Why Has Arrow Minerals Halted Guinea Operations Amid Permit Uncertainty?

Operational Suspension Amid Regulatory Ambiguity

Arrow Minerals Limited (ASX, AMD) has continued its voluntary suspension of trading and halted all exploration and development activities in Guinea during the September 2025 quarter. This follows a series of media reports in May 2025 suggesting potential cancellation of exploration permits by the Guinean government, including those covering Arrow’s flagship Niagara Bauxite and Simandou North Iron projects.

Despite these reports, Arrow has not received any formal notification from Guinea’s Ministry of Mines and Geology regarding changes to its mineral tenure. The company remains engaged in ongoing dialogue with government representatives and other stakeholders, seeking official clarification on the status of its permits. However, the timeline for resolution remains uncertain, casting a shadow over project development plans.

Project Development and Study Progress on Hold

Prior to the suspension, Arrow had made significant progress on both projects. The Niagara Bauxite Project had completed extensive drilling and fieldwork, supporting a mineral resource estimate and a scoping study led by SRK Consulting. Similarly, the Simandou North Iron Project had advanced metallurgical testwork and a process plant scoping study, alongside a strategic Memorandum of Understanding with Baosteel Resources Holding for potential future iron ore sales.

However, the release of these study results and any further development activities are contingent upon the renewal and confirmation of exploration permits by the Guinean authorities. With no exploration or fieldwork conducted during the quarter, Arrow has effectively paused its operational momentum pending regulatory clarity.

Financial Prudence and Cost Management

Financially, Arrow reported a cash balance of AUD 3.2 million as of 30 September 2025. The company has implemented a series of cost reduction measures, including executive salary deferrals, staff salary reductions, and the cessation of all project-specific roles as of 30 June 2025. These steps aim to preserve cash reserves during this period of uncertainty, with exploration expenditure reduced to AUD 0.5 million for the quarter.

Arrow’s management emphasizes prudent cash management while awaiting formal updates, with the company estimating approximately 2.3 quarters of funding available at current expenditure levels. The company also retains a minimal security team in Guinea to safeguard assets and samples.

Strategic Positioning and Infrastructure Advantage

Both the Niagara and Simandou North projects benefit from proximity to the Trans-Guinean Railway, a critical infrastructure development expected to facilitate efficient transport of bulk commodities to port. The railway is on track for commissioning in October 2025, potentially enhancing the commercial viability of Arrow’s projects once tenure issues are resolved.

Arrow’s Managing Director, David Flanagan, reiterated the company’s commitment to advancing its projects, highlighting the team’s capability and track record despite the current regulatory challenges. The company awaits formal government communication to clarify its tenure status and plans to promptly update the market upon receipt.