Guinea's government plans to change a number of tax clauses in the West African state's newly adopted mining code after discussions with companies and investors.

Mr Mohamed Lamine Fofana mines minister of Guinea said that they were aimed at making the country more attractive and competitive in current turbulent market conditions. The interim parliament in Guinea, the world's top bauxite exporter which has large scale iron ore deposits, adopted a new mining code in September.

Source in the mines ministry said that but more changes were necessary as market conditions have worsened. The source cited falling aluminium prices as an example.

Guinea is seeking political stability and investment after years of often authoritarian rule. President Mr Alpha Conde won a presidential election late last year but he faced an assassination attempt in July.

Mr Mohamed Lamine Fofana said that "We are not going to cancel taxes but we are going to improve them to meet the market conditions and be competitive. As things are turbulent at the moment, we are looking to see how we can best balance things so the rates are not going to be a break on the development of our country. We want to promote the processing of minerals."

According to the newly adopted mining code, companies that process minerals in country pay 6% on all imports while those that export without process must pay 8%. The new code would give the Guinean state a free 15% of mining projects along with the option to purchase an additional 20% bringing total potential share in projects to 35%.

Guinea has said that it will also launch a nationwide review of mining contracts to root out unconscionable provisions granted by previous rulers, and has toned down Chinese involvement in the resource sector.

As the world's top exporter of the aluminum ore bauxite and holder some of the best unexploited reserves of iron ore Guinea has drawn billions of dollars in planned investment from miner Rio Tinto and Vale.

(Sourced from www.worldal.com)