GUINEA Law and Practice Contributed by: Sarah Razafindrafito and Tiavina Rakotonaivo, John W Ffooks & Co
wash gold in industrial mining, is one concrete exam - ple that leads to conflict between communities and mining companies. This conflict has been mentioned several times by the local and prefectural authorities as one of the major conflicts affecting the locality of Lero and Siguirini in the Republic of Guinea. 3. Climate Change, Energy Transition and Sustainable Development in Mining 3.1 Climate Change Effects Despite the implementation of a National Climate Change Strategy (NCCS) in the Republic of Guinea, it must be said that it takes time for initiatives that deal with climate change to have a significant impact on the mining industry. 3.2 Climate Change Legislation and Proposals Related to Mining There is not currently any climate legislation related to mining in the Republic of Guinea. Moreover, the authors are not aware of any potential climate change legislation that is being discussed in the country. 3.3 Sustainable Development Initiatives Related to Mining The National Sustainable Development Strategy of the Republic of Guinea includes a commitment to reform the governance of the mining sector of the country. The governance of mining resources will be orient - ed more towards the interests of local communities, minimising the environmental impact of mining and improving transparency and accountability in order to contribute to real, sustainable and equitable economic growth. To achieve these objectives, the following ini - tiatives have been contemplated: • better integration of the mining sector with the other sectors necessary for sustainable develop - ment; • promoting local processing of raw materials; • improving the effectiveness of assessments of environmental impact on the environment; • developing mechanisms to compensate for biodi - versity losses; and
• ensuring strict compliance with environmental con - formity and local content. 3.4 Energy-Transition Minerals The authors are not aware of any government or leg - islative initiatives related to the increasing demand for energy-transition minerals in the Republic of Guinea. 4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes On the one hand, holders of exploration permits are entitled, throughout the period of exploration, to exemption from: • value added tax (VAT) on imports of equipment, materials, machines and consumables before the beginning of the exploration phase;
• the annual minimum tax; • the business licence fee; • contributions to professional training;
• the single land tax; and • the apprenticeship tax.
To benefit from the foregoing exemptions, a mining list must be filed before the start of the exploration phase, in accordance with the provisions of the Min - ing Code. The duration of these exemptions is limited to the duration of the exploration phase, and all other provisions of the General Tax Code in the Republic of Guinea apply with full effect. It is also worth noting that holders of an exploration permit are subject to the statutory reporting obligations set out in the General Tax Code (Article 171-I) On the other hand, holders of a mining exploitation title who enter into the exploitation phase are eligi - ble – for three years from the date of first commercial
production – to exemption from: • the annual minimum tax; and
• the single land tax (Article 175 of the Mining Code). During the exploitation phase, the holders of an exploi - tation permit are subject to all taxes other than those
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