Conakry, Guinea  - The African Union Monday suspended Guinea on Monday for its military coup but held off on instituting sanctions.

Following a meeting of its Peace and Security Council, the continent-wide body said that Guinea would remain suspended until it restored constitutional rule and could face sanctions if the coup leaders hold onto power.

Junior military officer Captain Moussa Dadi Camara seized power on Tuesday hours after the death of President Lansana Conte.

The coup has been widely condemned internationally, although Senegalese President Abdoulaye Wade on Friday urged foreign governments to back the new leaders.

Camara is Tuesday due to meet representatives from the United Nations, European Union, African Union and the Economic Community of West African States (ECOWAS) in an attempt to woo the international community.

Following the coup, Guinea's new president said he has no interest in holding on to power and would arrange "free, fair and transparent" elections for 2010.

Camara strengthened his position on Sunday by firing 22 senior military officials, saying the had reached retirement age.

Camara on Saturday also said that all mining contracts would be renegotiated and that that anybody found guilty of corruption would be punished.

International companies are heavily involved in mining in the West African nation, which has the world's largest reserves of bauxite, an ore used to make aluminium, and significant deposits of gold and diamonds. (dpa)