Sierra Leone News: Govt Clarifies Cancellation of Mining Licenses
By Abu Bakarr Munu
Government relies heavily on revenue from the mining sector to support budgetary expenditure, especially at a time the country’s economy is going through turbulent time. Therefore, the cancelation or suspension of mining rights of major mining projects by the government came as a surprise to many people.
Explaining the rational for the conciliation and suspension of mining licenses, Director General of the National Mineral Agency (NMA), Julius Daniel Mattai told journalists at a news conference on Thursday in Freetown that, the government is deeply concerned about widespread rumours making the rounds that the government cancelled mining licenses.
“This information is not correct, and very misleading. The overall aim of government is to promote investment, and the decision to cancel or suspend licence is not taken lightly,” Daniel Mattai said. “There have been only one cancellation and one temporary suspension,” he clarified.
Daniel Mattai said that on June 3, 2019, government cancelled the mining licence of the Tonkolili Iron Ore Project (TIOP) which is operated by Shansteel (SL) Ltd.; and exactly one month later on July 3, 2019, government temporarily suspended the mining licences of SL Mining Ltd for 21 days but has it now been lifted, except for shipping of iron ore.
He said both the cancellation and temporary suspension were based on very strong reasons emanating from serious breaches of the terms of their mining licences and the Mines and Minerals Act of 2009 by the two companies, in order to protect the interest of the nation.
He explained that, the TIOP and its sister company African Rail and Port Services (SL) Ltd. (ARPS), breached their statutory obligations including the mining lease and the railway and port lease agreements. He said in particular, TOIL and ARPS have not paid their annual licence fees and lease rent since August 2018; and also failed to make royalty payment for April 2018 shipment of iron-ore, and failed to provide details of phase two Mining Development Plan, including information on the geology, mining operation, processing and rail operation. He said government was left with no option but to cancel and terminate the agreements.
In the case of SL Mining Company on the other hand, Mattai said they took the decision to impose the temporary suspension because the company contravened provisions of the Mines and Minerals Act of 2009, and that the company made statements to government in connection with their mineral rights, which they knew or ought to have known, to be false.
