International Scenario: the situation in Guinea

The coup in Guinea and the repercussions on the availability of raw materials

The recent vicissitudes that have affected the Republic of Guinea have once again turned the spotlight on the impact of the shortage of raw materials that is affecting the entire global economy. In fact, the African country involved in a military coup in recent days is the world's second largest producer of bauxite, a rock that is the main source for the production of aluminum, as well as the holder of a quarter of global reserves.

While on the one hand the pandemic has contracted the demand for some services, on the other hand it has literally caused the demand for goods to explode, causing a collapse in the availability of some raw materials (especially copper, iron ore and steel) and a significant increase in the price. of purchase.

The main companies operating in the area, the producers and owners of bauxite mines in Guinea, reassure investors stating that the coup is having no impact, if not minimal, on the business nor is it leading to interruptions in supplies. However, the scenario of strong instability that is affecting the country worries investors and consumers about the supplies of the raw material necessary for the production of the metal and the risk that geopolitical tensions could compromise production and delay supply.

The topic will not be exhausted in a short time, indeed it is desirable and necessary to open up to new and necessary reflections: let's not forget that the digital transition and technological innovation, hot topics and on the agenda in the national and international political agenda, in the The next few years will significantly increase the demand for some raw materials hitherto little used but essential to start a strong digital revolution by contracting the supply and entailing complexity in supplies and high costs for buyers.

The prerequisites for the development of critical situations are all there: the pandemic, the increase in cyber attacks, the new Taliban government in Afghanistan and now the recent events in the Republic of Guinea contribute to exacerbate risk scenarios and limit mobility in areas of the world historically and strongly tormented and unstable, bringing with it significant impacts and effects not only geopolitical but also socio-economic.

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