Overview and role of the EITI
Guinea’s economy is highly dependent on the extractive sector, which accounted for more than 24% of government revenues, 91% of exports and 18% of the country’s GDP in 2021. The main minerals produced in Guinea are gold, diamonds and bauxite, with the latter mostly destined for export. The country also has significant reserves of iron and nickel.
Guinea is not an oil and gas producer and the upstream sector is still in its infancy. The national petroleum office, ONAP, plans to carry out exploration and production projects offshore. Some exploratory activities took place in 2016 but were stopped in 2017 following the expiration of the exploration license.
In December 2021, the national oil company SONAP (Société Nationale des Pétroles) was created to manage oil rights and negotiate contracts on behalf of the state. It replaced the ONAP and the National Oil Import Company (SONIP).
Strengthening transparency and governance can help Guinea attract foreign direct investments to develop its mining sector. The EITI has the potential to contribute to improved data collection, knowledge of the sector and improved accounting of subnational payments. These would support concrete reforms adopted by the government, such as the adoption of the mining code, the review of contracts and the regular publication of EITI Reports.
In September 2021, EITI Chair Helen Clark issued a statement on the situation in Guinea following the coup d’état.
Economic contribution of the extractive industries
- to government revenues
- to exports
- to GDP
- to employment
Pioneering new approaches to EITI reporting
Guinea achieves high score in EITI implementation
Statement from the EITI Board Chair on the situation in Guinea
Converting promise to prosperity in Guinea’s mining sector
How EITI countries will publish real owners by 2020
EITI Chair in West Africa
Making mining work for Guinea
Guinea accepted as full member of the EITI
Innovation and policy reforms
- ITIE Guinée has worked with government agencies to improve the timeliness and accessibility of EITI data through systematic disclosures. Information on production, exports and artisanal mining is now disclosed through quarterly government publications and ministry websites. These are among some of the timeliest EITI disclosures globally and significantly improve public oversight of the sector’s management. An open data portal is being developed to centralise access to this information.
- Guinea was an early pioneer internationally in disclosing mining contracts, now publicly available through the government’s public cadastre portal and contract database.
- Guinea has gone beyond the minimum requirements of the EITI Standard to disclose its 2017 infrastructure agreement with China backed by revenues from the mining sector. Key elements of the framework agreement were disclosed for the first time in Guinea’s 2018 EITI Report, providing data to inform public understanding and debate on its benefits and future impacts for citizens.
- Guinea’s EITI 2021 Report noted that the export tax on artisanal gold has been suspended since July 2016, which has led to an increase in gold exports.
Guinea’s mining sector is governed by the 2011 Mining Code, last revised in 2013, that constitutes the legal framework for state intervention in the mining sector. The Ministry of Mines and Geology manages exploration and mining activities and is responsible for the development of legislative and regulatory provisions applicable to the mining sector. Mining companies are subject to a mining tax system in accordance with the 2011 Mining Code, as well as a common law tax system as stipulated by the General Tax Code and the Customs Code.
The hydrocarbon sector is governed by the 2014 Petroleum Code. The Minister in charge of hydrocarbons designs, develops and implements the government's hydrocarbons policy. In addition to the payment of taxes under ordinary law, companies holding petroleum licenses are subject to the payment of sectoral duties and taxes stipulated by the 2014 Petroleum Code.
In accordance with the Mining Code, mining licenses for areas which are known to have a commercial deposit are allocated on a transparent and competitive basis. Licenses for areas without geological information or for which geological information has not identified a deposit are distributed on a first come first served basis. Mining licenses are published via Guinea’s license cadastre.
Oil contracts are awarded through bidding or direct negotiation and managed by the Ministry of Hydrocarbons, in accordance with the Petroleum Code. The code also mandates that licenses be published in a register which can be consulted upon request. In practice, the data are available at the ministry’s national petroleum office, Office National des Pétroles (ONAP). The map of onshore and offshore oil blocks is published on the ministry's website.
The mining and petroleum codes mandate the publication of mining and oil contracts, which are available via a portal hosted by the Ministry of Mines and Geology.
According to the mining and petroleum codes, a beneficial owner is defined as any individual who directly or indirectly owns or controls more than 5% of a company, and such ownership must be disclosed. Although legislation drafted in 2019 to identify and disclose beneficial owners of all companies is still pending enactment, the Centre de Promotion et de Développement Minier will oversee the beneficial ownership register for mining companies. In 2020, the government issued a circular to extractive companies, introducing a beneficial ownership declaration form. Currently, as part of EITI reporting, data on both beneficial and legal ownership is being collected.
A crucial aspect of this process is outlined in Article 4 of the amended EITI decree (decree D/2021/233/PRG/SGG of July 14, 2021), which mandates that all mining, oil and gas companies communicate to Guinea EITI the identity of their beneficial owners, their degree of participation in the capital of the company and the terms and conditions for exercising this participation or controlling said companies. Non-compliance with this obligation can lead to the suspension or withdrawal of the license issued to the defaulting company.
The Mining Code (Article 165) stipulates that tax revenues from mining extraction, production and exports be distributed as follows:
- 80% to the national budget;
- 15% to local budgets of all local authorities;
- 5% to the Mining Investment Fund.
The land royalty (Article 160) is transferred to local authorities as follows:
- 90% to communes;
- 10% to prefectures.
Companies contribute to a Local Economic Development Fund through a tax of 0.5% on bauxite and iron and 1% on other minerals.
Government announces commitment to join the EITI
Voluntary suspended due to political instability
Suspension lift requested
Multi-stakeholder group is formed
Guinea achieved a high overall score (88 points) in implementing the 2019 EITI Standard in February 2022. Its next Validation is expected to commence in April 2024.