new laws

Guinea Revising Its Mining Code, Mines Minister Says
By Mike Cohen - Feb 9, 2011 3:02 AM GMT+1100

Guinea, which held its first democratic transfer of power last year, has started revising its mining laws in an effort to ensure its people benefit from the nation?s mineral wealth, Mines Minister Mohamed Lamine Fofana said.

?The revision of the act has started,? he said at the Mining Indaba conference in Cape Town today. ?It is nearing the stage of validation,? and this will be done in consultation with labor unions and other interested parties, Fofana said.

Guinea holds as much as half of the world?s bauxite, used to make aluminum, more than 4 billion metric tons of ?high- grade? iron ore and ?significant? deposits of diamonds and gold, according to the U.S. State Department. President Alpha Conde, who came to power after winning an election in November, has pledged to bring economic stability to the West African country, where companies such as Vale SA and Rio Tinto Group operate mines.

Guinea?s existing mining codes date back to 1995. Revisions to the law will establish clear rules, ensure investments made in the country are secure and help eliminate ?red tape,? which has proved an obstacle to developing new mines, Fofana said.

?Investors are welcome in Guinea,? he said. ?They will be in good hands.?

On Jan. 24, Conde said Guinea?s government plans to own at least a third of new mining projects in the nation.

Any action taken by the government will be a ?product of consultation,? and comply with the country?s laws, Fofana said. ?Shares taken up by the government are only of consequence when mines are profitable. In most instances, no profits are made or these profits are really meager.?

Guinea is also home to bauxite deposits operated by Russia?s United Co. Rusal, and a gold development run by AngloGold Ashanti Ltd.

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