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InDABA ReVIeW

Sierra Leone hits restart

on resources sector

ierra Leone President Julius “All we seek as a country is a cor-
SMaada Bio arrived at the Mining dial engagement in which all parties
Indaba to tell investors his country get to a meeting of minds on how
was starting its mining industry with best to reshape and develop that
a blank slate and welcomed miners, investor-host country relationship
as long as they proved trustworthy, so that we both have a win-win out-
credible and patient. come.
Bio came to power in 2018 prom- “We are not interested in players
ising he would clean up the coun- who merely speculate on mineral
try’s mining industry which had prices, we have had experience of
become largely synonymous with that, speculate on host governments
blood diamonds and other illegal on mining agreements they know
mining activity. are untenable. We have cracked
Bio acted swiftly to clear up both down on corruption.
the informal mining sector and “We seek greater benefits from
large-scale mining licences. In late our natural resources, want profit
2018, companies such as ASX- sharing return on natural resources.
listed Cape Lambert Resources Ltd We want enhanced economics ben-
and Frank Timis’ African Minerals efits.”
plc had mining licences unilaterally can- Sierra Leone President Julius Maada Bio Bio said in order to counter “com-
celled as part of Bio’s reversal of several of panies [running] on fair deals claim-
predecessor Ernest Bai Koroma’s natural “We are reviewing and harmonising all ing geological doubts” the Government had
resources deals. Then, in October, Gerald mining laws and regulations to remove du- launched an extensive geophysical survey.
Group announced its mining licence for the plications and inconsistencies and increase The survey, covering the entire country,
Marampa iron ore mine had been cancelled transparency and predictability and we comprised more than 450,000 line-km
“with immediate effect”. seek to resolve legislative issues in a fair “The results have shown extensive prov-
The tenement situation virtually wiped and transparent manner,” he said. en reserves of metals,” Bio said.
clean, Bio used his Indaba platform to urge Sierra Leone is rich in iron ore and Bio is The President also railed against “play-
investors to return, but with a new approach. seeking public-private partnerships to build ers who fiddle with numbers and argue
On October 18, the National Minerals the infrastructure needed to see develop- about fiscal regimes”, telling Mining Indaba
Agency said it had not entered negotiations ment flourish. delegates his Government had worked to
over reinstating the licences. He is also eager to ensure any mineral ensure its mining policy reforms were at-
“Government has not had any discus- boom provides Sierra Leoneans with em- tractive to international investors.
sions with any individual, mining company ployment and training opportunities. “We can guarantee security of permitting
or corporate entity on the above conces- “Sierra Leone children must have the and of tenure,” he said. “We’ve mapped out
sions, and anyone, corporate entity/mining requisite skills for future mining,” Bio said. the risk matrix on why investors would con-
company claiming to have had such discus- “We want to boost mining-related skills. sider investing in Sierra Leone. Profit ranked
sions with Government is misleading the Open to specific partnerships for mining- high. Companies, government and financi-
public,” the agency said in a statement. “In related training and mining training in line ers have often competing interests. They
particular, Government has not had discus- with educational strategic outcomes. We have to believe a new project can produce
sions with Cape Lambert nor Frank Timis.” wish to focus on science and technology an acceptable profit margin.
Speaking at the Mining Indaba, Bio said education.” “So, the tax regime we install is important.
the country was building its capabilities and In particular, he is eyeing advanced tech- The more unpredictable it is, the less likely
making itself more attractive to international nology jobs. they will invest. There is also no restriction on
investors. “The future of mining will involve big repatriation of profits or the sale of assets.”
“Sierra Leone is an open, peaceful data analytics and block chain for pre- Reforms have also taken place in the envi-
and stable democracy with a free market cious stones. The fourth industrial revolu- ronmental space.
economy,” Bio said. “We don’t believe the tion; technology, AI, drones, the internet of “Until recently the environmental laws
business of government is to govern busi- things, block chain and more will have an were interpreted by different agencies and
ness, we need to strengthen the business impact in mining.” they acted independently of each other, now
ecosystem.” However, for all the welcoming words, we have harmonious legislation and regu-
Bio said his Government recognised the there was plenty of warnings about the lation,” Bio said. “There is a new environ-
importance of mining to African economies expectations foreign miners would have to mental impact framework which will result
and with support of the returning World meet under Bio’s Government. in reduced environmental liability fees when
Bank and IMF had put in place the macro “We want trustworthy, credible and pa- companies reduce their environmental foot-
foundations for a “strong, diversified econ- tient investors who are interested in a sus- print.”
omy”. tainable, long-term relationship. – Dominic Piper

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