Guinea

EITI Status Meaningful progress

Joined EITI in 2007

Latest Data From 2018

Latest Validation 2018

Last updated 22 November 2021

Overview

Guinea seeks to attract significant foreign direct investments to develop its mining sector, which accounts for 97% of export revenue and has the potential to transform the economy of the country.

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.

Tax and legal framework

The types of permits issued by the government of Guinea for the mining sector include exploration permits, semi-industrial and industrial mining exploration permits and mining concessions. There are also quarrying exploration and production licences, as well as artisanal production licenses.

The Mining Code distinguishes between areas (i) without geological information or for which geological information has not identified a deposit and (ii) areas which have been explored and which cover a deposit which has generated interest by several companies. Licenses for areas which fall into the first category are distributed on a first-come, first serve basis. Licenses which are known to have a commercial deposit are allocated based on a transparent and competitive basis.

In 2015, two companies conducted exploratory work in the oil and gas sector. These were Tullow Oil (Production Sharing Contract signed in 2006) and Simba Energy (PSC signed in 2008). In 2016, Hyperdynamics was the only active company in the Hydrocarbon sector to report payments to the National Petroleum Company, ONAP.

Natural resources

Guinea is considered rich in natural resources as 30% 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 and the upstream sector is still in its infancy. ONAP, the National Petroleum office is committed to carrying out exploration and production projects in the 22 exploration blocks located mainly offshore. Some exploratory activities took place in 2016, based on contracts that were signed previously.


Commodity	Reserves	Unit
Bauxite	29	million tons
Gold	5-10	thousand tons
Diamonds	20	million carats
Iron	5	billion tons
Nickel	75	million tons
Iron	1,427,004	thousand metric tons

Sources: 2016 EITI Report

Revenue collection

The 2016 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 2016 EITI Report aims to report on all revenue streams and payments in the year under review. 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.

View the 2016 EITI Report

Revenues by Company (Top 5 companies only)

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

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