The Guinean government has warned Russian aluminum giant United Company RUSAL that it must renegotiate a share sale deal with the government or risk losing an alumina refinery. RUSAL is likely to comply.
Guinea warned Russian aluminum firm United Company RUSAL late April 9 that the firm could lose its Friguia alumina refinery unless it renegotiates a share sale deal with the Guinean government. RUSAL, the world’s largest aluminum company, is one of the main firms involved in bauxite mining — the only real economic activity in Guinea. The government told RUSAL that its contracts to do business in Guinea are among those that will be reviewed by a minerals and petroleum contracts committee.
The Guinean government likely is asking for more money so that Guinean President Lansana Conte can continue propping up his government and the security forces upon which his power relies. Because RUSAL has long-standing, positive relations with Guinea — and because RUSAL owner Oleg Deripaska is rather unusual among Russian oligarchs in that he is actually willing to pay to attain assets — a deal between the two is likely.