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New amended Guinea mining code seeks to address investor concerns

Posted on 17 Jun 2013

In the lead up to the G8 Summit (June 17-18, 2013), the Invest in Guinea initiative organised a briefing in London on June 12 to promote the country’s new amended mining code and its role in encouraging transparent trade and long-term win-win partnerships. The objective of the new Mining Code amendments was to strengthen the competitiveness of Guinea in world commodity markets, and align the country with international-standard best practices while addressing the concerns of profitability of the investors as well as taking into account the long term economic development and wellbeing of the Guinean communities.

The briefing was opened by Guinean Senior Minister of Economy and Finance, Kerfalla Yansané followed by a detailed presentation of the mining code amendments by Guinea Minister of Mines, Mohamed Lamine Fofana. There was a series of presentations by Sheila Khama, Director of Extractive Resources Services, ACET for Africa (who also acted as moderator for the event as well as the concluding Q&A session); Thomas Lassourd, Guinea Project Manager, Revenue Watch; Guillaume de Monie, Vice President, Lazard; Kémoko Toure, General Manager, Guinea Bauxite Company (CBG) and Jim Wynn, Head of Finance and Company Secretary, Avocet Mining.

Speaking during his opening remarks, Senior Minister Kerfalla Yansané described Guinea as a paradox, regarded as one of the potentially richest countries in West Africa, yet with no new mining projects in operation in the last 40 years. “Guinea is a country that is naturally endowed with a lot of resources – from agriculture to hydroelectric potential to mining – yet after 30 years of independence is still a poor country,” he remarked. “This poverty is a source of frustration for the people of Guinea, [who are] trapped in a legacy of bad environment and poor policies. This reform is intended to bring about changes and create a vibrant economy and lead Guinea to become an emerging economy in the next 20 years.”

Topics covered during the presentations included transparency and governance as well as the competitiveness and mining potential of Guinea. During her presentation on The Conditions of a Successful Partnership between States and Business, Sheila Khama discussed the importance of responsible investment and balancing transparency with assurances to investors:

“It is important that joint venture partners are clear about the rules of engagement. How are we going to manage this joint venture? When we have this discussion whether it is with shareholders, or mining entities, what is the framework around which we have this discussion?

A joint venture requires not only the investor committing, but also certain assurances that are necessary from the perspective of a sovereign state – assurances to investors. It’s important we have mechanisms for balancing long term economic development in the regions of a country with the short term cycles that drive investors. Being aware of how we reconcile this is important to ensure the effectiveness of [such] joint ventures.” The full list of presentations:

HE Kerfalla YANSANE, Minister of Economy and Finance: Progress and Reforms Since 2010: Mines, A Lever for Transformation of the Guinean Economy

HE Mohamed Lamine Fofana, Minister of Mines and Geology: The Key Points of the Code and Amendments

Sheila Khama, Director of Extractive Resources Services, ACET for Africa: Natural Resources: The Conditions of a Successful Partnership Between States and Business

Thomas Lassourd, Guinea Project Manager, Revenue Watch: Transparency and Governance in Guinea’s Mining Sector

Guillaume de Monie, Vice President, Lazard: Competitiveness and Mining Potential of Guinea

Kémoko Toure, General Manager, Guinea Bauxite Company (CBG) CBG: A Success Story in Development

Jim Wynn, Head of Finance and Company Secretary, Avocet Mining: A New State-Business Relationship

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