Guinea stable, predictable investment destination – Ministry

Guinea is suitable for mining investment, says the Guinea Ministry of Mines and Geology, which will host Symposium Mines Guinea 2017 in Conakry, the country's capital, next month, in partnership with emerging markets-focused business-to-business event organiser AME Trade.

The Ministry says the country and its mining sector have undergone major transformations since 2011 to make Guinea a competitive and viable destination for investors, emphasising that the regulatory and legislative environment is now stable and predictable.

Owing to the importance of mining in the country, the Ministry of Mines and Geology is taking the necessary steps to implement strict good-governance policies regarding the regulation and promotion of transparency in the country’s mining industry to secure the position of Africa’s most investor-friendly mining destination.

The mining industry impacts significantly on the country’s economy, with mineral production accounting for about 15% of the country’s gross domestic product (GDP) in 2016.

Mineral exports of bauxite, diamonds and gold accounted for 80% of Guinea’s total exports last year.

“The value of the industry is steadily increasing,” the Ministry tells Mining Weekly.

To create a better framework for investment, the Ministry explains that it undertook a set of flagship actions on September 1, 2016, which included the modernisation of the country’s mining cadastre with the establishment of a new procedure for the granting, renewal, transfer and withdrawal of mining titles and authorities.

Creating a mining cadastre for integrated mining projects provides the mining industry with an Internet portal covering all relevant information on permits and authorisations. In total, 107 permits and various authorisations have been issued by 13 Ministerial departments during 2016 and can be found on the portal.

A joint decree harmonising the rates and tariffs of fixed duties, taxes and the royalties resulting from the granting, renewal, extension, transfer and/or the mediation of mining titles and authorisations has also been revised and put into effect as of October 2016, notes the Ministry.

The implementation of the Master Plan for Mine-Related Infrastructure Development, introduced in 2010, is being pursued, notably through the signing of the agreement to pool mine-related infrastructure between major companies, such as bauxite company Cie des Bauxites de Guinée,

Guinea Alumina Corporation, aluminium company Rusal and the State, in April 2016, it adds.

A “fully operational” National Mining Commission has been appointed to increase transparency. The consolidation of the reforms, initiated since 2010, gained investments worth more than $2-billion in the Boké region in 2016.

Industry Challenges

The Ministry says the most significant challenge facing Guinea’s mining industry is the lack of infrastructure.

Government has devised two approaches to resolve the problem: encouraging not only public–private partnerships to finance the infrastructure needed to support mines but also the sharing of existing and future infrastructure by various sectors.

“The country is also in serious need of comprehensive geological surveys and sophisticated testing laboratories.” Mobilising new funding through the public and private sectors will allow for geological surveys throughout the country to take full advantage of the mineral potential, it adds.

“In the near future, Guinea aims to create cost-effective infrastructure for electricity and transport to provide a stable and constructive workforce, as well as continue to offer an enabling environment for investors.”

Potential for Growth

The Guinean bauxite industry is experiencing rapid and sustained growth, with $2.4-billion having been invested in the country’s bauxite industry in 2016. At this rate, production could reach 60-million tons to 80-million tons by 2020, notes the Ministry.

Guinea lies on the Birimian gold belt, whose full potential has yet to be unlocked. Nonetheless, the country’s openpit gold mines are becoming important players in its economy, with government looking to increase Guinea’s gold production while supporting companies in the process.

The Promotion and Mining Development Centre provides easy licensing for qualified companies eager to invest and quickly ramp up gold mining activities in the country, the Ministry points out, adding that government is eager to provide full support for all mining projects.

Mining Conference
To communicate these good-governance policies, the Ministry of Mines and Geology will, in collaboration with AME, host the fifth Symposium Mines Guinée.

The conference, which will run from May 9 to 11, reflects government’s vision of transformational investment through its theme: The Mining Sector: The Key to Transforming the National Economy for the Benefit of All Actors.

With special focus sessions on gold, bauxite, diamonds and iron-ore, this year’s agenda will also explore how to attract mining investments, finance mining activities and provide a geological overview of the country.

The programme will further cover how partnerships in infrastructure can act as a catalyst for growth in the mining sector, and how to empower the sector through an adequate energy supply, mining policies and their impact on economic growth, as well as development and regulation of small-scale and artisanal mining.

Social and physical environmental protection and corporate social responsibility programmes will also be a focus.

Symposium Mines Guinée 2017 will also delve into government’s plans for the development of world-class laboratories and unveil new technology that will be used for insightful research in expanding the country’s mining sector.

Geological data will also be presented by local permit holders looking to secure investment or project partnerships, while data will be made available before the event for potential investors to study.