The 2011 Guinean Mining Code: Reducing Risks and Promoting Social Benefit in Africa

South African Journal of International Affairs, 2013, Vol. 20, No. 2, pp. 247-270, Routledge.

Posted: 8 Jun 2017

Date Written: July 12, 2013

Abstract

This article analyses some of the key investment terms of the Guinean Mining Code relating to taxation, government equity stake, permitting and environmental and social needs in the light of criticisms from mining companies, who claim it will deter investment. The article argues that projects which provide governments with a fair share of revenues through increased equity participation and taxation provisions and have positive environmental and social provisions constitute a less risky investment for both banks and their borrowing investors, who will benefit from such provisions when they seek project financing, a popular form of financing used in capital intensive extractive industries. The arguments made in this article can be applied more broadly to other African countries which are reforming their mining laws and are, in the process, faced with similar criticisms from the private sector.

Keywords: Africa, Guinea, Sierra Leone, mining law, environment, mining companies, sustainable development, project finance

Suggested Citation

Bhatt, Kinnari, The 2011 Guinean Mining Code: Reducing Risks and Promoting Social Benefit in Africa (July 12, 2013). South African Journal of International Affairs, 2013, Vol. 20, No. 2, pp. 247-270, Routledge.. Available at SSRN: https://ssrn.com/abstract=2978521

Kinnari Bhatt (Contact Author)

Erasmus University Rotterdam ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Register to save articles to
your library

Register

Paper statistics

Abstract Views
124
PlumX Metrics