year ago, the government said. [ID:nLDE64K1VP]



Bauxite production capacity is estimated as follows:

- Compagnie des Bauxites de Guinee/Boke Mine 15 mln

- Alumina Company of Guinea/Fria-Kimbo Mine (RUSAL) 2.8 mln

- Compagnie des Bauxites de Kindia 3.8 mln





ALUMINA REFINERIES:

RUSAL's Friguia plant, Guinea's largest single
employer, refines bauxite to alumina, with a total production of
about 530,000 tonnes.

Alcoa and Rio Tinto are considering adding an alumina
refinery to their Guinea bauxite joint venture.

Toronto-listed Global Alumina is building a new
3.3 million tonnes per year alumina refinery but has delayed
start-up by two years to 2011 and raised its cost forecast by 35
percent to $4.3 billion.

Total Guinean production of alumina was down 15.8 percent in
2009 to 500,400 tonnes and continued to lag during the first
quarter of 2010.



**********************IRON ORE**************************

BACKGROUND:

Guinea is believed to have some of the world's richest
undeveloped iron ore deposits. A flurry of deals have been
announced in recent months despite ongoing political
uncertainty.


DEALS:

In March, Rio Tinto and Chinese metals group Chinalco signed
a $2.9 billion agreement to jointly develop the Simandou iron
ore project. Under the terms of the deal, Rio puts its 95
percent stake in Simandou into the joint venture, and Chinalco
pays $1.35 billion for 47 percent in that venture.

Rio says Simandou is the largest undeveloped iron ore mine
in the world, containing 2.25 billion tonnes of the mineral. The
project is forecast to cost $6 billion.

On June 23, Rio issued a statement insisting it has "firm
rights" to all of its Simandou deposit after the government said
it wanted to exercise an option to acquire 20 percent of the
part under Rio's control. The government last week gave Rio 60
days to produce a feasibility schedule for the project or face a
possible further review of the deposits' future.

In April, Vale spent $2.5 billion on a
majority stake in a division of BSG Resources in Guinea in order
to develop the Simandou-Zogota project. Output will begin in
2012 with 10 million tonnes of iron ore and reach 50 million
tonnes by 2015, Vale said.

London-listed explorer Bellzone announced a
joint-venture deal with Guinea in June, paving the way for a
feasibility study into the construction of the 280-km railway
line from the Kalia iron ore concession to the port of Matakan.
The study should be completed within 30 months, according to the
terms of the deal. China International Fund will help fund the
project, Guinea's government said.



************************GOLD****************************

BACKGROUND:

Guinea's gold production surged during the first quarter of
2010 to 229,991 ounces from 73,210 ounces in the same quarter a
year ago. It remains a relatively small producer compared with
regional leaders Ghana and Mali, which produce closer to 2
million ounces each per year.



PRODUCTION:

Anglogold Ashanti operates Guinea's biggest gold
mine at Siguiri in the northeast, where it produced 332,000
ounces of gold in 2008. Guinea holds a 15 percent stake.

Crew Gold operates the LEFA Corridor Gold Project,
which produced 189,520 ounces in 2008.

West Africa-focused gold miner Semafo, which is listed in
Toronto, operates the Kiniero mine in eastern Guinea. It
produced 51,700 ounces in 2008.

Artisanal gold mining is also common in Guinea.



**********************DIAMONDS***************************

Guinea's diamond reserves are estimated at more than 25
million carats, not including as yet unmapped kimberlite fields.
Production during the first quarter of 2010 was 72,870 carats,
up slightly from 70,920 carats in the same period in 2009.



**********************NICKEL****************************

Australian-listed company Lindian Resources is
exploring for nickel at the Dinguiraye project, about 400 km
northeast of Conakry.
********************************************************
Sources: Reuters news, company websites & Reuters Metal
Production Database, available to 3000Xtra users at
http://bond.views.session.rservices.com/MPD/Default.aspx
(Reporting by Daniel Magnowski, Richard Valdmanis, Saliou
Samb and David Cutler; editing by Matthew Jones)
(For full Reuters Africa coverage and to have your say on
the top issues, visit: http://africa.reuters.com/)