VZCZCXRO2917
RR RUEHMA RUEHPA
DE RUEHRY #1054/01 2630656
ZNR UUUUU ZZH
R 200656Z SEP 07
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC 1654
INFO RUEHZK/ECOWAS COLLECTIVE

UNCLAS SECTION 01 OF 02 CONAKRY 001054 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12598:  N/A 
TAGS: EMIN ECON ETRD PGOV GV
SUBJECT: VISIT TO GUINEA'S BAUXITE HEARTLAND 
 
¶1.  (SBU) SUMMARY.  In the Boke region, Guinea's bauxite companies 
operate around the clock, mining and exporting thousand of tons of 
high quality ore, while spinning off benefits to the local 
population.  Testifying to bauxite's importance to the new 
government, a close friend of the prime minister was recently 
appointed governor.  END SUMMARY. 
 
¶2.  (SBU) On September 10 and 11, Econoff visited government 
officials and mining projects in the heart of Guinea's bauxite 
country, Boke and Sangaredi (meeting with Global Alumina reported 
septel). 
 
--------------------------------- 
Meeting with the Governor of Boke 
--------------------------------- 
 
¶3.  (SBU) In a short meeting, the newly appointed Governor of the 
Boke region, M. Siafa Beavogui, emphasized his positive feelings 
towards the U.S. and hope for continued good relations between 
Guinea and the U.S.  He said Boke is an important region because of 
its immense reserves of high quality bauxite and its port in Kamsar, 
the second largest port in Guinea.  He identified the Global Alumina 
project, as well as a new RusAL alumina factory, near Fria, as 
important new investments in the region. 
 
¶4.  (SBU) M. Beavogui went on to outline the intractable problems he 
is facing, from lack of electricity and water, to lack of equipment 
for police forces throughout Boke.  The Governor stated that while 
mining companies have historically provided electricity to the 
surrounding communities, population growth has now outstripped 
supply, resulting in widespread electrical shortages. 
 
¶5.  (SBU) The Governor closed the meeting by noting that he is a 
longtime colleague and friend of current Prime Minister Lansana 
Kouyat.  When he was Chef de Cabinet of the Ministry of Foreign 
Affairs in Conakry and Kouyate was Ambassador in Cairo, he said he 
helped speed up Kouyate's paperwork to work at the U.N., and it was 
during this time that they became close friends. 
 
---------------------------- 
Onward to the Bauxite Mines! 
---------------------------- 
 
¶6.  (SBU) Upon arrival in Sangaredi, Econoff met with officials of 
the Companie de Bauxite de Guinea (CBG); the Director of Mines, M. 
Roger Thea, and the Superintendent of Mining, M. Sekou Berete.  M. 
Thea stated that CBG is owned by the government (49%) in partnership 
with Alcoa, Alcan and others (51%), and that CBG has the largest 
bauxite mining operation in Guinea with reserves estimated to last 
for hundreds of years. 
 
¶7.  (SBU) M. Thea classified reserves as 'exportable' and 
'non-exportable,' basing the distinction on the percentage of 
bauxite contained in the rock.  Bauxite purity of 53% and above is 
considered suitable for export while less than that is considered 
non-exportable.  The Director said that proven exportable reserves 
could last until 2025, and non-exportable reserves could last for 
centuries. 
 
¶8.  (SBU) The bauxite is strip mined around the town of Sangaredi 24 
hours day, seven days a week.  After stripping off somewhere between 
8 and 70 meters of rock, the company ships the bauxite by rail to 
the port of Kamsar (135 km away) for processing and export. M. 
Berete asserted that CBG is very aware of its environmental 
responsibilities and he identified several rehabilitated mining 
areas. 
 
¶9.  (SBU) Econoff also met with, Charles Wickwire, the Construction 
Manager for Bechtel at the Global Alumina (GA) refinery site just 
outside of Sangaredi.  (See septel for report of this visit.)  When 
asked about the environmental rehabilitation for the operations at 
the Global Alumina plant, Mr. Wickwire said that Bechtel was going 
to completely rehabilitate all mining areas, contrasting Bechtel's 
work with that of CBG which he dismissed as not serious 
environmental rehabilitation. 
 
¶10.  (SBU) Currently, CBG is in the middle of moving its main 
offices and maintenance facilities to a new location so that they 
can mine the area (60% purity) where the facilities are currently 
located.  Mr. Berete confided that eventually, they want to do the 
same thing to the town of Sangaredi, currently home to several 
thousand people. 
 
¶11.  (SBU) CBG stressed the importance of maintaining good relations 
with the surrounding communities.  CBG provides some water and 
electricity to the local community as well as passenger rail service 
from Sangaredi to Boke to Kamsar, spaced between six daily bauxite 
trains.  Mr. Berete said that by providing passenger service for a 
token fee, the policy resulted in local communities protecting the 
railroad instead of looting it. 
 
¶12.  (SBU) Mr. Thea stated that CBG's average annual bauxite exports 
 
CONAKRY 00001054  002 OF 002 
 
 
are approximately 13 million tons, but that this figure will not be 
reached in 2007 due to the two-month forced closure of the mine 
during the strike in January and February 2007.  He went on to say 
that there were other areas CBG would like to mine, but that the 
locations lack the necessary infrastructure.  The Director said this 
is one reason why CBG supports the Trans-Guinean rail line proposed 
by Rio Tinto.  He said that once the line is operational, CBG could 
expand mining to other areas of Guinea. 
 
¶13. (SBU) Director Thea said that 30% of CBG's bauxite exports are 
destined to the U.S.  He also revealed that CBG's contract with its 
partners provides for a duty-free price to CBG, and therefore, he 
saw no reason to use the provisions of the African Trade and 
Development Act (AGOA).  (NOTE:  This does not explain why CBG's 
partners do not use AGOA to reduce the cost of importing the bauxite 
into the U.S. END NOTE.) 
 
BROKENSHIRE