Guinea talks carbon tax on mines as it seeks $4.3 billion loans

Guinea is planning to introduce a carbon tax on mining companies as it started talks with United Arab Emirates investors to raise $4.3 billion to fund development projects.

The government is studying the modalities of implementing such a tax to defray the cost of emissions and removal of vegetative cover by mining firms, Prime Minister Bernard Goumou said during an investor forum organized by the West African nation in Dubai on Thursday.

Guinea is among the world’s top producers of bauxite, a raw material used to produce aluminum. The country also produces gold and has the world’s largest untapped deposit of iron ore. Mining companies produce most of their own energy using fossil fuel-fired thermal plants and transport the mineral by road to ports.

“The objective is to manage the potential for pollution and risks affecting the health of the population,” Goumou said. “The authorities aim to ensure the conservation of Guinea’s ecological potential and the promotion of a blue and green economy.”

Guinea Alumina Corp., a unit of Emirates Global Aluminium and China-backed Societe Miniere de Boke are among companies that produce bauxite in the country. Societe Aurifere de Guinee, a unit of AngloGold Ashanti and Societe Miniere de Dinguiraye mine gold there.

The country, which earlier sought to raise $3.4 billion to meet the financing deficit of so-called transition projects captured in its development program, has increased the target to $4.3 billion after taking into account the cost of new projects, Goumou said.

The $16.6 billion program aims to finance dozens of infrastructure projects as well as the electoral process supposed to end a military transition underway since September 2021.