Editing Economy of Guinea (section)

== Economic sectors ==

===Mining===
{{main|Mining industry of Guinea}}
In 2019, the country was the world's 3rd largest producer of [[bauxite]].<ref>[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-bauxite-alumina.pdf USGS Bauxite Production Statistics]</ref>

Bauxite mining and alumina production provide about 80% of Guinea's foreign exchange. Several U.S. companies are active in this sector. Diamonds and gold also are mined and exported on a large scale, providing additional foreign exchange. Concession agreements have been signed for future exploitation of Guinea's extensive iron ore deposits.

Guinea is richly endowed with minerals, possessing an estimated one-third of the world's proven reserves of bauxite, more than 1.8&nbsp;billion metric tons (MT) (2.0&nbsp;billion short tons) of high-grade iron ore, significant diamond and gold deposits, and undetermined quantities of uranium.

Lately, with the increase of alumina demand from the booming economy of China, there is a renew interest in Guinea riches. The consortium [[Alcan]] and [[Alcoa]], partner with the Guinean government in the [[Compagnie des Bauxites de Guinée|CBG]] mining in north western Guinea, have announced the feasibility study for the construction of a 1 million TPa [[alumina]] smelter. This comes with a similar project from Canadian start-up Global Alumina trying to come with a 2&nbsp;billion dollar alumina plant in the same region. As of April 2005, the [[National Assembly of Guinea]] has not ratified Global's project.

Revenue from bauxite mining is expected to fall significantly in 2010 due mainly to the world economic situation.<ref>[http://www.miningweekly.com/article/guinea-bauxite-income-seen-down-60-in-2010-2009-09-28 ''Mining Weekly'', "Guinea bauxite income seen down 60% in 2010" 28 September 2009 (original source: Reuters)]</ref>

===Mining controversies===
Guinea has large reserves of the steel-making raw material, iron ore. [[Rio Tinto (corporation)|Rio Tinto]] was the majority owner of the $6&nbsp;billion [[Simandou]] iron ore project, which it had called the world's best unexploited resource. This project is said to be of the same magnitude as the [[Pilbara]] in Western Australia.<ref>{{cite web|url=http://www.miningweekly.com/print-version/red-gold-in-africa-exploring-red-gold-red-gold-rising-2012-10-05|title=Mining Weekly – West Africa emerging as new Pilbara as miners race to develop iron-ore projects|website=Miningweekly.com|access-date=19 February 2017|archive-url=https://web.archive.org/web/20170220092050/http://www.miningweekly.com/print-version/red-gold-in-africa-exploring-red-gold-red-gold-rising-2012-10-05|archive-date=20 February 2017|url-status=live}}</ref>

In 2017, [[Sculptor Capital Management|Och-Ziff Capital Management Group]] pled guilty to a multi-year bribery scheme, after an investigation by the [[Securities & Exchange Commission]] (SEC) led to a trial in the United States and a fine of $412&nbsp;million.<ref>{{Cite news|url=https://www.reuters.com/article/us-sec-och-ziff-capital/sec-charges-two-former-och-ziff-executives-in-corruption-case-idUSKBN15A29Z|title=U.S. SEC charges two former Och-Ziff executives in bribery case|date=26 January 2017|work=[[Reuters]]|access-date=7 February 2018|archive-url=https://web.archive.org/web/20180208004221/https://www.reuters.com/article/us-sec-och-ziff-capital/sec-charges-two-former-och-ziff-executives-in-corruption-case-idUSKBN15A29Z|archive-date=8 February 2018|url-status=live}}</ref> Following this, the SEC also filed a lawsuit in the US against head of Och-Ziff European operations, Michael Cohen,<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2018-01-03/michael-cohen-ex-och-ziff-executive-charged-with-fraud-by-u-s|title=Michael Cohen, Once of Och-Ziff, Charged With Fraud by U.S.|date=3 January 2018|publisher=Bloomberg L.P.|access-date=7 February 2018|archive-url=https://web.archive.org/web/20180124130509/https://www.bloomberg.com/news/articles/2018-01-03/michael-cohen-ex-och-ziff-executive-charged-with-fraud-by-u-s|archive-date=24 January 2018|url-status=live}}</ref><ref>{{Cite news|url=https://www.cnbc.com/2018/01/03/former-och-ziff-fund-executive-indicted-for-fraud-prosecutor-says.html|title=Former Och Ziff hedge fund executive indicted for fraud in Africa investment scheme, prosecutor says|last=Moyer|first=Liz|date=3 January 2018|publisher=CNBC|access-date=7 February 2018|archive-url=https://web.archive.org/web/20180207182935/https://www.cnbc.com/2018/01/03/former-och-ziff-fund-executive-indicted-for-fraud-prosecutor-says.html|archive-date=7 February 2018|url-status=live}}</ref> for his role in a bribery scheme in the region.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2017-01-26/two-former-och-ziff-executives-accused-by-sec-in-bribery-scheme-iyen7srp|title=Two Ex-Och-Ziff Executives Accused by SEC in Bribery Scheme|date=26 January 2017|publisher=Bloomberg L.P.|access-date=7 February 2018|archive-url=https://web.archive.org/web/20170128224952/https://www.bloomberg.com/news/articles/2017-01-26/two-former-och-ziff-executives-accused-by-sec-in-bribery-scheme-iyen7srp|archive-date=28 January 2017|url-status=live}}</ref><ref>{{Cite news|url=https://www.business-anti-corruption.com/news/sec-charges-two-masterminds-behind-och-ziff-africa-bribe-scheme|title=SEC charges two 'masterminds' behind Och-Ziff Africa bribe scheme|last=GAN|access-date=7 February 2018|archive-url=https://web.archive.org/web/20180207183000/https://www.business-anti-corruption.com/news/sec-charges-two-masterminds-behind-och-ziff-africa-bribe-scheme|archive-date=7 February 2018|url-status=live}}</ref>

In 2009 the government of Guinea gave the northern half of Simandou to BSGR<ref>{{cite web|url=http://www.timeslive.co.za/africa/2016/04/04/Panama-Papers-Steinmetz-Guinea-deal-pried-open|title=Panama Papers: Steinmetz Guinea deal pried open: Leaked documents pry open the corporate structure of companies involved in a mining rights scandal in Guinea|publisher=Times Live|author=KHADIJA SHARIFE|access-date=25 August 2016|archive-url=https://web.archive.org/web/20160504085959/http://www.timeslive.co.za/africa/2016/04/04/Panama-Papers-Steinmetz-Guinea-deal-pried-open|archive-date=4 May 2016|url-status=live}}</ref> for an $165&nbsp;million investment in the project and a pledge to spend $1&nbsp;billion on railways, saying that Rio Tinto wasn't moving into production fast enough. The US Justice Department investigated allegations that BSGR had bribed President Conté's wife to get him the concession,<ref>{{cite magazine |first=Patrick |last=Radden Keefe |date=8 July 2013 |title=Buried Secrets: How an Israeli billionaire wrested control of one of Africa's biggest prizes |url=https://www.newyorker.com/magazine/2013/07/08/buried-secrets |department=A Reporter at Large |magazine=[[The New Yorker]] |access-date=18 October 2020}}</ref> and so did the [[Federal Bureau of Investigation]], the next elected President of Guinea, [[Alpha Condé]], and an assortment of other national and international entities.

In April 2014 the Guinean government cancelled the company's mining rights in Simandou. BSGR has denied any wrongdoing, and in May 2014 sought arbitration over the government of Guinea's decision to expropriate its mining rights.<ref>{{Cite news|url=https://www.reuters.com/article/guinea-mining-idUSL6N0NT61620140507|title=UPDATE 2-BSGR starts arbitration against Guinea over lost mining rights|date=7 May 2017|access-date=19 February 2017|work=Reuters|archive-url=https://web.archive.org/web/20171012031548/https://www.reuters.com/article/guinea-mining-idUSL6N0NT61620140507|archive-date=12 October 2017|url-status=live}}</ref> In February 2019, [[BSG Resources|BSGR]] and Guinean President [[Alpha Condé]] agreed to drop all [[allegation]]s of wrongdoing as well as the pending [[arbitration]] case.<ref>{{Cite web|date=2019-02-25|title=Mining Billionaire Ends Bitter Guinea Dispute After Months of Secret Negotiations|url=https://www.bloomberg.com/news/articles/2019-02-25/steinmetz-stages-guinea-comeback-in-sarkozy-brokered-deal|access-date=13 August 2019|publisher=Bloomberg L.P.}}</ref> Under the agreement, BSGR would relinquish rights to [[Simandou]] while being allowed to maintain an interest in the smaller [[Zogota]] deposit that would be developed by Niron Metals head [[Mick Davis]].<ref>{{Cite news|url=https://www.haaretz.com/world-news/asia-and-australia/israeli-billionaire-steinmetz-s-bsgr-settles-guinea-row-looks-to-zogota-iron-ore-1.6965270|title=Israeli Billionaire Steinmetz's BSGR Settles Guinea Row, Looks to Zogota Iron Ore|date=25 February 2019|work=Haaretz|access-date=13 August 2019}}</ref><ref>{{Cite news|url=https://www.theguardian.com/business/2019/feb/25/beny-steinmetz-settles-dispute-guinea-iron-ore-simandou|title=Beny Steinmetz settles dispute with Guinea over iron ore project|last=Goodley|first=Simon|date=25 February 2019|work=The Guardian|access-date=13 August 2019|issn=0261-3077}}</ref>

In 2010 Rio Tinto signed a binding agreement with [[Aluminum Corporation of China Limited]] to establish a joint venture for the Simandou iron ore project.<ref>{{Cite news|url=http://www.businessinsider.com/chinalco-rio-tinto-and-russal-are-fighting-over-mining-rights-and-power-in-guinea-2010-7|title=Chinalco, Rio Tinto And Russal Are Fighting Over Mining Rights And Power in Guinea|access-date=19 February 2017|newspaper=Business Insider|archive-url=https://web.archive.org/web/20170220013559/http://www.businessinsider.com/chinalco-rio-tinto-and-russal-are-fighting-over-mining-rights-and-power-in-guinea-2010-7|archive-date=20 February 2017|url-status=live}}</ref> In November 2016, Rio Tinto admitted paying $10.5&nbsp;million to a close adviser of President Alpha Condé to obtain rights on Simandou.<ref>{{Cite news|url=http://uk.reuters.com/article/uk-rio-tinto-guinea-corruption-idUKKBN1332Q3|title=Rio Tinto suspends senior executive after Guinea investigation|last=Samb|first=Sonali Paul and Saliou|access-date=19 February 2017|agency=Reuters UK|archive-url=https://web.archive.org/web/20170220092155/http://uk.reuters.com/article/uk-rio-tinto-guinea-corruption-idUKKBN1332Q3|archive-date=20 February 2017|url-status=dead}}</ref> Conde said he knew nothing about the bribe and denied any wrongdoing. However, according to recordings obtained by [[France 24]], Guinean authorities were aware of the Simandou briberies.<ref>{{Cite news|url=http://www.france24.com/en/20161201-exclusive-audio-recordings-guinea-president-conde-simandou-mine-bribery-rio-tinto|title=Audio recordings drag Guinea president into mine bribery scandal – France 24|date=1 December 2016|access-date=19 February 2017|publisher=France 24|archive-url=https://web.archive.org/web/20170219074558/http://www.france24.com/en/20161201-exclusive-audio-recordings-guinea-president-conde-simandou-mine-bribery-rio-tinto|archive-date=19 February 2017|url-status=live}}</ref>

In July 2017, the UK-based anti-fraud regulator, the [[Serious Fraud Office (United Kingdom)|Serious Fraud Office]] (SFO) and the [[Australian Federal Police]]<ref>{{Cite news|url=https://citizen.co.za/news/news-africa/1584247/australia-guinea-mining-rio/|title=UK Serious Fraud Office probes Rio Tinto Guinea project|last=AFP|work=The Citizen|access-date=3 January 2018|archive-url=https://web.archive.org/web/20180104013757/https://citizen.co.za/news/news-africa/1584247/australia-guinea-mining-rio/|archive-date=4 January 2018|url-status=live}}</ref> launched an investigation into Rio Tinto's business practices in Guinea.<ref>{{Cite news|url=https://www.theguardian.com/business/2017/jul/24/rio-tinto-sfo-investigation-guinea-suspected-corruption|title=SFO says it is investigating Rio Tinto over Guinea operations|last1=Staff|date=25 July 2017|work=The Guardian|access-date=3 January 2018|last2=Reuters|issn=0261-3077|archive-url=https://web.archive.org/web/20180219021208/https://www.theguardian.com/business/2017/jul/24/rio-tinto-sfo-investigation-guinea-suspected-corruption|archive-date=19 February 2018|url-status=live}}</ref><ref>{{Cite news|url=https://www.reuters.com/article/britain-sfo-rio-tinto/uks-sfo-says-opens-investigation-into-rio-tinto-group-idUSL5N1KF5FC|title=UK's SFO says opens investigation into Rio Tinto Group|date=24 July 2017|work=Reuters|access-date=3 January 2018|archive-url=https://web.archive.org/web/20180104073210/https://www.reuters.com/article/britain-sfo-rio-tinto/uks-sfo-says-opens-investigation-into-rio-tinto-group-idUSL5N1KF5FC|archive-date=4 January 2018|url-status=live}}</ref>

Further, In November 2016, the former mining minister of Guinea, Mahmoud Thiam, accused head of Rio Tinto's Guinea operation department of offering him a bribe in 2010 to regain Rio Tinto's control over half of the undeveloped Simandou project.

In September 2011, Guinea adopted a new mining code. The law set up a commission to review government deals struck during the chaotic days between the end of dictatorship in 2008 and Condé coming to power.<ref name="TST">[https://www.scribd.com/doc/95727476/Secret-Deal-Threatens-Big-Miners-The-Sunday-Times Danny Fortson, "Secret deal threatens big miners"] {{Webarchive|url=https://web.archive.org/web/20140111000820/http://www.scribd.com/doc/95727476/Secret-Deal-Threatens-Big-Miners-The-Sunday-Times |date=11 January 2014 }} ''The Sunday Times'' (3 June 2012)]. Scribd.com (3 June 2012).</ref>

In September 2015, the French Financial Public Prosecutor's Office launched an investigation into President Alpha Conde's son, Mohamed Alpha Condé.<ref>{{Cite news|url=http://www.ecofinagency.com/law/2909-32343-french-justice-investigating-the-lifestyle-of-the-son-of-guinean-president|title=French Justice investigating the lifestyle of the son of Guinean president|access-date=19 February 2017|publisher=Ecofin Agency|archive-url=https://web.archive.org/web/20170220015926/http://www.ecofinagency.com/law/2909-32343-french-justice-investigating-the-lifestyle-of-the-son-of-guinean-president|archive-date=20 February 2017|url-status=live}}</ref> He was charged with embezzlement of public funds and receiving financial and other benefits from French companies that were interested in the Guinean mining industry.<ref>{{Cite news|url=http://www.leparisien.fr/faits-divers/enquete-sur-le-fils-du-president-guineen-28-09-2015-5132955.php|title=Enquête sur le fils du président guinéen|date=19 February 2017|access-date=19 February 2017|newspaper=Le Parisien|archive-url=https://web.archive.org/web/20170224205352/http://www.leparisien.fr/faits-divers/enquete-sur-le-fils-du-president-guineen-28-09-2015-5132955.php/|archive-date=24 February 2017|url-status=live}}</ref><ref>{{cite web|url=https://issafrica.org/iss-today/another-presidents-son-caught-with-his-hand-in-the-cookie-jar|title=Another president's son caught with his hand in the cookie jar? – ISS Africa|last=ISSAfrica.org|website=ISS Africa|access-date=19 February 2017|archive-url=https://web.archive.org/web/20170220014156/https://issafrica.org/iss-today/another-presidents-son-caught-with-his-hand-in-the-cookie-jar|archive-date=20 February 2017|url-status=live}}</ref>

In August 2016, son of a former Prime Minister of Gabon, who worked for Och-Ziff's Africa Management Ltd, a subsidiary of the U.S. hedge fund Och-Ziff, was arrested in the US and charged with bribing officials in Guinea, Chad and Niger on behalf of the company to secure mining concessions<ref>{{Cite news|url=https://www.nytimes.com/2016/08/17/business/dealbook/bribery-arrest-may-expose-african-mining-rights-scandal-tied-to-och-ziff.html|title=Bribery Arrest May Expose African Mining Rights Scandal Tied to Och-Ziff|last=Stevenson|first=Alexandra|date=16 August 2016|access-date=19 February 2017|issn=0362-4331|newspaper=The New York Times|archive-url=https://web.archive.org/web/20161217095653/http://www.nytimes.com/2016/08/17/business/dealbook/bribery-arrest-may-expose-african-mining-rights-scandal-tied-to-och-ziff.html|archive-date=17 December 2016|url-status=live}}</ref> and gain access to relevant confidential information.<ref name="justice.gov">{{cite web|url=https://www.justice.gov/opa/pr/gabonese-national-pleads-guilty-foreign-bribery-scheme|title=Gabonese National Pleads Guilty to Foreign Bribery Scheme|website=Justice.gov|date=9 December 2016 |access-date=19 February 2017|archive-url=https://web.archive.org/web/20170220092145/https://www.justice.gov/opa/pr/gabonese-national-pleads-guilty-foreign-bribery-scheme|archive-date=20 February 2017|url-status=live}}</ref> The investigation also revealed that he was involved in rewriting Guinea's mining law during President Conde's rule.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2016-08-18/u-s-case-into-fixer-for-och-ziff-venture-gets-support-in-guinea|title=U.S. Case into Fixer for Och-Ziff Venture Gets Support in Guinea|date=18 August 2016|access-date=19 February 2017|publisher=Bloomberg L.P.|archive-url=https://web.archive.org/web/20170220015740/https://www.bloomberg.com/news/articles/2016-08-18/u-s-case-into-fixer-for-och-ziff-venture-gets-support-in-guinea|archive-date=20 February 2017|url-status=live}}</ref> In December 2016, the US Department of Justice announced that the man pleaded guilty to conspiring to make corrupt payments to government officials in Africa.<ref name="justice.gov" />

According to a Global Witness report, Sable Mining sought iron ore explorations rights to Mount Nimba in Guinea by getting close to Conde towards the 2010 elections, backing his campaign for presidency and bribing his son.<ref>{{Cite news|url=https://www.globalwitness.org/thedeceivers/|title=The Deceivers|last=Witness|first=Global|access-date=19 February 2017|archive-url=https://web.archive.org/web/20170220020410/https://www.globalwitness.org/thedeceivers/|archive-date=20 February 2017|url-status=dead}}</ref> These allegations have not been verified yet but in March 2016 Guinean authorities ordered an investigation into the matter.<ref>{{Cite news|url=http://allafrica.com/stories/201605231239.html|title=Guinea: Sable Mining Bribery Under Probe|date=23 May 2016|access-date=19 February 2017|newspaper=The NEWS (Monrovia)|archive-url=https://web.archive.org/web/20170220013707/http://allafrica.com/stories/201605231239.html|archive-date=20 February 2017|url-status=live}}</ref>

The Conde government investigated two other contracts as well, one which left Hyperdynamic with a third of Guinea's offshore lease allocations as well as [[Rusal]]'s purchase of the Friguia Aluminum refinery, in which it said that Rusal greatly underpaid.<ref>{{cite news|url=http://www.miningweekly.com/article/guinea-targets-3-firms-in-resource-contract-review---source-2012-11-09/rep_id:3650|title=Guinea targets 3 firms in resource contract review – source|date=9 November 2012|publisher=Creamer Media's Mining Weekly|agency=Reuters|access-date=25 August 2016|archive-url=https://web.archive.org/web/20161017100205/http://www.miningweekly.com/article/guinea-targets-3-firms-in-resource-contract-review---source-2012-11-09/rep_id:3650|archive-date=17 October 2016|url-status=live}}</ref>

===Agriculture===
{{Further|Agriculture in Guinea}}

Guinea also has considerable potential for growth in the agricultural and fishing sectors. Land, water, and climatic conditions provide opportunities for large-scale irrigated farming and agroindustry. Possibilities for investment and commercial activities exist in all these areas, but Guinea's poorly developed infrastructure continues to present obstacles to investment projects.

=== Energy ===
{{Further|Energy in Guinea}}

Three primary energy sources make up the energy mix in Guinea – [[biomass]], oil and [[hydropower]]. With 78%, biomass (mostly charcoal) makes the largest contribution in primary energy consumption in Guinea. It is locally produced, while Guinea imports all petroleum products.

=== Communications ===
{{Further|Telecommunications in Guinea}}

The people of Guinea are among the poorest in West Africa<ref name=BBCNews-GuineaProfile-2012>[https://www.bbc.co.uk/news/world-africa-13442054 ""], ''BBC News'', 14 March 2012. Retrieved 4 February 2014.</ref> and this reality is reflected in the development of the country's telecommunications environment. Radio is the most important source of information for the public in Guinea, and the only one to reach the entire country.

There is a single government-owned radio network, a growing number of private radio stations, and one government TV station. The fixed telephone system is inadequate, with just 18,000 lines to serve the country's 10.5&nbsp;million inhabitants in 2012. The mobile cellular system is growing rapidly and had an estimated 4.8&nbsp;million lines in 2012. Internet usage is very low, reaching just 1.5% of the population in 2012.