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Guinea to review mining contract - Mr Alpha Conde

Steel News - Published on Tue, 27 Dec 2011

Reuters cited Mr Alpha Conde President of Guinea as saying that the country will review mining contracts and cut the size of the armed forces during 2012.

The moves are aimed at boosting the West African state economy and cementing its fragile stability, but if done poorly could backfire by angering international investors as well as the country unruly soldiers.

Guinea is the world largest supplier of the aluminum ore bauxite and has vast deposits of iron ore that have drawn billions of dollars in planned investment, but it is struggling to emerge from decades of political turmoil.

Mr Conde said \"The new projects that lie ahead focus on three priorities, strengthen national unity, improve the daily lives of Guineans and transform the economy. He said the projects would include revising all of the country\'s existing mining contracts to ensure they conform with a recently overhauled mining law, and putting some 4,000 members of the armed forces into retirement.”

Mr Conde said \"The changes taking place are aimed at cleaning up the business environment in a way that renews the confidence of our international partners, who are coming to Guinea in greater and greater numbers.\"

He added he planned to shrink the size of the military as part of a broader security reform effort. He also said \"The retirement of more than 4,000 members is in the works with a support plan for each retiree. My hope is to revive the tradition of the Guinean army which was once the pride of Africa.\"

Guinea Mines Minister Mr Mohamed Lamine Fofana first signalled plans for a mining contract review during an interview with Reuters in September shortly after a mining law doubling the state share in projects was adopted.

Guinea bauxite and iron ore riches have attracted some of the world biggest mining companies including Australian heavyweight Rio Tinto and Brazil\'s Vale.

(Sourced from Reuters)

Posted By : admin on Tue, 27 Dec 2011
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