Highlights
- Chinalco, a Chinese state-owned mining company, signed a framework agreement with Guinea-Bissau to develop mineral resources and boost economic growth.
- The partnership aims to leverage Guinea-Bissau’s potential mineral resources such as bauxite, diamonds, and phosphates.
- There are questions surrounding economic dependency and sustainability regarding the partnership.
- Chinese President Xi Jinping and Guinea-Bissau’s President Umaro Sissoco Embaló elevated their countries’ relationship to a strategic partnership during a state visit in Beijing.
Late last month an aluminum supply chain-focused media (opens in a new tab) reported that Chinalco and Guinea-Bissau signed Mineral Resources Cooperation Agreement.
Chinalco (opens in a new tab), a leading Chinese state-owned mining company, signed a framework agreement with Guinea-Bissau’s Ministry of Natural Resources (opens in a new tab) to collaborate on mineral resource development. The agreement aims to harness Chinalco’s technical expertise and environmental stewardship to boost and monetize Guinea-Bissau’s mining sector, with the aim of spurring economic growth.
Senior officials from both parties were involved last month, including China’s Ambassador to Guinea-Bissau, Yang Renhuo (opens in a new tab), and key representatives from Guinea-Bissau’s government.
The Nation
With 2.151 million people, Guinea-Bissau is a tropical country on West Africa’s Atlantic coast that’s known for national parks and wildlife. The forested, sparsely populated Bijagós archipelago is a protected biosphere reserve. Its main island, Bubaque, forms part of the Orango Islands National Park, a habitat for saltwater hippos. On the mainland, the capital, Bissau, is a port with Portuguese colonial buildings in its old city center.
Formerly under Portuguese control, the country declared its independence in 1973. The various cultures go way back in history, back to the Kingdom of Kaabu (a federation of Mandinka kingdoms in the Senegambia region centered within modern northeastern Guinea-Bissau), as well as part of the Mali Empire. Parts of this kingdom persisted until the 18th century, while a few others had been under some rule by the Portuguese Empire since the 16th century. In the 19th century, it was colonized as Portuguese Guinea as reported in Wikipedia.
Freedom House provides a listing of democratic advancements (opens in a new tab) in this nation.
The Deal
The agreement emphasizes the long-standing friendship between Guinea-Bissau and China, highlighting China’s prior contributions to the West African nation’s development. Guinea-Bissau’s President Umaro Sissoko Embaló met with Chinalco’s delegation, reaffirming his government’s commitment to fully support Chinalco’s exploration and development activities by providing favorable policies and operational conditions.
While Guinea-Bissau itself doesn’t have significant mining activity, its neighboring country, Guinea, experiences major environmental problems due to its large-scale bauxite mining industry, including water pollution, land degradation, and air pollution from extraction processes, primarily impacting the Boké region with its rich bauxite deposits; these issues can also affect communities near the border with Guinea-Bissau through water flow and air quality concerns.
Guinea-Bissau does have potential mineral resources likebauxite, diamonds, and phosphates, hence the Chinese interest. The West African nation’s mining industry is currently very small, primarily limited to small-scale production of construction materials like sand, clay, granite, and limestone; there is no large-scale commercial mining operation in the country as of now, but of course this could change.
Not Much Detail
Not much is mentioned about true social and environmental impacts of the agreement. While of course the agreement mentions Chinalco’s commitment to environmental protection, how will Guinea-Bissau ensure that sustainable practices are adhered to, given the potential risks of ecological damage and community displacement often associated with mining activities?
Deal Questions
Will Guinea-Bissau’s partnership with a Chinese state-owned company create economic dependencies, or will it genuinely foster long-term local capacity building and economic independence?
And what measures are in place to ensure transparency in the financial and operational arrangements? How will the revenues from mineral extraction be used to benefit Guinea-Bissau’s population?
The agreement lacks mention of the involvement of local communities in decision-making. How will Guinea-Bissau ensure that community interests and livelihoods are protected?
The agreement signals China’s continued expansion of its influence in Africa through infrastructure and resource deals. However, it raises questions about the equitable distribution of benefits and the sustainability of such partnerships for resource-rich but economically vulnerable nations like Guinea-Bissau.
Earlier Meeting this Summer
On July 10, 2024 as reported by the Chinese Ministry of Foreign Affairs (opens in a new tab), Chinese President Xi Jinping and Guinea-Bissau’s President Umaro Sissoco Embaló met in Beijing to elevate their countries’ relationship to a strategic partnership. Xi Jinping emphasized China’s commitment to supporting Guinea-Bissau’s national development through collaboration in areas such as agriculture, mining, infrastructure, and the blue economy, while also enhancing education and public health through scholarships and expertise sharing. Xi reiterated China’s broader role in fostering unity among African nations and emphasized the mutual benefits of initiatives like the Belt and Road and the Forum on China-Africa Cooperation (opens in a new tab) (FOCAC).
President Embaló expressed deep gratitude for China’s unwavering support for Guinea-Bissau during its challenges. He highlighted China’s “non-colonial” approach to foreign relations and its role in aiding African development through infrastructure projects. Interestingly, Guinea-Bissau reaffirmed its commitment to the“one-China policy” and pledged closer cooperation in trade, energy, and multilateral affairs.
The two nations signed multiple agreements on economic development, mining, and other initiatives, issuing a joint statement to formalize their new strategic partnership. The state visit was marked by grand ceremonies, including a welcoming banquet and military honors.
The Chinese government press release celebrated the growing partnership but left critical questions about its long-term impacts and balance of benefits unanswered.
Rare Earth Exchanges raised some questions concerning the unfolding engagement, including:
- Economic Dependence: How will Guinea-Bissau ensure that its growing reliance on Chinese investment and expertise does not lead to economic dependency or diminished agency in its policy decisions?
- Mutual Benefits: While China has pledged developmental support, to what extent will Guinea-Bissau benefit in terms of building its own capacities and fostering long-term economic self-sufficiency?
- Geopolitical Influence: Could China’s strategic partnership and its initiatives, such as the Belt and Road, deepen China’s influence in West Africa at the expense of other global powers, potentially creating geopolitical tensions?
Also, we note that the Chinese press release portrayed the partnership as mutually beneficial but does not critically evaluate potential power imbalances, given China’s economic and political leverage over smaller nations like Guinea-Bissau.
Plus, the emphasis on China’s non-colonial approach and respect for sovereignty overlooks criticisms that Chinese investments in Africa can sometimes lead to debt dependence and limited local empowerment.
Finally, the article does not address how local communities in Guinea-Bissau might perceive or be impacted by China’s involvement, particularly in sectors like mining, which have environmental and social implications, as well as economic potential.
About Chinalco
Founded in 2001, the Aluminum Corporation of China (Chinalco) is a central government-supervised state-owned enterprise and a leader in the global nonferrous metals industry. With operations spanning over 20 metals like aluminum, copper, and gallium, and a presence in more than 20 countries, Chinalco has been a Fortune Global 500 company since 2008 and is a key shareholder of Rio Tinto. Its production capacity in alumina, primary aluminum, and high-purity materials leads the global market, and it holds significant positions in China’s copper, zinc, and lead industries.
Strategic Contributions and Innovations
According to its website, Chinalco plays a critical role in securing China’s strategic mineral resources, with flagship projects like the Toromocho (opens in a new tab) copper mine in Peru and the Boffa bauxite mine in Guinea. Its advanced materials, including high-end aluminum and copper alloys, are integral to aerospace, semiconductors, and other high-tech industries. Chinalco leads in technological advancements, pioneering energy-efficient aluminum production and independently developing core products such as ultra-fine aluminum nitride.
Commitment to Sustainability and Social Responsibility
Chinalco emphasizes green and low-carbon development by integrating clean energy sources and promoting full lifecycle recycling of nonferrous metals. It actively supports rural revitalization, the Belt and Road Initiative, and environmental sustainability.
Recognized as an ESG Demonstration Enterprise, it champions initiatives that align with global and domestic sustainability goals.
Chinalco aims to become a world-class nonferrous metals company by focusing on innovation, resource security, advanced materials, and digital transformation. Guided by its corporate spirit of “Excellence through Diligence and Innovation,” Chinalco is dedicated to fostering sustainable development and contributing to China’s modernization.
Rare Earth Exchanges will investigate ongoing to explore actual track record.
Daniel
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