Published 18 October 2019
The 2011 Guinean Mining Code (2011 MC) sets out the legal framework governing the relationships between mining companies and local communities. The negotiation of a local development agreement (LDA) and the payment of a financial contribution to a local economic development fund (LEDF) are new requirements for holders of mining titles. The 2011 Mining Code is viewed as part of the ‘fourth generation’ of African mining codes which include provisions on local development, environment protection, transparency and accountability in order to achieve sustainable development. The purpose of this study is to review the recent literature on the ‘contractual turn’ in the relationship between mining companies and local communities. And to analyse the legal and institutional framework established by the 2011 Mining Code for LDAs and LEDFs in order to identify the challenges associated with its application. The study shows that if Guinea is one of the few African countries that has imposed the negotiation of LDAs, the new provisions are not applied to all mining agreements signed before its entry into effect given stabilizations clauses included in those agreements. Therefore, this situation creates a dual framework for local communities affected by mining operations. Furthermore, community effective representation and its capacity to negotiate LDAs, and LEDFs governance remain challenges for achieving the goals fixed by the 2011 Mining Code for local development.
This paper will be part of the OGEL Special Issue on "Social Licence to Operate (SLO) in the Extractive and Energy Sectors". More information here www.ogel.org/news.asp?key=571