Hyperdynamics Corp (HDYNQ)

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Slowdown in mining in Guinea

(Text Below from the Article posted by Popcorncharts)

A former Guinean Minister denounces the slowdown in the mining sector of the country - The Treasury Guinea receives annually since 1975, the "modest" sum of 150 million U.S. dollars from the mining sector, revealed PANA Tuesday, during an interview, Dr. Ibrahima Soumah, former Minister of Mines and Geology, noting that during this period more than 4.5 billion U.S. dollars have been received by the State.

According to the former Minister of Mines, this sum, although small, is the mainstay of the national economy. It lets you import every year, more than 400,000 tons of rice, the staple diet of the people. Signing agreements or reforms, announced with great fanfare by the new authorities, he says, serve not much as good governance is absent from the mining sector and should be left to professionals.

Dr. Soumah ensures the not surprising slowdown in the mining sector is due to the new government initiated reforms, but that soon, he said, will give the desired results. Currently Chairman of the Cabinet "Group for investment and management," Mr. Soumah emphasizes: "The slowdown in the mining sector is not conducive to investment, and it is why many investors are still waiting. "

Turning to the review of mining contracts considered impaired by the new authorities, the former minister said that no objective assessment can be derived from ongoing reforms because the results on the ground is not available. "revision of mining contracts in progress since 2012 is facing difficulties. The texts are difficult to apply, "said he said, adding that this operation should not be extended to all investors, except for Ruski Alumini (RUSAL) and Hyperdynamics who had not complied with certain procedures.

An audit of the mining cadastre, made in 2011 to approximately 10 million U.S. dollars, was established according to several official sources that the 1200 mining titles, 800 were inactive. According to Dr. Soumah, the investment framework for an amount 20 billion U.S. dollars, recently signed with Rio Tinto, Anglo-Australian giant iron, diamond, among others, is based on the code 1995 and not on the revised 2011. Convention on bauxite mining Gaoual (North) uses two mining codes of 1995 and 2011. Guinea's basement, according to several studies, holds enormous mineral wealth of impressive quantities such as iron, bauxite, gold, diamonds, copper , among others. These resources are located in four regions of the country. Guinea Maritime Forest Guinea, Upper Guinea and Middle Guinea Pana 16/07/2014