Three sources told Reuters that Guinea has reached an agreement with Emirates Global Aluminium.

(  EGA`s production line)

Emirates Global Aluminium (EGA) and Guinea Near Settlement of Asset Dispute

Three sources familiar with the matter told Reuters that Guinea has reached an agreement with Emirates Global Aluminium (EGA) that would avert an imminent arbitration case over the seizure of the company's local mining unit last year.

Traders and government officials explained that, as part of a comprehensive settlement, traders and other potential bauxite buyers are considering supply deals linked to the seized assets.

They indicated that this includes arrangements where advance payments against future shipments would be used to help settle EGA's claims.

The agreement, which is still being finalized, follows the government's October takeover of Guinea Alumina, an EGA subsidiary specializing in bauxite. The dispute stemmed from a disagreement over an alumina refinery.

Reuters reported earlier that the government subsequently transferred Guinea Alumina Corporation's assets to the state-owned mining company Nimba and explored the possibility of supplying Emirates Global Aluminium with bauxite.

A government official confirmed that an agreement was imminent, but several technical details remained unresolved.