20100108

DAKAR (Reuters) - World number one aluminium producer RUSAL is gearing up for an initial public offering in Hong Kong later this month.

One of the key supply centres for its smelters is Guinea, a small West African country in the grip of severe political uncertainty since a failed attempt to kill its military junta leader in December.

RUSAL says Guinea, which holds two-thirds of the world's bauxite deposits is of "high strategic importance" as it aims for self-sufficiency in raw materials.

IS RUSAL ABLE TO OPERATE NORMALLY?

The government banned RUSAL from exporting for almost a week in September during a tax dispute, but the other interruptions to, or reductions of output last year, were the result of strikes or RUSAL's own decisions.

Junta chief Captain Moussa Dadis Camara was hostile toward foreign mining firms. But since he was evacuated to Morocco for treatment following a December 3 assassination bid, political involvement in the mining sector has halted.

This week, acting head of state Sekouba Konate said Guinea will move to civilian government which, if successful, would effectively take Camara out of the picture. A post-Camara administration may in time want to review mining contracts, but its highest immediate priority would be to hold the country together while preparing for elections.

A RUSAL executive in Guinea said this week said investors would be reassured by a discussion with the government.