David Flanagan’s Arrow Minerals stuck in Guinea licence limbo as Government moves on minerals reclaim

An iron ore hopeful led by Perth mining executive David Flanagan remains locked in a trading suspension as the Guinea government moves to reclaim tenements in the resources-rich country. Arrow Minerals ducked into a trading halt earlier this week after reports emerged 51 mining licences in the West African nation would be repossessed. The explorer owns iron ore tenements north of Rio Tinto’s famed Simandou project and recently executed an agreement to acquire the Niagara bauxite project to the west. Arrow Minerals has not indicated whether its tenements were safe from Guinea’s reclaiming mission, but was expected to be in a position to provide an update on Friday. “The reason for the request is that the company is not yet in a position to make an announcement regarding the media reports in Guinea regarding mineral exploration tenements,” the company told investors on Wednesday. Arrow has not indicated when it expects the suspension to be lifted. Mr Flanagan made a sudden exit from Delta Lithium in late 2023 following a share raid by Chris Ellison-led Mineral Resources and became managing director of Arrow in January 2024. Fellow explorer Lindian Resources confirmed to the market on Monday that its three bauxite projects “remain unaffected” alongside comments from executive chairman Robert Martin that the company “continues to maintain strong relationships with the Government of Guinea.” A renewed surge of interest in Guinea followed the Simandou iron ore mine, due to start producing this year. Complexities surrounding licence issues remain an issue mostly for smaller players. Siguiri Gold canned plans for an IPO after failing to secure licences to develop a gold project from the government. “The vompany has been advised by the Guinean Ministry of Mines that these delays are for administrative reasons only, resulting from the implementation of a new mining title system and supporting processes,” the ASX hopeful said in March. Reports of tighter state controls over mining tenements have become more common throughout the continent. Barrick Mining was forced to close its office in Mali in April after the government blocked the gold major from exporting, arrested company employees and demanded extra tax payments. Former Resolute Mining CEO Terry Holohan was held captive by Mali’s ruling militia for almost two weeks over a nearly $250 million tax demand. The Burkina Faso government also reportedly signalled last year that it would be withdrawing the mining permits from some foreign companies.