Revitalizing Sierra Leone's Mineral Wealth: A New Strategy for National Benefit

Minister of Finance Sheku Fantamadi Bangura recently addressed Sierra Leone's enduring challenge with its substantial mineral resources, highlighting the government's renewed strategy to regain control and enhance national benefits. This strategy focuses particularly on the newly conceptualized Kasafoni iron ore deposit and the role of the Sierra Leone Mining Development Management Corporation.

Minister Bangura candidly recounted that since 1982, the nation's extensive mineral wealth has predominantly been managed by private entities.

These companies were initially granted exploration rights, followed by mining licenses, with the government primarily depending on tax revenues.

The first mining agreement was with Sierra Rutile, which became a model for subsequent arrangements, according to the Minister.

He noted that these agreements often lacked standardization, resulting in varied arrangements for different individuals.

This fragmented approach, as he explained, led to significant financial losses for the government.

A review of the recently enacted 2022 mining law revealed a significant gap in governmental participation. While the law permitted only a 10% interest model for the government in new ventures, Minister Bangura has been authorized to mobilize up to a 35% equity stake.

In a decisive move to address past oversights, Minister Bangura announced that the government has paid $100,000 to the National Mining Agency (NMA) on behalf of the Sierra Leone Mining Development Management Corporation.

This funding is essential for conducting detailed exploration studies of the Kasafoni iron ore deposit by SRK Exploration in the UK. This partnership will offer critical guidance on areas the government should focus on and establish funds to attract investors.

The ultimate objective, he emphasized, is for the government to acquire a significant asset, such as Kasafoni, and strategically allocate it to benefit the nation through financial resources.

Outlining the new operational framework, Minister Bangura emphasized adherence to stringent mining laws, which the Ministry of Mines has updated with clear standards, requirements, and processes.

He detailed the steps for any corporation seeking a license, including engaging with local communities, securing land lists, conducting summons, and performing comprehensive feasibility studies. This systematic approach underscores the government's commitment to ensuring that future mining ventures, like Kasafoni, are conducted with transparency, community involvement, and maximum benefit for the people of Sierra Leone.