The Republic of Guinea is prepared to work with international mining investors to develop the country’s mining sector, says Minister of Mines and Geology Dr Kerfalla Yansane.

“We want to build strong partnerships for mutual success and we are predicting $50-billion in mining-sector investment in the next decade,” he says.

Yansane adds that the development of Guinea’s mining industry is being fast-tracked and that the country is willing to continue working with all the reputable mining companies currently working in Guinea. The country is also ready to welcome new investors to all key sectors of the industry.

Guinea holds the world’s largest deposits of bauxite, with reserves estimated at 40-billion tonnes, with a grade higher than 40%. The country also holds the largest untapped iron-ore deposits in the world – 20-billion tonnes of reserves – as well as 700 000 t of gold deposits and 30-million carats of diamond deposits, with the potential for other primary deposits to be discovered.

Yansane says the investment climate in the country has been improving as it has been undergoing reforms, including the strengthening of democracy in the country. “After the Presidential elections in 2010, Guinea now has a Parliament after the first free, fair and peaceful legislative elections in 2013.”

Since then, sound economic policies have led to macroeconomic stability, including the stability of the national currency and a steady decrease of inflation from 23% in 2011 to 9.6% in June, 2014.

“In addition to better public finance management, sweeping reforms have been implemented across all key sectors, including energy, agriculture, business environment and, particularly, mining,” says Yansane.

He adds that there will be more tax incentives to help transform local business and to make the mining sector more competitive which, among other preconditions, will require government to publish all mining contracts. Mining companies will also be compelled to sign a code of good conduct that commits them to abstain from corrupt business practice.

“We will also be undertaking a transparent review of previous mining contracts, with the support of international institutions and law firms, in a spirit of long-term sustainability and win-win partnerships with investors.”

Yansane points out that there has been significant and steady progress in terms of the mining sector’s transparency and accountability. Consequently, in July, Guinea became a full member of the Extractive Industries Transparency Initiative – a global coalition for openness and accountable management of revenues from natural resources.

The country has also taken concrete action to support the reform of the country’s legal framework. In May, Guinea and its partners signed the investment framework for the $20-billion Simandou South iron-ore project, which will be the largest integrated iron-ore and infrastructure project ever developed in Africa.

The partners include Rio Tinto, Aluminum Corporation of China and International Finance Corporation.