The mining company Dinguiraye, a subsidiary of the multinational North Gold operating gold deposits in the region of Upper Guinea, including lero in Dinguiraye prefecture, received this Monday, January 22, 2018 in Conakry signing a third rider. The said agreement was initialed in the premises of the Ministry of Mines between the Guinean Mines Minister Abdoulaye Magassouba Egveny Tulubensky and Chairman of the Board of Directors of Northern Gold.
While the first operating agreement between the state Guinea to SMD, expires in 2019, SMD wanted to ensure investments by injecting 363 million for a period of 15 years. This investment will according Egveny Tulubensky, BCP North Gold to expand and increase production capacity in the years ahead by changing the production process through the exploration and exploitation of deep veins within the new development mines.
If the objective for Nord Gold was to solidify its bases in Guinea, the challenge for the Guinean State was the renegotiation and updating of the Convention in accordance with new regulations, including the revised mining code.
According to the Minister Guinean mining, Guinea wanted to recover the shares that were lost in 2006 in the company “Guinea wanted to recover the shares that were lost in 2006, and the company agreed that Guinea can recover 15 % stake in this company, without paying any penny. ”
“Jobs, he says, will be preserved, there will be revenues for the state, but beyond this, we had to align, as much as possible, the company’s agreement to the new mining code”
Therefore, according to Abdoulaye Magassouba, the company agreed, instead of paying 0.4% of turnover in terms of contribution to local development, to spend 1% from 2019. Also the company agreed to raise the level of the surface tax that will pass by FG 5,000 km² to 150 dollars per km².
The mines minister reassures also that the issue of local content and issues related to the environmental impact were taken into account in the negotiations of this new amendment.
The transfer of 15% stake of the Guinean State SMD capital will be in two tranches in the two years following the signing of the amendment 3.
