Guinea's parliament adopted a new mining code that more than doubles the share the West African state can take in mining projects to 35% and toughens procedures for acquiring development permits.

The Guinea government said that the changes, detailed in a February draft of the code published by Reuters in April, are aimed at boosting the country's share of its vast minerals wealth while providing clarity on the country's laws to investors.

But mining companies lobbied hard against the changes arguing they would undercut their profitability and lead to reduced investment.

Mohamed Lamine Fofana Guinea Mines Minister said that "The National Transitional Council (Guinea's interim parliament) made these changes in the interests of the country. The new mining code will allow future investors in Guinea to work in transparency."

Guinea is the world's top exporter of the aluminum ore bauxite and holds some of the world's biggest unexploited reserves of iron ore that have drawn billions of dollars in planned investment from miner Rio Tinto and Vale.

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%

(Sourced from Reuters)