Guinea to seek more changes to new mining code

 

 

The minister did not specify what changes would be made but said they were aimed at making the country more attractive and competitive in current turbulent market conditions.

 

 

The interim parliament in Guinea, the world's top bauxite exporter which has large-scale iron ore deposits, adopted a new mining code in September.

 

 

But more changes were necessary as market conditions have worsened, according to a source in the mines ministry, who asked not to be named. The source cited falling aluminium prices as an example.

 

 

Guinea is seeking political stability and investment after years of often authoritarian rule. President Alpha Conde won a presidential election late last year but he faced an assassination attempt in July.

 

 

"We are not going to cancel taxes but we are going to improve them to meet the market conditions and be competitive," Mohamed Lamine Fofana told Reuters, without giving any further details.

 

 

"As things are turbulent at the moment, we are looking to see how we can best balance things so the rates are not going to be a break on the development of our country ... We want to promote the processing of minerals," he added.

 

 

According to the newly adopted mining code, companies that process minerals in-country pay 6 percent on all imports while those that export without process must pay 8 percent.

 

 

The new code would give the Guinean state a free 15 percent of mining projects along with the option to purchase an additional 20 percent, bringing total potential share in projects to 35 percent.

 

 

Guinea has said it will also launch a nationwide review of mining contracts to root out "unconscionable provisions" granted by previous rulers, and has toned down Chinese involvement in the resource sector.

 

 

As the world's top exporter of the aluminum ore bauxite and holder some of the best unexploited reserves of iron ore Guinea has drawn billions of dollars in planned investment from miner Rio Tinto and Vale.