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MINING SECTOR REFORM

REFORM OF THE MINING SECTOR

IN IVORY COAST

GOAL OF GOVERNMENT

Make the mining sector a major economic growth engine given the importance of the geological and mining potential of Côte d'Ivoire.

STRATEGIES

Improving mining governance

Intensification of mining production and diversification of mining production

REFORMS AND ACTIONS

Improving mining governance

To develop the mining potential, reforms of the legal and institutional framework have been undertaken.

Adoption of a new Mining Code

It is more attractive to investors and consistent with the principles of transparency, traceability and social responsibility. It is consensual (broad consultation), attractive (return on investment) and competitive.

Code (Loi N 2014-138)

Introduction of the principle of good governance:

Kimberley Process, Extractive Industries Transparency Initiative ;

Corporate Social Responsibility ;

Speed ​​of delivery of exploration permits by setting a deadline in the Mining Code (60 days)

Introduction of a consensual tax system to international standards (royalties, income tax):

It contributes to community development: the development of a community development plan with populations and local authorities;

the constitution of a fund intended to finance local socio-economic projects supplied by 0.5% of the company's turnover.

It preserves the environment:

Obligation to carry out the social and environmental impact study;

Opening of escrow account to receive all the sums necessary for the rehabilitation and closure of the mine.

Following the Mining Code, Ordinance No. 2014-148 setting surface charges and proportional taxes relating to activities governed by the Code and Decree No. 2014632 setting the amounts and determining the terms of payment of fixed duties, duties option, costs of control, expertise, approval and issuance of maps and other documents relating to geological and mining activities, were taken.

Kimberley Process Membership

The establishment of a traceability control system enabled Cote d'Ivoire to be declared compliant with the Kimberley Process Certification System on November 22, 2013 and to obtain the lifting of the embargo on the Ivorian diamond (Resolution 2153 of the United Nations Security Council of April 28, 2014):

  • Preparation of a procedure guide

  • Development of traceability documents (production book for operators and purchase and sale receipts for collectors and purchasing offices).

Institutional frame :

Interministerial Order No. 354 MIM / MPMMEF of September 27, 2013 establishing the Permanent Secretariat of the Representation of the Kimberley Process.

Regulatory framework :

  • Order No. 438 / MIM / CAB of October 21, 2014 on

suspension of expertise and export of diamonds;

  • Order No. 5011 / MIM of November 10, 2014 determining the procedures for issuing the Kimberley Process certificate in the context of the export of rough diamonds

  • Decree No. 502 / MIM of 10 November 2014 determining the list of documents constituting the files for approval requests as the office of purchase, import and export of rough diamonds and of authorization relating to the purchase and the sale of rough diamonds;

  • Order No. 503 / MIM / CAB of 10 November 2014 determining the procedures for identifying the holder of an exploitation permit, the beneficiary of a mining exploitation authorization, workers, collectors and couriers within the framework rough diamonds activities.

Signature of 5 approvals as a purchasing office for rough diamonds, 4 artisanal mining licenses and 4 semi-industrial mining licenses.

Rationalization of gold panning

Faced with the expansion of illicit and clandestine gold panning, with harmful consequences both for populations and for the environment in almost all regions of the country, the Government has adopted a Regulatory Program.

The objective is to clean up, organize and supervise the gold panning activity so that it is in the short term a formal legal activity, and respectful of the rules of the trade and of the physical and social environment.

The actions carried out after raising awareness among stakeholders and setting up local committees, focused on clearing 150 sites in 2015 and identifying the corridors reserved for mining crafts. Awareness and evacuation operations continue throughout the territory in accordance with the Program in order to achieve the exercise of artisanal and semi-industrial mining activity authorized and monitored.

Community development program or

Local Content

The Mining Code provides for the establishment of a community development fund, Order No. 2014/148 fixes the rate of the contribution of companies to local development actions at 0.5% of turnover.


This fund is managed by a Local Mining Development Committee chaired by the Prefect of the region concerned and comprising representatives of all the strata of the populations concerned.

Intensification of mining production:


The issuance of exploration and exploitation permits, now accelerated, is growing rapidly.
They went from 57 and 6 in 2011 respectively to 172 and 12 in 2015.
In addition, mining investment increased from 67 billion FCFA in 2011 to 157 billion FCFA in 2015.


Mining production increased from 12.35 tonnes to 20 tonnes for gold and from 41,000 tonnes to 560,000 tonnes for manganese. The turnover of the mining sector increased from 558.55 billion FCFA to billion FCFA, with ad valorem taxes of 6.89 billion to 14 billion, over the same period. The level of employment rose from 5,354 to 6,646 people.

Diversification of mining production

The modernization of the geological infrastructure and the mining cadastre, which is in the process of computerization, will make it possible to further strengthen and diversify mining production in Côte d'Ivoire.


The implementation of the Western Integrated Mining Development Project by 2020 will allow the realization of four mining projects for base metal deposits, notably Iron and Nickel.


One of the strategic axes of diversification concerns the local processing of mineral substances in order to create more added value.

OUTLOOK

The Ivorian mining sector is a sector with high potential which will continue to develop. To continue the development dynamic that has started, reforms and actions will continue to unfold. These include:


• strengthening actions related to the implementation of the
Kimberley Process and the completion of the project to identify new areas suitable for the exploitation of diamonds

• finalization of the clearance process relating to gold panning and the allocation of artisanal and semi-industrial mining authorizations in dedicated areas, with the supervision of gold washers authorized by the Technical Agents of the Administration


• monitoring the implementation of major mining projects (gold, manganese, nickel, etc.)

• the deployment of the Local Content Program, with the installation of 5 CDLMs: Mines of Bonikro-Hiré-Dougbafla, Afema, Sissengué, Lauzoua and Kaniasso


• modernization of the geological infrastructure and the mining cadastre


• the implementation of the Integrated Western Mining Development Project, within the framework of a PPP.

Diversification of mining production

The modernization of the geological infrastructure and the mining cadastre, which is in the process of computerization, will make it possible to further strengthen and diversify mining production in Côte d'Ivoire.


The implementation of the Western Integrated Mining Development Project by 2020 will allow the realization of four mining projects for base metal deposits, notably Iron and Nickel.


One of the strategic axes of diversification concerns the local processing of mineral substances in order to create more added value.

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