Guinea, the new rising star of gold investment in Africa

With gold reserves estimated at around 700 tonnes, Guinea is emerging as a destination of choice for international mining companies looking for new opportunities in the gold sector. Under-exploited for a long time, the country's rich subsoil is now attracting major investors, attracted by its largely untapped potential and attractive investment climate.

According to official data, the Guinean gold sector is still dominated by artisanal mining, which exported 58 tonnes of gold in 2023, compared with just 16 tonnes from industrial mines. This imbalance illustrates the lag in industrial development, but also the huge opportunity it represents. Projects such as the Kiniero mine, operated by Robex Resources, are set to change all that, with production expected to reach 155,000 ounces (around 5 tonnes) by 2026, or 31% of current industrial production.

Other initiatives are reinforcing this momentum. Hummingbird Resources launched production at Kouroussa in 2023, a project capable of delivering 100,000 ounces a year over seven years. In addition, Sanu Gold has raised $8.4 million to explore its Daina, Daguifara and Bantabaye licences, while Predictive Discovery, backed by Perseus, is accelerating work on the future Bankan mine.

Guinea also stands out for its favourable positioning in the African mining landscape. In the 2023 edition of the Fraser Institute's "Survey of Mining Companies", the country was ranked tenth in Africa and second in West Africa, behind Côte d'Ivoire, for its attractiveness to mining investment. This position is explained by its relative stability compared with other jurisdictions in the region, such as Mali, Burkina Faso and Niger, which are facing security and political challenges.

"We believe that Guinea is a place where we would invest today. [...] We don't see the same situations we see today in Mali, Burkina Faso or Niger", said Jorge Ganoza, CEO of Fortuna Mining, according to Reuters. After selling the Yaramoko mine in Burkina Faso, the Canadian company is now planning to allocate part of its exploration budget to Guinea, even though it does not yet have any assets there.

Despite this enthusiasm, the development of Guinea's industrial gold sector is not without obstacles. Securing financing for mine construction, as in the case of Kiniero where Robex plans to invest USD 190 million, remains a major challenge. What's more, access to energy and limited infrastructure could hamper large-scale industrialisation, issues common to many African countries.

However, the Guinean government's efforts to promote the mining sector are bearing fruit. Since the adoption of the mining code in 2011, revised in 2013, the country has put in place a regulatory framework designed to maximise benefits for the state while attracting investors. The mining sector, which will account for more than 90% of exports and 21% of GDP in 2021, is a pillar of the national economy.

Guinea is not an isolated case in West Africa, where the gold sector is booming. Côte d'Ivoire, Ghana and Mali remain heavyweights, but Guinea is gaining ground thanks to its potential and relative stability. With the price of gold crossing the USD 3,000 per ounce mark in 2024, buoyed by geopolitical tensions and economic uncertainties, the outlook for African producers, including Guinea, is particularly promising.

In conclusion, Guinea is emerging as a new frontier for gold investment, attracting companies ready to capitalise on its untapped potential. If the infrastructural and financial challenges are overcome, the country could rapidly become a major player in the African mining sector, helping to diversify and strengthen its economy.