Guinea draws up new mining code

Guinean authorities have submitted a new mining code to parliament to improve the management of rich resources in the country with the world's biggest bauxite reserves, an official said Friday.

Mines Minister Mohamed Lamine Fofana told public television the new code had been submitted to the National Transition Council (NTC) on Wednesday, which is performing the role of National Assembly until legislative polls are held.

The NTC was set up in 2010 by a military transition regime, and will have ten days to examine and adopt the new mining code.

Guinea, which is trying to move on after decades of military dictatorships and misrule following its first ever democratic elections in 2010, is also rich in iron ore, diamonds and gold.

The new code will set aside mining reserves for future generations and limit companies to five exploration permits each for "better control" of mineral exploitation, according to documents in front of the NTC.

It will also take into account the increase in mining companies, get the state more involved in the signing of mining contracts and allow local populations to profit from mining activities.

Members of government and officials in the mining ministry will also be forbidden from "having direct or indirect financial interests in mining companies."

The new code advocates that preference be given to Guinean companies in mining zones and a minimum quote of Guinean employees be hired on mining projects, Fofana said.

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