Sierra Leone News: Govt Cautions SL Mining

By Stephen V. Lansana

Sierra Leone’s Ministry of Mines and Mineral Resources (MMMR) and the National Minerals Agency (NMA) on Saturday August 17, 2019, cautioned SL Mining to continue to constructively and respectfully engage government in good faith rather than seeking to discredit the government and its laws, regulatory authorities and processes.

The government issued this statement after SL Mining made several statements in both the mainstream and social media challenging the terms and conditions outlined by the government.

It could be recalled that government temporarily suspended the license of the SL Mining Limited in accordance with Mineral Right with restriction period not to ship Iron Ore from Sierra Leone, while the Ministry of Mines analysed their contractual documentation that was presented to them by company.

But the Terms and Conditions issued by the government for SL Mining to Commence Shipment for Marampa Blue has sparked disagreement.

MMMR and the NMA said, “We wish the public to know that a restriction on shipment was imposed on SL Mining as a result of blatant breaches of some provisions of the Mines and Minerals Act of 2009 (MMA 2009) and the Mining Lease Agreement 2017 (MLA 2017) between the Government of Sierra Leone (GOSL) and SL Mining, which was abnormally ratified in the House of Parliament on 6 December 2017.”

According to the statement, the letter of August 13, 2019 from the MMMR was a response to SL Mining, after reviewing several documents they (SL Mining) had presented to the MMMR upon requests from the GOSL. That letter from the MMMR, in good faith, outlined the terms and conditions upon which the Minister of Mines and Mineral Resources could lift the restriction for SL Mining to recommence the shipment of iron ore (Marampa Blue) from Sierra Leone.

“We note that one of the publications of grave concern, is a letter from SL Mining dated 14th August 2019, and addressed to the Minister of Mines and Mineral Resources. In that letter, SL Mining insulted and ridiculed the GOSL, shamelessly poured aspersions on the GOSL by asserting that the regulatory actions of the GOSL is an illegal attempt to extort money from them. SL Mining also had the effrontery to state that the imposition of Presidential Executive Order №1 was “illegal”. This is an insult to the GOSL and by extension the people of Sierra Leone,” NMA said.

NMA pointed out that the government and the people of Sierra Leone take great exception to the content of the letter from SL Mining dated August 14, 2019. NMA said, while government remains fully committed to attracting, guiding and protecting investors, we also have a responsibility to ensure that these investors comply with the laws of Sierra Leone.

“The GOSL remains fully committed to resolving this impasse, and we encourage SL Mining to continue to constructively and respectfully engage the MMMR and NMA in good faith rather than seeking to discredit the GOSL and its laws, regulatory authorities and processes. We hereby take this opportunity to assure the public of our very firm commitment to ensuring that the people of Sierra Leone derive maximum benefits from our mineral wealth,” NMA emphasized.

It could be recalled the Minister of Mines and Mineral Resources, Hon. Foday Rado Yokie said in a letter addressed to the Chief Executive Officer of SL Mining Ltd that, having reviewed the submitted documentation and giving due consideration, the ministry will lift the restriction on shipment of Iron Ore[Marampa Blue] from the country provided they meet government demands.

The minister said government will lift the restriction on the shipment of iron ore (Marampa Blue) from Sierra Leone provided that SL Mining Ltd satisfactorily fulfils the following terms and conditions pursuant to clause 4.16 of the Mining Lease Agreement (MLA): SL Limited to immediately pay to the government USD1 million performance bond; to make substantial progress towards the re-opening of the Marampa Mine within a period of 12 months from the date of ratification of the MLA; to immediately commence and complete negotiations of an Advance Pricing Agreement with the government establishing guidelines for determining the deemed arm’s length sale value and price of such minerals for purposes of the calculation of royalty; to immediately make full royalty payment for the three Shipments undertaken in June 2019 and July 2019 of Marampa Blue; to make advance payment of royalty to the government, to provide fully audited Financial Statements for 2017; and to agree in principle to mutually revisit/renegotiate shipments of Marampa Blue in accordance with arm’s length calculations as per the Mines and Minerals Act 2009.