Guinea’s economy is highly dependent on the extractive sector, which accounts for more than 30% of government revenues, 79% of exports and 18% of the country’s GDP in 2018. 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 a 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.
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.
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 are 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.
Extractive sector data
Production and exports
Top paying companies
Extractive sector management
Tax and legal framework
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.
Licenses and contracts
In accordance with the Mining Code, mining licenses for areas which are known to have a commercial deposit are allocated based 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.
The mining and petroleum codes define a beneficial owner as any individual who owns or controls (directly or indirectly) more than 5% of a company, and stipulate that these must be disclosed.
In 2019, the government drafted legislation on identifying and disclosing beneficial owners of all companies, which is pending enactment. The Centre de Promotion et de Développement Minier will oversee the beneficial ownership register for mining companies. In 2020, a beneficial ownership declaration form was sent by circular to extractive companies. Data on beneficial and legal ownership is currently being collected as part of EITI reporting.
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.
ITIE-Guinée is administered by the Guinea Multi-Stakeholder Group (MSG), also known as the Comité de pilotage.The MSG is chaired by Mr. Mohamed Lamine Sy Savane, Secretary General of the Ministry of Mines.