GUINEA Law and Practice Contributed by: Kanto Andrianjakamanantsoa and Tiavina Rakotonaivo, John W Ffooks & Co
5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining In the Republic of Guinea, domestic and interna - tional securities markets are still under process. The Republic of Guinea is currently working on a draft law on securities exchange. The aim of setting up a securities market in the Republic of Guinea is to diversify financial resources and ensure better management of funds. Briefly, domestic and international securities markets in the Republic of Guinea do not currently have an important role in the financing of exploration, development and mining. 5.6 Security over Mining Tenements and Related Assets The legal features relating to security over mining tenements and related assets in the context of exploration, development and mining finance in the Republic of Guinea are as follows: • exploration permits cannot be pledged or mortgaged – nevertheless, the holder of an exploration permit can enter into a technical partnership enabling them to raise the neces - sary capital to finance the exploration activi - ties required for the discovery of a deposit; • exploitation permits may be pledged to secure loans intended for operating purposes; • The mining concession is a divisible real estate right that may be amended and mort - gaged to guarantee borrowings for operating purposes; and • the various mining authorisations cannot be pledged or mortgaged. The Organization for the Harmonization of Business Law in Africa ( Organisation pour l’Harmonisation en Afrique du Droit des Affaires ) (OHADA)) Uniform Act on Security (AUS) gov - erns securities in the Republic of Guinea.
the exploration and mining sectors of the coun - try. 5.3 International Treaties Related to Exploration and Mining The Republic of Guinea is not part of any multi - lateral or bilateral treaties that favour and protect investments in exploration and mining. However, the Republic of Guinea has ratified the Treaty of the Economic Community of West Afri - can States (ECOWAS). In its Article 31, it stipu - lates the need to harmonise and co-ordinate member states’ natural resource policies and programs. ECOWAS includes Directive C/DIR 3/05/09, dated 27 May 2009, on the harmonisa - tion of guidelines and policies in the mining sec - tor. This Directive aims to ensure that ECOWAS member states adopt compatible and coherent mining legislation and policies that facilitate the attraction of regional and national mining invest - ments. It promotes transparent and responsible management of mining resources in member states and proposes standards for environ - mental protection, and it also requires the local population to share in the benefits of mining resources. It is also worth noting that the Republic of Guinea is one of the countries that applies the Kimberley process and the Extractive Industries Transpar - ency Initiative (EITI) standards. 5.4 Sources of Finance for Exploration, Development and Mining The main sources of finance for exploration, development and mining in the Republic of Guinea for investors are loans, own funds and technical partnerships. As far as the state is con - cerned, the Mining Investment Fund finances mining research and training, as well as actions promoting the mining sector.
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