This April 17, 2013, Excellence Professor ALPHA CONDE promulgated, by decree D/2013/075/PRG/SGG, the Law L/2013/053/CNT adopted by the National Transitory Parliament (Conseil National de Transition “CNT”) on April 8, 2013 amending certain provisions of the Law L/2011/006/CNT on the new mining code for the Republic of Guinea of September 9, 2011.
The Law L/2013/053/CNT of April 8, 2013 reviews certain important provisions of the new Mining Code adopted on September 9, 2011 whose execution was suspended since September 2011 following certain disagreements between the Guinean Government and mining operators, particularly concerning tax regime which was considered too severe by mining operators. Its promulgation and entry into force is a visible expression of the political will of the Government of Guinea to defrost its mining sector which was sinking into lethargy since three years.
This promises new perspectives for the mining sector which is now provided with a clear legal framework that will allow the start of the reviewing process of mining conventions whose mission has been granted to the technical committee for the review of the mining titles and conventions (Comité Technique de Revue des Titres et Conventions Miniers (“CTRTCM”) created by decree D/2012/041/PRG/SGG of March 26, 2012. As part of its mission, the CTRTCM shall ensure in agreement with the mining companies that the principles included in the new mining code adopted in September 2011 are reflected in the revised conventions.
It is therefore advisable for mining partners to review from now this new legal framework in order to anticipate the strategies for the forthcoming negotiations with the CTRCTM in order for such negotiations to be serenely and successfully pursued, for the benefit of both the mining industry and the Guinean population.
The adoption and promulgation of the newly reviewed mining code coincides with the promotion of the president of the CTRTCM to the head of the electricity company of Guinea. The CTRTCM will experience a new dynamism and a new breath with a new president for the acceleration of the review process of the mining conventions.
The promulgation of the Law L/2013/053/CNT of April 8, 2013 represents therefore an important step of a long way towards the opening of the Guinean mining sector which will need to be completed by the adoption of multiple implementation measures and a model of mining convention.