Market Study of Guinea Bissau

Project by Services – Mineral Analytics
Project by Mineral – Bauxite, Phosphate, Mineral Sand, Gold
Project by Country – Guinea Bissau
Project by Regions – Africa

Heading – Market Study of Guinea Bissau
Guinea Bissau is a western country in Africa, little known for its mining pedigree. However, our client spotted some opportunity to consider acquiring mineral assets there. Before allotting funds, our client wanted to know the nitty gritty of the country – its demography, socio-legal system, economic condition, mining legislation, infrastructure etc. Hence, we undertook a desktop due diligence of Guinea Bissau from mining point of view.Geovale’s analytics team collected all the relevant information both from primary and secondary sources and analysed all the
opportunities and risks. It examined the mineral occurrences, current and past instances of mining efforts and project stages in the country. It also analysed the mineral policies, legislations, corporate laws and taxation of mining projects in details.We found that Guinea Bissau is highly unexplored. There is enough indication of potential for high grade bauxite, phosphate and gold deposits in the country. However, the country does not have the financial capacity to undertake country-wide geological survey. The Doe Bauxite Project in Boe region showed the average grade of bauxite of 44% alumina (Al2O3) with 3.9% silica (SiO2). The Farim Phosphate Project is likely to start production from 2016. The country has an attractive corporate tax rate of 25%. It also offers tax reduction of 50% for the 6 years by investing in an important field of business for development of Guinea-Bissau.However, Geovale advised the client not to venture in this country at this stage. The reasons include the following, among many others.

 Guinea-Bissau is considered to be one of the most risky areas in the region due to political
 As Guinea Bissau is not yet a ratified signatory to the important conventions of UN or World
Bank. Hence there is no recourse available to any business if the Government of Guinea
Bissau does not honor a contract made with them.
 Overall infrastructure of the country has been under-developed.
 Lack of transparency in doing business in Guinea Bissau as the Geology & Mines Department
claims that most of their records of past exploration activity in the country had been lost or