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Guinea Cuts Mining Investment Estimate 33% on Global Slowdown

Mining companies may invest 33 percent less than previously estimated in Guinea this year because of a drop in worldwide commodity prices, the West African nation’s finance minister said.

Mining companies will spend $1 billion in the west African nation in 2013, less than the $1.5 billion previously forecast, said Finance Minister Kerfalla Yansane in an interview today in Marrakech, Morocco, at the African Development Bank annual meetings. Increased agricultural output and tourism may offset the slowdown in mining, he said.

“The downturn of the mining sector may have negative consequences for the economy,” Yansane said. “There has been some closing down of projects, some slowdown. There have been some job losses.”

Guinea’s economy will expand 5 percent this year before rising 6 percent to 7 percent in 2014 as prices for commodities like iron ore rebound, he said. The Standard and Poor’s index of 24 commodities has dropped 4.3 percent this year.

To contact the reporter on this story: Andres R. Martinez in Johannesburg at amartinez28@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

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