HomeBase MetalsRevision of mine contracts goes ahead in Guinea

Revision of mine contracts goes ahead in Guinea

The Simandou iron ore
project in a remote
part of Guinea
Conakry, Guinea — MININGREVIEW.COM — 15 October 2008 – The government of the West African state of Guinea – the world’s biggest exporter of bauxite – has decided to continue with its provision of revising mining contracts with foreign mining companies involved in the country.

Reporting from the capital, Bloomberg News quoted Guinea Prime Minister Ahmed Tidiane Souare as confirming this decision.

“The reforms in the mining sector are one of the challenges faced by government and the population,” he told a mining conference here. “It is important to continue with the revision of mining contracts so that the Guinean people can benefit.”

Bloomberg reports that the Rio Tinto Group’s plans to develop a US$6 billion (R55 billion) mine on the country’s Simandou iron ore deposit have been questioned. The company claimed in August that it had  received a letter “purporting to rescind” its concession.

AngloGold Ashanti – Africa’s biggest gold mining company – operates a gold mine in Guinea, while United Co. Rusal and Alcoa Inc. also run operations in the country. BHP Billiton and Global Alumina Corporation are developing an alumina refinery in Guinea.

Bauxite is processed into alumina, the raw material for the making of aluminum.