Guinea has recently adopted a new mining code in the country which increases its participation and revenues in the activities of commodities companies operating in the country from 15 percent to 35 percent. However, according to media reports, it is not yet clear if the code will only affect new projects that have not yet received the necessary permits, or for existing projects as well. If the new code does apply to the latter, then it could result in decreased revenue for Vale for its Simandou iron ore project joint venture project in Guinea. The Simandou project is expected to begin producing about 2 million metric tons of iron ore in 2012, with production rising exponentially to 50 million metric tons from 2020.
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