Guinea

Guinea

Guinea seeks to attract significant foreign direct investments to develop its mining sector, which has the potential to transform the economy of the country. Guinea possesses the world's largest reserves of bauxite and largest untapped high-grade iron ore reserves, it holds two untapped world-class high-grade iron deposits in the Simandou and Nimba mountain ranges and benefits from substantial reserves of gold and diamonds. (Source EITI 2018)

In addition, Guinea has fertile soil, ample rainfall, and is the source of several West African rivers, including the Senegal, Niger, and Gambia. Guinea's hydro potential is enormous and the country could be a major exporter of electricity. The country also has tremendous agriculture potential. Gold, bauxite, and diamonds are Guinea’s main exports. International investors have shown interest in Guinea's unexplored mineral reserves, which have the potential to propel Guinea's future growth. 

Guinea is located in West Africa. It is bordered to the west by the Atlantic Ocean, to the north by Senegal, Mali and Guinea Bissau, to the east and south by Ivory Coast, Liberia and Sierra Leone. Guinea is at a turning point after decades of authoritarian rule since gaining its independence from France in 1958. The country held its first free and competitive democratic presidential and legislative elections in 2010 and 2013 respectively, and in October 2015 held a second consecutive presidential election. In April 2013, the government amended its mining code to reduce taxes and royalties. In 2014, Guinea complied with requirements of the Extractive Industries Transparency Initiative by publishing its mining contracts. Currently Guinea is negotiating a new IMF program which will be based on Guinea’s new five-year economic plan, focusing on the development of higher value-added products, including from the agro-business sector and development of the rural economy. Guinea’s economy grew by 6.6% in 2016 and 6.7% in 2017, mainly due to growth from bauxite mining and thermal energy generation as well as the resiliency of the agricultural sector. Guinea's production of bauxite is mainly from the mines at Sangaredi, Kindia and Fria and is arguably low considering the proven reserves. Guinea's key iron deposits are still in the exploration or development phase. Guinea intends to triple its current bauxite production of nearly 20 million tonnes a year by 2020 as a result of significant recent and current investments in the bauxite sector, particularly the prefectures of Boffa and Boké. As a result of new investors and a significant logistic improvement, Guinea has already reached the objective of tripling by 2020 its production to 60,000 million tonnes of bauxite a year. In 2018, an increase of 31 per cent of the bauxite production was recorded. In the same vein, state mining revenues increased from 293 million in 2015 to 355 million in 2018. Also more recently Guinea's iron ore projects have also attracted the attention of some of the world's largest mining companies. (Source: Mining Law Review Edition 8 Guinea, 2019)

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