* Global bauxite prices drop 20%-35% due to Guinea's

export recovery

* Export quotas could harm Guinea's economy, warns

Panmure Liberum's Price

By Maxwell Akalaare Adombila

ACCRA, March 16 (Reuters) - Guinea, the world's top

bauxite producer, is considering introducing export quotas for

mining companies as early as this month, according to four

sources familiar with the matter, as global prices for the

aluminum feedstock retreat and shipping costs climb, squeezing

revenue.

Guinea's bauxite exports jumped 25% in 2025, with more than

70% shipped to China.

Global bauxite prices have fallen 20% to 35% from 2025 highs

on Guinea's surprise shutdowns, said Tom Price, head of

commodities at investment bank Panmure Liberum. Benchmark Guinea

and Australia bauxite cargoes traded at $60 to $70 a metric ton

on Monday.

Two industry sources and a government source said export

quotas for individual mining projects were under assessment,

though no decision has been taken and details remain unclear.

A mining executive said the move would be limited to large

producers. The sources asked for anonymity due to the sensitive

nature of the discussions.

Guinea accounts for more than 40% of the global bauxite

supply and the government has moved aggressively to clean up the

mining sector, which also hosts vast reserves of iron ore, gold

and lithium. Guinea's mines ministry did not immediately respond

to requests for comment.

Freight costs, driven by the war on Iran, are also squeezing

producers, said Patrice L'Huillier, chief executive of Guinea's

state-owned Nimba Mining.

African nations are taking tougher steps to earn more from

their commodities, imposing export controls, higher royalties

and domestic processing requirements.

Price warned that attempts to lift prices by restricting

exports could backfire.

"Guinea's export bans of 2024 should give investors an idea

of where prices can go, if this same government now decides to

control exports via quotas," he said.

Export quotas could flag Guinea as a supply risk and hurt

longer-term demand, Price said.