Guinea

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2007
Latest Data From 2013
Website EITI Guinea

Overview

Guinea seeks to attract significant foreign direct investments to develop its mining sector, which has the potential to transform the economy of the country. The Ebola outbreak, falling commodity prices and a legacy of corruption and poor governance provide a challenging context.

The EITI has the potential to contribute to improved data collection, knowledge of the sector and improved accounting of sub-national 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.

Production

Collection of production data in Guinea is a major challenge. The 2013 EITI Report notes difficulty in accessing an overview of production of minerals in 2013. In the interim, the EITI process has to potential to support information gathering on production through the companies which have been requested to provide EITI reporting templates.

Natural resources

Guinea is considered rich in natural resources as 28% of government receipts are provided by the extractive sector. The main minerals produced in Guinea are bauxite, gold and diamonds. Information from EITI reporting companies show that the bauxite that is produced in Guinea is mainly destined for export. There also exists significant reserves of iron and nickel. Guinea is a not an oil and gas producer although some exploratory activities took place in 2013, based on contracts that were signed previously.

CommodityReservesUnitSignificance
Bauxite29million tons
Gold5-10thousand tons
Diamonds20million carats
Iron5billion tons
Nickel75million tons
Iron1,427,004thousand metric tons

Revenue collection

The 2013 EITI Report covers profits taxes, dividends, royalties, licenses and concessions fees as well as other significant benefits to government which includes VAT, customs duties and PAYE. State and State-owned company’s share of production were not applicable.

The Guinea 2013 EITI Report aims to report on all revenue streams and payments in 2013. However only company payments greater than 700 million GNF (100,000 USD) would be reconciled with reported government receipts. The government has unilaterally declared its receipts from all other mining companies.

Initializing chart.

Please refer to the EITI Reports and summary data for more information on the scope and number of reporting companies.

Please refer to the EITI Reports and summary data for more information on the scope and number of reporting companies.

Visual is showing revenues by the top 5 companies. Please refer to the EITI Reports and summary data for more information on the scope and number of reporting companies.

EITI Implementation

The multistakeholder group in Guinea aims to continue and strengthen EITI implementation along the value chain, including the awarding of contracts and licenses, monitoring operations, collecting taxes and distributing revenue.

Specifically, it aims to

  1. ensure respect of the legal and regulatory framework in the allocation of permits, licenses and contracts.
  2. initiate the collection and reconciliation of payments made by mining companies with receipts by the government, in accordance with the EITI requirements
  3. make this revenue information available to the wider public through the publication and dissemination of EITI reports
  4. ensure public debate on mining sector revenues to ensure that these are down according to the rules of democracy and transparency
  5. promote ownership of the EITI Standard by the public authorities, companies and civil society. 

EITI Governance

The legal basis for the EITI in Guinea is Decree 2012/014/PRG/SGG which handles the creation, responsibility and organization of the EITI in Guinea. The EITI is governed by three main organs, the Supervisory Council, the Steering Committee and the executive arm, the national EITI secretariat. The government published 12 May 2006 an Executive Decree that approves the EITI Action Plan, creates an EITI Working Group which represents the entire stakeholder’s constituency, and provides a legal basis to the implementation of EITI. The mandate of this working group was renewed by Presidential Decree 5 September 2008. In 2011, the EITI working group was given permanent status by Decree No. 28-2011-EM of 11 June. A draft EITI Law proposal (Transparency and access to information) proposes to repeal national regulations that limit the access to public information for the purpose of making the EITI Report.

Timeline

Validation

Guinea's Validation against the Standard will commence on 1 July 2018. The country is compliant under the 2011 Rules.