The South–South investment that never happened: Vale in Guinea

Mathias Alencastro; Eric Cezne

doi:10.1016/j.exis.2022.101147

The South–South investment that never happened: Vale in Guinea

Mathias Alencastro^*, Eric Cezne^*

^*Corresponding author for this work

International Development Studies

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

This article explores the troubled and unsuccessful entry of the Brazilian mining corporation Vale SA in Guinea, which was motivated by ambitions to develop the coveted Simandou iron ore deposits. In doing so, it offers a useful complement to this special issue's focus on the firm's (dis-)engagement in Mozambique and provides a fuller portrait of the company's extractive errands in Africa, from rise to fall. We examine the relationships among key political and economic actors – namely Vale, BSGR, and the Brazilian and Guineans governments – and their interactions in the pursuit of an extractive project, but in this case one that never happened. We analyze how Vale's investment in Guinea was formed and signified, particularly among Brazilian political and business leaders, and how it crumbled, assessing the interactive influences of Guinean ruling elites and the role of wider economic and political disputes. The Guinea fiasco, we observe, changed the overall strategy of the Global South's foremost mining company. This article contributes to the (critical) literatures on the politics of the extractive industries and of South–South investment, particularly in the context of Brazil–Africa relations.

Original language	English
Article number	101147
Number of pages	12
Journal	Extractive Industries and Society
Volume	13
DOIs	https://doi.org/10.1016/j.exis.2022.101147
Publication status	Published - Mar 2023

Bibliographical note

Funding Information:
The research described in this article was generously supported by a São Paulo Research Foundation (FAPESP) grant (No. 19/00844-0) and the European Research Council-funded Africa’s Infrastructure Globalities (Infraglob) project (No. 759798). The authors are grateful for the astute advice and feedback from two anonymous reviewers and the participants of the Politics and Sociology of Africa research seminar at the University of Bayreuth. They also thank Margot Stoete at Utrecht University for drawing the map included in this publication. Any errors and omissions remain our own.

Funding Information:
The research described in this article was generously supported by a São Paulo Research Foundation (FAPESP) grant (No. 19/00844-0) and the European Research Council-funded Africa's Infrastructure Globalities (Infraglob) project (No. 759798). The authors are grateful for the astute advice and feedback from two anonymous reviewers and the participants of the Politics and Sociology of Africa research seminar at the University of Bayreuth. They also thank Margot Stoete at Utrecht University for drawing the map included in this publication. Any errors and omissions remain our own.

Publisher Copyright:
© 2022 The Author(s)

Keywords

Vale
Guinea
Brazil
Mining
South-South relations

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10.1016/j.exis.2022.101147Licence: CC BY

1-s2.0-S2214790X22001113-mainFinal published version, 1.37 MBLicence: CC BY

Cite this

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title = "The South–South investment that never happened: Vale in Guinea",

abstract = "This article explores the troubled and unsuccessful entry of the Brazilian mining corporation Vale SA in Guinea, which was motivated by ambitions to develop the coveted Simandou iron ore deposits. In doing so, it offers a useful complement to this special issue's focus on the firm's (dis-)engagement in Mozambique and provides a fuller portrait of the company's extractive errands in Africa, from rise to fall. We examine the relationships among key political and economic actors – namely Vale, BSGR, and the Brazilian and Guineans governments – and their interactions in the pursuit of an extractive project, but in this case one that never happened. We analyze how Vale's investment in Guinea was formed and signified, particularly among Brazilian political and business leaders, and how it crumbled, assessing the interactive influences of Guinean ruling elites and the role of wider economic and political disputes. The Guinea fiasco, we observe, changed the overall strategy of the Global South's foremost mining company. This article contributes to the (critical) literatures on the politics of the extractive industries and of South–South investment, particularly in the context of Brazil–Africa relations.",

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author = "Mathias Alencastro and Eric Cezne",

note = "Funding Information: The research described in this article was generously supported by a S{\~a}o Paulo Research Foundation (FAPESP) grant (No. 19/00844-0) and the European Research Council-funded Africa{\textquoteright}s Infrastructure Globalities (Infraglob) project (No. 759798). The authors are grateful for the astute advice and feedback from two anonymous reviewers and the participants of the Politics and Sociology of Africa research seminar at the University of Bayreuth. They also thank Margot Stoete at Utrecht University for drawing the map included in this publication. Any errors and omissions remain our own. Funding Information: The research described in this article was generously supported by a S{\~a}o Paulo Research Foundation (FAPESP) grant (No. 19/00844-0) and the European Research Council-funded Africa's Infrastructure Globalities (Infraglob) project (No. 759798). The authors are grateful for the astute advice and feedback from two anonymous reviewers and the participants of the Politics and Sociology of Africa research seminar at the University of Bayreuth. They also thank Margot Stoete at Utrecht University for drawing the map included in this publication. Any errors and omissions remain our own. Publisher Copyright: {\textcopyright} 2022 The Author(s)",

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AB - This article explores the troubled and unsuccessful entry of the Brazilian mining corporation Vale SA in Guinea, which was motivated by ambitions to develop the coveted Simandou iron ore deposits. In doing so, it offers a useful complement to this special issue's focus on the firm's (dis-)engagement in Mozambique and provides a fuller portrait of the company's extractive errands in Africa, from rise to fall. We examine the relationships among key political and economic actors – namely Vale, BSGR, and the Brazilian and Guineans governments – and their interactions in the pursuit of an extractive project, but in this case one that never happened. We analyze how Vale's investment in Guinea was formed and signified, particularly among Brazilian political and business leaders, and how it crumbled, assessing the interactive influences of Guinean ruling elites and the role of wider economic and political disputes. The Guinea fiasco, we observe, changed the overall strategy of the Global South's foremost mining company. This article contributes to the (critical) literatures on the politics of the extractive industries and of South–South investment, particularly in the context of Brazil–Africa relations.

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VL - 13

JO - Extractive Industries and Society

JF - Extractive Industries and Society

M1 - 101147

ER -

The South–South investment that never happened: Vale in Guinea

Abstract

Bibliographical note

Keywords

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