Guinea now wants to keep an eye in mining products exports

Under article 198 of the Guinean Mining Code, mining companies have to get their production analyzed prior to export. This analysis, supposed to allow the Guinean State to keep an eye on the quality and quantity of mining proudction exports, is not observed. Late Jan. 2023, the ministry of mines and geology called upon the Guinean national geology laboratory to get this legal provision implemented.

Mining companies operating in Guinean only declare the quantity and quality of their production after export. This means that Guinea learns about the quantity and quality of its resources only after companies have exported them. However, mining companies need to pay taxes based on the quantity and quality of exported minerals (extracting and exporting taxes). To sort out the situation, Guinea wants to have article 198 of its Mining Code fully implmented.

Implementing article 198 will oblige mining comapnies to systematically get their production analyzed by the Guinean national geology laboratory before exporting it. This will allow the Guinean State to determine beforehand the quality of mined resources, and through a knock-on effect adequately set related taxes.

 « As you know, the application of this provision will first allow the Guinean State to have control or knowledge of the quality of resources existing withtin the country. It is with regard to remind and share information that we called upon our partners. In a near future, we will work with each entity (mining company) to set a work and collaboration framework with the ministry of mines and geology, in particular with the Guinean national geology laboratory », said the general Secretary of the ministery of mines and geolgy, Bachir Camara.

Guinea, a mining country by excellence, earns little from its resources because of lack of industries to process locally its production. Most mined resources are exported. This creates little added value, and does not foster the socio-economic development of the country.

‘‘It is a matter of national sovereignty’’

To keep on eye on mining exports and earn maximum benefit, the Guinean State will now oblige mining titles and licenses holders to submit samples of geological and mining research results, as well as samples of mining products destined for export to the national geology laboratory.

According to an executive from the ministry of mines, sample analysis is a matter of national sovereignty. To calculate extracting and mining taxes, we mutiply the quantity by the grade and apply a 0.75 % tax to it. Then multiply the total by the London Metal Exchange price. In Guinea, the grade is given by mining companies; the lower this grade, the lower the tax and compagnies will do all to report a low grade».

Leave a Reply