14 SEPTEMBER 2011Shanghai Metal Market
Rusal Says 'Senseless' to Invest in Guinea Projects; Current Accords Safe
Edited by : AL CIRCLE
2 min read
United Co. Rusal, the largest maker of aluminum, said changes to Guinea's mining laws mean investors will find it "senseless" to agree on new projects for the country, the biggest exporter of the metal's main ingredient.
Rusal's current concession to develop the Dian Dian bauxite deposit and Friguia complex, and its production at the Cie des Bauxites de Kindia mine, are guaranteed under the conditions of agreements the government signed, it said.
Rio Tinto Group and AngloGold Ashanti Ltd. are among mining companies also working in Guinea. Lawmakers on Sept. 9 adopted a mining code that will hand the West African nation 35 percent of local commodity companies and raise customs duties to 8 percent from 5.6 percent, Mines Minister Lamine Fofana said at the time.
The "mining code adopted in Guinea increases considerably tax pressure on mining companies, making it senseless to invest in development and new projects," Moscow-based Rusal said by e- mail. "Any investor of good sense will look for investment opportunities somewhere outside Guinea."
Guinea expects a deal over disputes with Rusal by the end of the year, Reuters said today. The country will review mining companies' contracts to remove "unconscionable provisions" granted by prior administrations, it said, citing Fofana.
Rusal's current concession to develop the Dian Dian bauxite deposit and Friguia complex, and its production at the Cie des Bauxites de Kindia mine, are guaranteed under the conditions of agreements the government signed, it said.
Rio Tinto Group and AngloGold Ashanti Ltd. are among mining companies also working in Guinea. Lawmakers on Sept. 9 adopted a mining code that will hand the West African nation 35 percent of local commodity companies and raise customs duties to 8 percent from 5.6 percent, Mines Minister Lamine Fofana said at the time.
The "mining code adopted in Guinea increases considerably tax pressure on mining companies, making it senseless to invest in development and new projects," Moscow-based Rusal said by e- mail. "Any investor of good sense will look for investment opportunities somewhere outside Guinea."
Guinea expects a deal over disputes with Rusal by the end of the year, Reuters said today. The country will review mining companies' contracts to remove "unconscionable provisions" granted by prior administrations, it said, citing Fofana.
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