[miningmx.com] — GUINEA’S new mining code would give the state a free 15% stake in projects with an option to acquire another 20%, according to a draft obtained by Reuters on Tuesday.
The mining code would also toughen up procedures for securing mining permits, create a new “Local Development Fund” fed by an existing 0.5% to 1% levy on minerals sales, and provide new tax breaks for companies engaged in exploration and mine construction.
According to the draft code, taxes on iron ore and bauxite would be based on the London Metal Exchange LME 3-month selling price rather than FOB pricing.
The government of the West African bauxite exporter is gathering feedback on the draft from miners, and is hoping to finalise the code by the end of June to replace the current law which dates from 1995.
Rio Tinto and RUSAL are among the biggest international mining firms working in the country.
