CONAKRY, Guinea—The government of Guinea’s announcement that it will systematically review its mining contracts can help enhance the rule of law and accelerate economic development, the Revenue Watch Institute said today.
“We congratulate the government for developing a clear and systematic plan for examining contracts, which can increase the country’s benefits from mining and improve the climate for investment,” said Karin Lissakers, director of Revenue Watch. “The plan gives Guinea an opportunity to get a better deal for its minerals while treating companies fairly. It also promotes accountability, through regular public reports and allowing citizen participation in agenda-setting.”
Guinea is rich in bauxite, iron ore and other minerals, and better regulation and governance of the mining sector are keys to accelerating economic development. According to the government, the contract review will examine existing agreements, many of which were signed under non-transparent conditions and do not provide the country with economic benefits commensurate to the value of the resources.
Under the announced plan, a panel of technical experts will assess whether the contracts align with international norms, comply with the terms of the laws in place at the time of their signature, and correspond with the principles of the new mining code passed in 2011. The technical committee’s recommendations will be submitted to a committee of four government ministers, which will have the power to cancel contracts that were improperly obtained or to call the companies to the table for renegotiations.
Revenue Watch encourages mining companies to work actively with the government and cooperate in the review process, to increase the long term stability of their investments It is also important for the government to live up to the commitments made in the announcement, and to keep the public well informed about the progress of the review.
The review process follows the National Transitional Council’s approval of the new mining code in September 2011, which included several key “best practices,” including requirements for the publication of new contracts and detailed measures to help prevent corruption.
LEARN MORE
- Terms of Reference: Guinea Contract Review Process | Français
- Mise en place d’un processus d’examen des contrats miniers de standard international en Guinée (Africaguinee.com)
Contact:
Robert Ruby (New York)
Head of Communications
rruby@revenuewatch.org
+1.917.443.2392
