AIG Appraisal.... Extractives Partnership between the USA and Guinea Conakry

Rough Diamond Buying Group; American International Gemologists

Impression

Guinea Conakry has a population of just over eleven million in an area the size of the State of Oregon.  It is the world's largest producer of bauxite and is about to be the world’s third largest producer of iron ore. Emergent mineral resources include: limestone, manganese, nickel and uranium. Guinea's mining sector generates almost 80% of overall export earnings and 26% of GDP.

In early July 2014 Guinea was accepted as 'EITI Compliant' by the international Extractive Industries Transparency Initiative at its meeting in Mexico City. At the meeting chaired by Clare Short, she congratulated Guinea for its sustained commitment & leadership in the implementation of EITI.

As a country implementing the EITI, Guinea must regularly disclose the government's revenues from natural resources. Compliance necessitates that the country meets each and every requirements of the EITI Standard. This standard was adopted in 2013.

Cheick Kante; Country manager for "The World Bank in Guinea also congratulated Guinea on achieving EITI Compliant status after many years of hard work.

This now brings us to Diamonds; Guinea is also an important source of alluvial, artisanally mined diamonds. In 2011 Guinea produced a little over 300,000 carats, worth approximately $30 million  US dollars. 

Diamond mining is the one mineral resource that that can be mined by individuals, by family’s, and by small local groups known as Artisans. Guinea hosts quite a few known diamond producing areas, and exploration is ongoing for additional primary kimberlitic source rocks for diamonds. Guinea joined the  Kimberley Process Certification Scheme (KPCS) for rough diamonds in 2003. The KPCS was established to certify that the proceeds from the sale of rough diamonds does not finance rebel groups in their quest to destabilize legitimate governments.

The KPCS, in 2009, requested an assessment of Guinea's diamond deposits to determine a realistic production range, and required Guinea to strengthen internal controls on their diamond exports has significantly improved in accuracy and in its overall controls.

However, data gaps, uneven implementation, limited technical capacity & regulatory insufficiencies in the artisanal mining sector continue, and Guinea remains a reported transit point for conflict diamonds from neighboring countries to international markets. These challenges threaten the credibility of Guinea's enforcement of the Kimberley Process Certification Scheme.

Transparency will reduce the threat of corruption, and can help the locals to hold government officials accountable for spending natural resource revenues.

The KPCS includes nineteen African Participants: Angola, Botswana, Cameroon, Central African Republic, Congo, Democratic Republic of the Congo, Cote d'Ivoire, Ghana, Guinea, Lesotho, Liberia, Mauritius, Namibia, Sierra Leone, South Africa, Swaziland, Tanzania Togo & Zimbabwe.

Norman Monteau