Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

Start by selecting your Topic of interest below. Then choose your Regions and finally refine the exact Subjects you are seeking clarity on to view detailed analysis provided by our carefully selected internationally recognised experts.

4. Results: Answers
Mining
1.
Legal and regulatory framework
1.1
Which legislative and regulatory provisions govern mining in your jurisdiction?
Guinea

Answer ... The mining sector in Guinea is governed by Law 2011/006/CNT dated 9 September 2011 (the ‘Mining Code’), amended by Law 2013/053/CNT adopted in 2013.

The most relevant implementing decrees and orders of the Mining Code are:

  • Decree D/2014/013/PRG/SGG relating to the application of the financial provisions of the Mining Code;
  • Decree D/2014/012/PRG/SGG on the management of mining permits and titles; and
  • Decree D/2014/015/PRG/SGG adopting a template of mining convention.

For more information about this answer please contact: Richard Glass from John W Ffooks & Co
1.2
When was the mining legislation last reviewed?
Guinea

Answer ... The last revision of the mining legislation was in 2013.

For more information about this answer please contact: Richard Glass from John W Ffooks & Co
1.3
What other legislative and regulatory provisions have relevance for mining operations in your jurisdiction?
Guinea

Answer ...

  • The Public Health Code;
  • The Environmental Code;
  • The Investment Code;
  • The General Tax Code;
  • The Customs Code;
  • The Labour Code;
  • The Water Code;
  • The Code on Private and State-Owned Land;
  • The Criminal Code;
  • The Civil Code; and
  • Decree D/2014/14/PRG/SGG dated 17 January 2014 on the environmental impact assessment methodology.

For more information about this answer please contact: Richard Glass from John W Ffooks & Co
1.4
Are there any regional treaties or laws that need to be taken into account?
Guinea

Answer ...

  • The Organisation pour Harmonisation en Afrique du Droit des Affaires Treaty of 17 October 1993, and all uniform acts derived therefrom; and
  • Communauté économique des États de l'Afrique de l'Ouest Directive C/DIR/05/09 dated 27 May 2009.

For more information about this answer please contact: Richard Glass from John W Ffooks & Co
1.5
Which bodies are responsible for enforcing the applicable mining laws and regulations? What powers do they have?
Guinea

Answer ... The main body responsible for enforcing the applicable mining law and regulations is the Ministry of Mines and Geology. The Ministry of Mines and Geology is divided into several departments which, taken as a whole, constitute the mining administration, as follows:

  • The National Geology Authority carries out geological, metallogenic and structural surveys within the national territory, and monitors the geological activities of mining projects that have acquired a mining title.
  • The National Mines Authority controls and monitors all mining projects in progress according to the provisions of the Mining Code and its implementing texts. It is in charge of granting all permits for the opening of granite, sand and laterite quarries.
  • The Bureau National d’Expertise des Diamants, Or et autres Matières Précieuses (BNE) certifies all precious materials and their valuations to the Central Bank of the Republic of Guinea.
  • The Mining Promotion and Development Centre (Centre de Promotion et de Développement Miniers) (MPDC) implements the government’s policy on investment promotion for mineral resource development. In particular, it is in charge of:
    • managing and developing geological and mining data;
    • prospecting mining markets, monitoring their evolution and carrying out related studies;
    • monitoring the public investment programme for the development of mining resources;
    • establishing, evaluating and following up, in relation to the Direction des Affaires Administratives et Financières, on the training and human resources development schedules necessary for the management of mining companies;
    • facilitating interaction between investors and the mining administration; and
    • promoting the exchange of information on mining promotion and development.
  • The Study and Strategy Office carries out a detailed study of all geological and mining issues in the department in collaboration with the decentralised technical directorates. It also elaborates the strategic texts of the Ministry of Mines and Geology and makes projections for future years.
  • The Precious Materials Anti-Fraud Squad establishes strategies to effectively combat diamond dealers, gold dealers and all mining projects in operation that take mineral substances extracted from the Guinean subsoil without going through the Central Bank for certification. It works in close collaboration with the BNE.
  • The Directorate General for Mining Projects.
  • The Inspectorate General for Mines and Geology.
  • The GeoServices Authority.
  • The Managers and Assistant Managers of Mining Projects.
  • The National Mining Commission was established to examine applications for the grant, renewal, transfer, extension and revocation/withdrawal of mining titles. Its powers, organisation, composition and operation are determined by decree of the president of the republic.

    The Technical Committee of Titles was established as an internal committee of the mining administration, and reviews applications for the grant, renewal, continuation and extension, as well as files relating to the revocation/withdrawal, of mining titles prepared by the MPDC. Its powers, organisation, composition and operation are determined by decree of the president of the republic.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    1.6
    What is the regulators’ general approach in regulating the mining sector?
    Guinea

    Answer ... The regulators encourage investment based on the ‘win-win’ principle. Their main objectives are to improve:

    • the management of mining titles;
    • the rules on transparency;
    • the protection of the environment;
    • the promotion of community development;
    • the management of revenues and benefits from the mining sector; and
    • the development of the state’s participation in the sector.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    2.
    Mining industry
    2.1
    How mature is the mining industry in your jurisdiction?
    Guinea

    Answer ... The reforms put in place since the modification of the Mining Code have considerably improved the framework for investment in the mining sector and have positioned Guinea as one of the most attractive destinations for investors in the global mining industry. As a result, Guinea is now one of the main mineral exporters and one of the largest exporters of bauxite.

    The Guinean government, through the Ministry of Mines and Geology, remains strongly committed to making the mining sector the main growth driver of the national economy. In this regard, the challenge is the diversification of mining production, local processing of mining product, capacity building of stakeholders and sustainable management.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    2.2
    What are the key minerals which are mined in your jurisdiction and where is mining activity typically based?
    Guinea

    Answer ... Key minerals in Guinea are bauxite, iron, gold and diamond.

    Mining activity is mainly located in the regions of:

    • lower Guinea (Boké, Kindia, Fria, Boffa);
    • middle Guinea Fouta-Djallon (Tougé, Pita, Mali, Mamou, Dalaba); and
    • upper Guinea (Dinguiraye, Dabola, Siguiri).

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    2.3
    Are any minerals deemed strategic and, if so, what impact does this have?
    Guinea

    Answer ... Yes, bauxite is considered strategic. Guinea is one of the world’s leading producers of high-quality bauxite and has significant world-class bauxite reserves, in terms of both quality and quantity. As a result, Guinea is a major player in the international bauxite market and a major destination for substantial investment. That said, Guinea is implementing a strategy to significantly increase its production.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    2.4
    Who are the key players in the mining industry in your jurisdiction?
    Guinea

    Answer ... The key players in the mining industry in Guinea include RUSAL, Alumina Company of Guinea and Compagnie des Bauxites de Guinée.

    RUSAL is a leading company in the global aluminium industry, producing metal with a low carbon footprint. Some 90% of the company’s aluminium is produced from renewable electricity and by implementing innovative and energy-saving technologies.

    The Alumina Company of Guinea (ACG-Fria) is a bauxite mining company based in Fria Guinea. It is the main aluminium producing company in the country.

    Founded in October 1963, the Guinea Bauxite Company (Compagnie des Bauxites de Guinée (CBG)) is the largest bauxite-producing company in Guinea and one of the largest in the world. It is 49% owned by the Guinean government and 51% owned by Halco Mining Inc – a consortium comprised of Alcoa, Rio Tinto-Alcan and Dadco Investments. CBG aims to explore and exploit the Sangarédi plateau in the Boké region. It currently operates open pit mines in Sangarédi, Bidikoum, Silidara and N’Dangara.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    2.5
    In addition to exploration rights and mining rights, what other mining rights and titles exist (eg, artisanal or small-scale mining rights)?
    Guinea

    Answer ... The other mining rights and titles that exist in Guinea are as follows:

    • mining concessions;
    • prospecting authorisations;
    • quarry search authorisations;
    • authorisations for artisanal exploitation; and
    • authorisations for the exploitation of quarry substances.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.
    Exploration rights
    3.1
    What licences are required to undertake prospecting and exploration activities in your jurisdiction? Do these vary depending on the type of mineral or the location of the activity?
    Guinea

    Answer ... Prospecting activities: Prospecting authorisations for substances of mines or quarries confer on the holder the right to carry out survey work to confirm the existence of one or several mining substances in zones classified as open. However, the holder of the authorisation must disclose the results of its survey work to the state.

    Quarry search authorisations confers on the holder the right to prospect for all quarry substances in the area for which the authorisation is granted.

    Exploration activities: Exploration permits confer on the holder the exclusive right to prospect for the mining substance(s) for which the permit is issued, within the limits of its area and without limitation as to depth. There are two types of exploration permits: industrial exploration permits and semi-industrial exploration permits.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.2
    What requirements must be satisfied to obtain a licence?
    Guinea

    Answer ... The mining administration will verify whether the company or individual has the technical and financial capacity to undertake such exploration activities. This is the main requirement.

    Any requests from individuals or companies that are subject to international sanctions or criminal investigations linked to fraud, corruption or money laundering are automatically rejected.

    In addition to the above, the procedure set out in question 3.3 must be followed.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.3
    What is the procedure for obtaining a licence? How long does this typically take?
    Guinea

    Answer ... The various steps for obtaining a licence are set out below. The whole procedure takes approximately one month for an exploration permit. However, the timeline is just an estimate and maybe subject to administrative delay.

    Prospecting authorisations and quarry search authorisations:

    • The applicant files a request along with the documents supporting its technical and financial capacity to undertake the prospecting activities.
    • The applicant’s request is assessed by the National Geology Authority.
    • Upon a favourable opinion of the National Geology Authority, the applicant’s request is also analysed by the Mining Promotion and Development Centre (MPDC).
    • Upon a favourable opinion of the MPDC, the prospecting authorisation is issued by the National Mines Authority or the quarry search authorisation by the decentralised departments of the National Mines Authority.

    Exploration permits:

    • The applicant files a request along with the documents supporting its technical and financial capacity to undertake the exploration activities.
    • The applicant’s request is assessed by the Technical Committee of Titles.
    • Upon a favourable opinion of the Technical Committee of Titles, the applicant’s request is also analysed by the MPDC. At this point, other technical and environmental assessments of the request may be made by the relevant bodies (ie, the National Mines Authority and the Ministry of Environment).
    • Upon a favourable opinion of the MPDC, the exploration permit is granted by order of the minister of mines and geology.

    If the application is rejected, the minister of mines and geology will notify the applicant accordingly.

    The administrative act through which a licence is granted, renewed, transferred or withdrawn must be published in the Official Gazette and on the website of the Ministry of Mines and Geology.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.4
    Who can own exploration rights in your jurisdiction? Do specific requirements or restrictions apply to foreign operators?
    Guinea

    Answer ... Individual and companies can own mining rights in Guinea. In addition to the justification of the technical and financial capacity to undertake the exploration activities (which is the main requirement), a semi-industrial exploration permit may be granted only to:

    • companies that are wholly owned by Guinean nationals; and
    • foreign nationals of countries which grant the same rights (reciprocity principle) to Guinean nationals.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.5
    What fees and other charges are incurred in obtaining a licence?
    Guinea

    Answer ... The fees depend on the mining substances and are calculated on the basis of the area covered by the prospecting authorisation or exploration permit. They are summarised in the following tables.

    Prospecting authorisation:

    Fixed fees

    • Quarry search authorisation
    • Steps Fees ($/hectares/year)
      Grant 750
      Renewal 750
    • Authorisation for the exploitation of quarry substances
    • Steps Fees ($/hectares/year)
      Grant 2,500
      Renewal 4,000
      Transfer 6,500

    Flat fees of $500, and $1,500 are also paid at the time of the application for a prospecting authorisation and a quarry search authorisation respectively, and subsequently on each renewal.

    Annual fees

    • Authorisation for the exploitation of quarry substances
    • Steps (US$/hectares/year)
      Grant Approx 200
      renewal Approx 310

    Exploration permit:

    Fixed fees

    Minerals Steps Fees per km² ($)

    Bauxite, iron, uranium

    Grant 15
    First renewal 40
    Second renewal 100
    Gold, diamond, gems and associated minerals Grant 20
    First renewal 53
    Second renewal 133
    Basic mineral and other substances Grant 10
    First renewal 27
    Second renewal 67

    Fixed fees are paid one a one-off basis by the permit holder for the whole duration of the exploration permit at the time of grant or renewal.

    A flat fee of $1,500 is also paid at the time of the application for exploration permit and subsequently on each renewal.

    Annual fees

    Steps Fees per km² ($)
    Grant 10
    First renewal 15
    Second renewal 20

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.6
    What is the duration of a licence? What is the process for renewal?
    Guinea

    Answer ... Exploration permit: An industrial exploration permit is granted for an initial period of up to three years. The permit may be renewed twice for up to two years each time, at the request of the permit holder and under the same conditions as apply for grant of the permit.

    A semi-industrial exploration permit is granted for an initial period of up to two years, and may be renewed only once for up to one year, at the request of the permit holder and under the same conditions as applied for grant of the permit.

    Each renewals occurs automatically if the permit holder:

    • satisfied all obligations contained in the order granting the permit; and
    • includes, in its renewal application, a work programme adapted to the results of the preceding period and representing a financial outlay at least equal to that set out in the granting order.

    For the first renewal, the following documents are required:

    • copies of all quarterly reports (ie, 12 reports for industrial permits and eight reports for semi-industrial permits);
    • all results of works and geological, geophysical, geochemical and drilling results, accompanied by corresponding maps;
    • the proposed plan of relinquishment;
    • documents certifying compliance with the obligations contained in the granting order;
    • the work programme, with a budget for the subsequent period; and
    • a detailed schedule of work to be completed.

    For the second renewal, the following documents are required:

    • copies of the eight quarterly reports;
    • all work results and geological, geophysical, geochemical and drilling results, with corresponding maps;
    • the proposed plan of relinquishment;
    • documents certifying compliance with the obligations contained in the granting order;
    • the work programme, with a budget for the subsequent period; and
    • a detailed schedule of work to be completed.

    Prospecting authorisation: A prospecting authorisation is granted for a maximum period of six months, which may be renewed once for up to six months, under the same conditions as apply for grant of the authorisation.

    Quarry search authorisation: A quarry search authorisation is issued for a maximum period of one year, which may be renewed for periods of up to one year, under the same conditions as apply for grant of the authorisation.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.7
    What are the operator’s rights and obligations under the licence?
    Guinea

    Answer ... Prospecting authorisation: The rights of the authorisation holder are:

    • to carry out survey work to confirm the existence of one or several mining substances in zones classified as open; and
    • to freely use the minerals extracted during the prospecting period, to the extent that this use does not fall under the scope of exploitation activities.

    The main obligation of the authorisation holder is to disclose the results of its survey work to the state.

    Quarry search authorisation: The authorisation holder has the right to prospect for all quarry substances in the area for which the authorisation is granted.

    Its main obligation is to disclose the results of its survey work to the state (via the decentralised departments of the National Mines Authority).

    Exploration permit: The permit holder has the exclusive exploration rights for the types of mining substance(s) for which the permit is issued within the limits of its area and without limitation as to depth. During the validity period of the exploration permit, only the permit holder is entitled to an exploitation permit for deposits found within the perimeter of the exploration permit. The right to an exploitation permit becomes effective once the permit holder has:

    • disclosed all results;
    • relinquished half of the initial area of the exploration permit to the state; and
    • completed the files required for the exploitation permit.

    The exploration permit confers on its holder undivided movable property rights, which are not assignable and which cannot be pledged or mortgaged.

    The permit holder is entitled to freely use the minerals extracted during the exploration period, to the extent that this use does not fall under the scope of exploitation activities.

    The obligations of the permit holder are mainly the financial obligations above and fulfilment of its exploration commitments – that is:

    • to commence the exploration activities within six months of issuance of the exploration permit;
    • to prepare activity reports and financial statements; and
    • to comply with its environmental obligations.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.8
    Are there any requirements re relinquishment of an exploration licence or part of the area covered by an exploration licence?
    Guinea

    Answer ... The holder of a licence (permit or authorisation) may relinquish it. Such relinquishment may be total or partial, and must be justified by technical or economic reasons or in case of force majeure. Prior notice of three months is also required.

    However, the holder of a licence remains liable for the payment of all duties and taxes due with respect to the environment and rehabilitation of the site, even after the relinquishment takes effect. The licence holder is also liable for all other obligations contemplated by the Mining Code, its implementing regulation and the terms of reference of the mining agreement.

    Relinquishments for exploration permit are confirmed by order of the minister of mines and geology.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.9
    Can licences be transferred? If so, how and subject to what consents? Do any restrictions or taxes apply to direct or indirect transfers?
    Guinea

    Answer ... An exploration permit cannot be transferred. Any attempt to transfer an exploration permit is null and void and may entail the cancellation of the exploration permit.

    Prospecting authorisations for substances of mines or quarries and quarry search authorisations cannot be transferred.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    3.10
    Does an exploration licence give any priority when applying for a mining right?
    Guinea

    Answer ... Yes – during the validity period of the exploration permit, the permit holder is entitled to an exploitation permit for deposits found within the perimeter of the exploration permit.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.
    Mining rights
    4.1
    How is ownership of mining rights determined in your jurisdiction?
    Guinea

    Answer ... The ownership of mining rights is determined by the type of exploitation permit held. The various exploitation permits in Guinea are:

    • industrial and semi-industrial exploitation permits;
    • mining concessions;
    • artisanal exploitation authorisations for substances of mines or quarries; and
    • exploitation authorisations for quarry substances (permanent or temporary).

    We have focused on industrial and semi-industrial exploitation permits, as these are the main permits in Guinea.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.2
    What are the key requirements in order to apply for a mining right?
    Guinea

    Answer ... The key requirements in order to apply for an industrial or semi-industrial exploitation permit are as follows:

    • The applicant must be a Guinean company (ie, the company holding the exploration permit by virtue of which the application for the industrial or semi-industrial exploitation permit is made must establish a local subsidiary); and
    • The application must be submitted at least three months before the expiry of the exploration permit.

    The procedure for applying for an industrial exploitation permit or a semi-industrial exploitation permit is as follows:

    • The applicant files a request at least three months before the expiry of the exploration permit.
    • The applicant’s request is assessed by the National Mining Commission.
    • Upon a favourable opinion of the National Mining Commission, the applicant’s request is also analysed by the minister of mines and geology.
    • Upon a favourable opinion of the minister of mines and geology, the permit is granted by decree of the Council of Ministers.

    An agreement called a ‘mining convention’ must also be entered between the holder of an industrial exploitation permit and the minister of mines and geology. The mining convention contains further rights and obligations in addition to those provided by the Mining Code. Such additional rights and obligations may consist of a stability regime and tax and foreign exchange provisions.

    The administrative acts (including the mining convention above in the case of an industrial exploitation permit) granting, renewing, transferring or withdrawing a licence must be published in the Official Gazette and on the website of the Ministry of Mines and Geology.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.3
    What fees and other charges are incurred in obtaining a mining right?
    Guinea

    Answer ... Industrial exploitation permit:

    Fixed fees

    Minerals Steps Fees per km² ($)
    Bauxite, iron, uranium Grant 7,500
    Renewal 10,000
    Transfer 22,500
    Gold, diamond, gems and associated minerals Grant 10,000
    Renewal 12,500
    Transfer 30,000
    Basic mineral and other substances

    Grant 5,000
    Renewal 6,250
    Transfer 15,000

    Fixed fees are paid one a one-off basis by the permit holder for the whole duration of the exploration permit at the time of grant or renewal.

    A flat fee of $2,500 is also paid at the time of the application for the industrial exploitation permit and subsequently on each renewal.

    Semi-industrial exploitation permit:

    Fixed fees

    Minerals Steps Fees per km² ($)
    Gold, diamond, gems and associated minerals Grant 4,500
    Renewal 5,625
    Transfer 12,600
    Basic mineral and other substances Grant 3,500
    Renewal 4,375
    Transfer 7,500

    Fixed fees are paid one a one-off basis by the permit holder for the whole duration of the semi-industrial exploitation permit at the time of grant or renewal.

    A flat fee of $2,000 is also paid at the time of the application and subsequently on each renewal.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.4
    What is the duration of a mining right? What is the process for renewal?
    Guinea

    Answer ... An industrial exploitation permit is valid for 15 years, starting from the date of signature of the decree of the Council of Ministers through which it is issued.

    A semi-industrial exploitation permit is valid for five years, starting from the date of signature of the decree of the Council of Ministers through which it is issued.

    An industrial exploitation permit or semi-industrial exploitation permit is renewable upon request of the permit holder. The renewal procedure is the same as that for grant of the permit. The permit may be renewed indefinitely for subsequent five-year periods. However, before applying for renewal, the permit holder must have complied with its obligations under the grant and renewal of the permit, as well as those listed in the specifications or the mining convention.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.5
    Who can own mining rights in your jurisdiction? Do specific requirements or restrictions apply to foreign operators?
    Guinea

    Answer ... Only locally incorporated companies can obtain an industrial exploration permit or a semi-industrial exploration permit.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.6
    Do any indigenous ownership requirements apply in your jurisdiction?
    Guinea

    Answer ... Please see question 4.5.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.7
    What role does the state play in the mining industry in your jurisdiction?
    Guinea

    Answer ... Via the Ministry of Mines and Geology, the state monitors and controls the technical and commercial aspects of the mining industry.

    When an exploitation permit is issued, the state is automatically granted a participation of 15% in the company that holds the permit, free of charge. This participation is exercised by the state through the Société Guinéenne du Patrimoine Minier.

    The state’s participation cannot be sold, assigned or mortgaged, and cannot be diluted by way of a share capital increase in the company that holds the permit.

    The state also has the right to acquire an additional participation in the share capital of the company that holds the permit. However, any participation in excess of the 15% minimum must be fully paid by the state and comply with the terms and conditions of the mining convention. In all cases, the maximum participation of the state cannot exceed 35% (including the automatic 15% participation).

    The following table summarises the state’s participation depending on the mining substances subject to the exploitation permit.

    Minerals Mandatory free of charge state participation (%) Additional payable state participation (%)
    Bauxite 15 20
    Bauxite-alumina 5 30
    Alumina 7.5 27.5
    Aluminium 2.5 32.5
    Iron ore 15 20
    Steel 5 30
    Gold and diamond 15 20
    Radioactive ore 15 20
    Other mineral substances 15 20

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.8
    Are there requirements for the government to enter into a mining development (or similar) agreement in addition to the licences/permits? When is this required or available?
    Guinea

    Answer ... A mining convention must also be entered into between the holder of an industrial exploitation permit and the minister of mines and geology. The mining convention sets out further rights and obligations in addition to those provided by the Mining Code. Such additional rights and obligations may consist of a stability regime and tax and foreign exchange provisions.

    In addition, as regards the interaction between the holder of an exploitation permit and the local community, the permit holder must enter into a local development agreement with the local community residing on or in the immediate vicinity of the area covered by the exploitation permit.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.9
    Can mining rights be transferred? If so, how and subject to what consents? Do any restrictions or taxes apply to direct or indirect transfers?
    Guinea

    Answer ... An exploitation permit may be assigned or transferred, in whole or in part. If the exploitation permit is held by several owners, the consent of all owners is required prior to any assignment of transfer.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.10
    Can security be taken over mining rights?
    Guinea

    Answer ... Yes, exploitation permits may be pledged and mortgaged in order to secure any facility agreement signed by the permit holder in order to cover the exploitation costs.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    4.11
    What provisions apply with regard to closure or abandonment of a mining right?
    Guinea

    Answer ... The holder of an exploitation permit may relinquish it. Such relinquishment may be full or partial and the permit holder must justify it on economic or technical grounds or force majeure. Before the relinquishment, the permit holder must provide the Ministry of Mines and Geology with at least six months’ notice.

    Relinquishment does not release the permit holder from its liability to pay all duties and taxes due, and to comply with all obligations incumbent upon it with respect to the environment and rehabilitation of the developed sites.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    5.
    Surface rights
    5.1
    Does the law of your jurisdiction distinguish between mining rights and surface rights? If so, how does an owner of mining rights acquire surface rights?
    Guinea

    Answer ... Yes, such a distinction exists in the Mining Code. The permit holder cannot occupy the surface or a portion of the surface of the area of the permit which is owned by a third party without that third party’s consent. However, if the permit expressly provides that the permit holder is entitled to occupy the surface inside the area of the permit, such consent is not required.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    5.2
    Where surface rights are acquired, what are the operator’s rights and obligations as regards the landowner? And what are the landowner’s rights and obligations as regards the operator?
    Guinea

    Answer ... The landowner has no rights as against the permit holder. However, the parties can agree on the conditions of use of the surface of the land for the purposes of the mining activities.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    5.3
    Please give an overview of the process for any mandatory acquisition of surface rights (eg, process and time to enforce).
    Guinea

    Answer ... The mandatory acquisition of surface rights follows the same procedure as expropriation for public utility. Expropriation is initiated by the state if it appears that the landowner will not grant consent to the permit holder to use the surface for the mining activities.

    The landowner is, however, entitled to an indemnity further to the expropriation procedure.

    As each expropriation procedure has its own particularities, it is difficult to estimate how long this procedure may take. In all cases, expropriation is generally a time-consuming procedure.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    5.4
    Are any native title issues applicable, either at the exploration licence stage or when a mining right is issued?
    Guinea

    Answer ... The Mining Code does not address native title issues. Normally, and as explained in question 5.3, any issues relating to the landowner are resolved at the beginning of each stage of the activities (ie, exploration or exploitation) through an expropriation procedure if the landowner does not consent to the mining activities.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    5.5
    Are any other rights needed to use the land (eg, zoning permissions or planning requirements)?
    Guinea

    Answer ... No.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    6.
    Environmental issues
    6.1
    What environmental authorisations are required to undertake prospecting, exploration and mining activities in your jurisdiction? Do these vary depending on the type of mineral or the location of the activity?
    Guinea

    Answer ... Irrespective of the type of mineral or the location of the activity, the following are required, depending on the type of permit:

    • Prospecting and exploration: A notice of environmental impact is required. This must be filed at least six months prior to commencement of the exploration activities.
    • Exploitation: A detailed environmental impact assessment is required. This must include:
      • a risk management plan;
      • a care, health and safety plan;
      • a rehabilitation plan;
      • a relocation plan for the population affected by the mining activities; and
      • a mitigation plan of the adverse impacts of the mining activities.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    6.2
    What environmental obligations must the operator observe while the mine is operational?
    Guinea

    Answer ... The environmental obligations of the permit holder are:

    • to mitigate and prevent:
      • the use of the use of harmful and hazardous chemicals;
      • noise emissions which are harmful to human health;
      • unpleasant odours which are harmful to human health; and
      • the pollution of water, air and soil, the degradation of the ecosystem and biological diversity;
    • to prevent or treat any spillages and/or waste, to neutralise or minimise the effect on the environment;
    • to promote and maintain the living conditions and general good health of the population;
    • to prevent and manage HIV/AIDS at the local level;
    • to ensure effective waste management by minimising its production, ensuring that it is entirely innocuous, and disposing of non-recycled waste in an environmentally friendly manner after informing and receiving approval of from the administrations in charge of mines and the environment; and
    • to protect workers from occupational and industrial hazards, further to the provisions on the application of standards and procedures established by the National Health Policy.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    6.3
    What environmental obligations must the operator observe in relation to closure of the mine?
    Guinea

    Answer ... In case of closure, the permit holder must rehabilitate the mining site by removing all facilities, including any production factory on the land. To the extent possible, it must restore the site with respect to safety, agricultural and forestry productivity, and restore the surroundings and landscape as closely as possible to their original state.

    A post-inspection report will be made by the administrations in charge of mines and the environment regarding the proper rehabilitation of mining sites; if the results are positive, the permit holder will obtain a notice of discharge.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    6.4
    What are the potential consequences of breach of these requirements – both for the operator itself and for directors, managers and employees?
    Guinea

    Answer ... The potential consequences of breach of these requirements – both for the permit holder and for its directors, managers and employees – range from fines to imprisonment. The permit may even be withdrawn in case of a major breach. As withdrawal is a very serious sanction, it must be preceded by an analysis of the gravity of the offence, the consequences of the offence and the amount of investment at stake.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    6.5
    Which bodies are responsible for enforcement of environmental obligations?
    Guinea

    Answer ... The minister of mines, in collaboration with the minister of public health and the minister of environment, is responsible for the enforcement of environmental obligations

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    6.6
    What is the regulators’ general approach in regulating the mining sector from an environmental perspective?
    Guinea

    Answer ... The regulators aim to ensure the rational exploitation of mineral resources in harmony with the protection of the environment and the preservation of health. This is a difficult balance to strike, but it remains the main approach adopted by the regulators in regulating the mining sector from an environmental perspective.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    7.
    Health and safety
    7.1
    What key health and safety requirements apply to operators in your jurisdiction?
    Guinea

    Answer ... The application for a mining permit or authorisation must be filed along with a hygiene, health and safety plan which reflects the requirements in terms of personnel safety and health. This plan must include key measures such as screening for nuisance factors, routine medical visits for workers at least once a year and the realisation of the health adjustment plan.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    7.2
    What reporting requirements apply with regard to mining accidents in your jurisdiction?
    Guinea

    Answer ... Any mining accident must be reported to the National Mining Authority and its local representative within 72 hours.

    Any serious or fatal accident that occurs in a mine must be reported to the National Mining Authority, its local representative and the administrative and legal authorities within 24 hours.

    In this case, it is forbidden to alter the conditions of the premises at which the accident occurred, and to move or modify any objects that were there, before the competent authorities have noted their findings in the presence of the representative of the inspector general for labour and a representative of the National Mining Authority, or until the latter has given authorisation.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    7.3
    What are the potential consequences of breach of these requirements – both for the operator itself and for directors, managers and employees?
    Guinea

    Answer ... The potential consequences of breach of these requirement – both for the permit holder and for directors, managers and employees – range from fines to imprisonment. The permit may even be withdrawn in case of a major breach. As withdrawal is a very serious sanction, it must be preceded by an analysis of the gravity of the offence, the consequences of the offence and the amount of investment at stake.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    7.4
    What best practices in relation to health and safety should operators consider adopting in your jurisdiction?
    Guinea

    Answer ... The best practices that should be adopted are:

    • screening for nuisance factors;
    • routine medical visits for workers; and
    • the realisation of the health adjustment plan.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    7.5
    Which bodies are responsible for enforcement of health and safety obligations?
    Guinea

    Answer ... The minister of public health, the minister of labour and the minister of environment.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    7.6
    What is the regulators’ general approach in regulating the mining sector from a health and safety perspective?
    Guinea

    Answer ... The regulators have established measures to prevent or eliminate sources of danger to public safety, the hygiene of miners, the conservation of the mine or quarry or nearby quarries, water sources and public roads. An operator that wishes to obtain a mining title must draft a health adjustment plan for approval and validation by the competent technical departments.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    8.
    Processing, refining and export
    8.1
    What requirements and restrictions apply with regard to the processing or refining (beneficiation) or minerals?
    Guinea

    Answer ... The holder of an exploitation permit is strongly encouraged to establish facilities in Guinea for the conditioning, treatment, refining and processing of mine or quarry substances, including the development of metals and alloys, concentrates or primary derivatives of such mine substances.

    Refining and processing in relation to the development of metals and alloys, concentrates or primary derivatives of these mineral substances or fossils made in Guinea are subject to a prior declaration to the minister of mines and geology.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    8.2
    What requirements and restrictions apply to the export of minerals?
    Guinea

    Answer ... Gold is exported exclusively through purchasers organised within accredited trading agencies. The opening of these agencies is authorised by order of the minister of mines and geology on the recommendation of the Bureau National d’Expertise des Diamants, Or et autres Matières Précieuses (BNE), for individuals or legal entities of Guinean nationality and/or foreign nationality.

    Diamonds and other gems are exported exclusively through purchasers organised within accredited trading houses. The opening of these trading houses is authorised by order of the minister on the recommendation of the BNE, for individuals or legal entities of Guinean nationality and/or foreign nationality.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    9.
    Taxes and royalties
    9.1
    What taxes, royalties and similar charges are levied on mining operators in your jurisdiction? How are these calculated?
    Guinea

    Answer ... The main taxes that are levied on mining operators in Guinea are:

    • income tax at a rate of 35%; and
    • withholding tax on income made by expatriates as well as their personal belongings, at a rate of 30%.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    9.2
    Are any tax incentives available for mining operators?
    Guinea

    Answer ... The main tax incentives available during the exploration phase and construction phase are as follows:

    • a value added tax (VAT) exemption on imports of mining equipment;
    • a minimum flat tax exemption;
    • a professional formation tax exemption; and
    • a land fiscal contribution exemption.

    The main tax incentives available during the exploitation phase are:

    • a minimum flat tax exemption (available for the first three years from the date of first commercial production);
    • a land fiscal contribution capped at 10% (available for the first three years from the date of first commercial production); and
    • a reduced rate of VAT, tax on industrial benefits and registration fees, subject to specific requirements.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    9.3
    What other strategies might mining operators consider to mitigate their tax liabilities?
    Guinea

    Answer ... To mitigate tax liability, the safest approach is to comply with the Mining Code and the General Tax Code. An in-depth analysis of these two statutes (which is not the easiest exercise) is crucial to fully understand the tax aspects of mining activities. Liaising with a local tax firm is strongly recommended for this purpose.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    9.4
    Have there been any significant changes to the taxation rates applicable to mining companies in the last three years?
    Guinea

    Answer ... No.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    10.
    Disputes
    10.1
    In which forums are mining disputes typically heard in your jurisdiction?
    Guinea

    Answer ... If an attempt at reaching an amicable settlement is unsuccessful, mining disputes are generally brought before the local courts or subject to domestic or international arbitration.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    10.2
    What issues do such disputes typically involve? How are they typically resolved?
    Guinea

    Answer ... For reasons of confidentiality, it is difficult to ascertain the types of issues that mining disputes primarily involve. However, please see question 10.3 for one example of a corruption issue.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    10.3
    Have there been any recent cases of note?
    Guinea
    The litigation between BSG Ressources (Bey Steinmetz) and the state of Guinea, which related to a corruption issue and was resolved by agreement between the parties.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    11.
    Trends and predictions
    11.1
    What changes have there been to the mining landscape in your jurisdiction in the last five years?
    Guinea

    Answer ... The major changes have included:

    • the establishment of the new cadastral procedure in 2016,
    • the digitisation of the mining cadastre in 2017;
    • the creation of a one-stop shop for title applicants; and
    • the online publication of mining contracts.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    11.2
    How would you describe the current mining landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?
    Guinea

    Answer ... In its 2019 evaluation of mining governance, the Natural Resource Governance Institute found that the mining titling process and the governance of the Société Guinéenne du Patrimoine Minier were the most notable areas of reform.

    This makes Guinea an ideal location for mining investment. The country has made tremendous progress in laying the foundations for the sustainable and reliable development of the mining sector. The law optimises the benefits for the country and its inhabitants, while strengthening the attractiveness of the country to investors.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    12.
    Tips and traps
    12.1
    What are your top tips for mining operators in your jurisdiction and what potential sticking points would you highlight?
    Guinea

    Answer ... Mining operators should collaborate closely with the Ministry of Mines and Geology. Approaching a local firm to request a legal environment report is also recommended.

    While Guinea has undoubtedly made great strides in its governance of the mining sector, progress remains to be made, particularly in terms of transparency and taxation.

    For more information about this answer please contact: Richard Glass from John W Ffooks & Co
    Contributors
    Topic
    Mining