Guinea re-evaluates mining contracts

Guinea re-evaluates mining contracts

Business in Africa

13th April 2007

Conakry - Guinea, the world's top bauxite exporter, is set to review all contracts signed with foreign firms operating in the west African country, government has said.

Spokesman of the two-weeks old government, Information Minister Justin Morel Junior said authorities are to "review all mining agreements, if need be amicably, but if not, we will hire legal firms to defend the interests of the country".

Junior made the announcement on Wednesday night on state television after the first cabinet meeting of the new Guinean government led by a consensus Prime Minister Lansana Kouyate, appointed late February to end weeks of a bloody general strike.

Unions launched sweeping anti-government protests in January paralysing the poverty-stricken but mineral rich country of 9.4 million people, against the ailing President Lansana Conte.

After weeks of bloody street protests which claimed more than 100 lives of mainly civilians, Conte bowed in and appointed Lansana Kouyate as a prime minister of consensus.

Kouyate formed his government on March 28.

Guinea has at least one third of the world's bauxite reserves, a mineral used to produce aluminium.

Observers say the new government believes the mineral exploitation contracts signed with foreign companies and reviewed several times, were made on giveaway terms in this country rated the most corrupt in the world.

Guinea, according to global anti-corruption watchdog Transparency International, is Africa's most corrupt country.

The former French colony is rated among the world's 20 poorest.