15 SEPTEMBER 2011BBC NEWS AFRICA
Update - Mining: PM defends radical industry shake-up
Edited by : AL CIRCLE
1 min read
Guinea's new mining code will curb corruption and make more money available for development, Prime Minister Mohamed Said Fofana has said.
The code gives the government a free 15% share in mining companies and demands greater financial transparency.
Guinea, despite being the world's main exporter of the aluminium ore bauxite, is one of Africa's poorest countries.
A democratic government was elected in December, ending the authoritarian and military rule that had blighted the country since independence in 1958.
In an address on national TV, Mr Fofana said the government would hold investors accountable and ensure they paid taxes and royalties.
Foreign companies would have to invest a minimum of $1bn (£633m), he said. The BBC's Alhassan Sillah in the capital, Conakry, says this is intended to prevent companies bribing officials in exchange for cheap mining rights.
Previous mining contracts would be reviewed to ensure there were no irregularities.
Guinea holds half of the world's bauxite reserves.
The code gives the government a free 15% share in mining companies and demands greater financial transparency.
Guinea, despite being the world's main exporter of the aluminium ore bauxite, is one of Africa's poorest countries.
A democratic government was elected in December, ending the authoritarian and military rule that had blighted the country since independence in 1958.
In an address on national TV, Mr Fofana said the government would hold investors accountable and ensure they paid taxes and royalties.
Foreign companies would have to invest a minimum of $1bn (£633m), he said. The BBC's Alhassan Sillah in the capital, Conakry, says this is intended to prevent companies bribing officials in exchange for cheap mining rights.
Previous mining contracts would be reviewed to ensure there were no irregularities.
Guinea holds half of the world's bauxite reserves.
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