SYLLA & PARTNERS, working with an international law firm, advised Compagnie des Bauxites de Guinée (CBG) on Guinean law aspects of implementing and financing the extension of its project in Guinea. Our firm conducted due diligence aimed at informing CBG and its financiers/lenders on sensitive issues in the legal documentation governing the implementation of the project subject to extension.
CBG is the world’s leading metallurgical bauxite exporter. The company is formed by the Government of the Republic of Guinea (49%) and the Halco Mining consortium composed of Rio Tinto-Alcan, Alcoa and Dadco (51%). This unique shareholding structure, associating the Guinean State with world-leading multinational mining companies, makes CBG a historic and strategic player in the Guinean mining sector.
Since its creation, CBG has played a major role in the Guinean economy, generating significant revenue for the State and creating thousands of direct and indirect jobs. CBG’s operations expansion project aimed to increase its production capacity to meet growing global demand for high-quality metallurgical bauxite.
Financing an expansion project for a company of CBG’s magnitude requires sophisticated financial structuring involving international financiers and lenders. Conducting thorough legal due diligence constitutes an essential step to identify and assess legal risks associated with the project, thus enabling financiers to make informed decisions and structure appropriate guarantees.
Our firm provided its in-depth local expertise in Guinean law within an international consortium of legal advisors, mobilizing our knowledge of mining law, project finance and security interests.
The services performed by SYLLA & PARTNERS included conducting comprehensive legal due diligence on existing legal documentation governing CBG’s operations, in-depth analysis of fundamental agreements governing relationships between CBG, the Government of Guinea and Halco Mining consortium shareholders, identification and assessment of sensitive legal and regulatory risks related to the expansion project, advice on Guinean law aspects relevant to project financing, as well as coordination with the international law firm to ensure a coherent and exhaustive due diligence approach.
This type of assignment illustrates our ability to work in consortium with leading international law firms on major mining project financing transactions, providing the essential local expertise for legal security of these complex operations.
The SYLLA & PARTNERS team was led by Pierre Kodjo AVODE, partner, assisted by Mohamed Sidiki SYLLA and Madigbè KABA.
To discover other mining financing projects that our firm has completed in Guinea, visit our references page. For any questions regarding our services in due diligence or mining project financing, please do not hesitate to contact us.