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Sierra Leone: Activists Cry Foul Over Mining Policy


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Inter Press Service (Johannesburg)

26 August 2008
Posted to the web 27 August 2008

Lansana Fofana
Freetown

In December 2007, unrest broke out in the diamond mining region of Kono in the east, between kimberlite mining corporation Koidu Holdings and locals in the lease area.

The company had promised to relocate hundreds of community residents to make way for its mining operation but the slow pace of implementation of this pledge, coupled with the repeated blasts of dynamite in underground mining sites set the company and its hosts on a collision course.

The confrontation resulted in the deaths of two persons and injuries to many others. The government was forced to close down the company's activities, amidst public protests. Koidu Holdings is yet to resume operations.

Under the existing mining laws, exporters of diamonds, for example, pay three percent of their export earnings to the government. This is the standard royalty levied on mining profits across the continent; it has been roundly criticised by activists who see this as insufficient enough to address the needs of the host communities. Of the three percent tax, barely 0.75 percent returns to the mining communities for infrastructural and community development, as well as rent for the leased lands.

Last month, the Sierra Leonean government set up a presidential task force to review the country's mining policies, but activists are complaining that their voices are not being heard.

According to Abdul Sanu, the Public Relations Officer of the Ministry of Mineral Resources: "The government deemed it fit to review all mining arrangements with the aim of improving them so as to serve the best interests of the country and its people and also to avoid confrontations between corporate mining entities and local communities, incidents which have resulted in unrest and loss of lives in the past."

Sanu says that his ministry is determined to make the new mining laws attractive both to investors and the country's population. "The government has as its primary interest the people, especially the host mining communities."

But Leslie Mboka, the national chairman of the Campaign for Just Mining, a civil society organisation that has been in the vanguard of campaigning for an improvement in the mining sector is not satisfied.

"It is not just about setting up a selected 'Task Force' that does not take into account the concerns of organisations monitoring the extractive industry as well as the views of the affected communities.

"A lot of factors touching on the interests of land-owners, the adequate payment of royalties, lease agreements, corporate social responsibility and a host of others, have to be taken into consideration."

Theophilus Gbenda, chair of the Association of Journalists on Mining and Extractives, one of the partners in a coalition of activists monitoring mining and the extractive industry, told IPS, "The task force must review and make public all mining contracts, ensure environmental protection is treated seriously and involve communities and civil society in all matters relating to mining."

Leading civil society organisations gathered in a conference in Freetown last week which focused on the review of the country's mining laws. In their position paper, they urged the government to solicit the input of a broad range of civil society in formulating new policies.

At present, only three CSOs are included in the presidential task force, the most outspoken one being the Network Movement for Justice and Development. It too is finding it hard to put through the general position of activists in the extractive industry, according to its representatives.

The civil society position insists that "no political or other undue pressure or interference is exerted on members of the Task Force, whether by government officials or mining companies."

It also calls for suspension of further negotiations of mining agreements until the task force's review has been completed and published.

It is not clear when the review of mining policies will be completed, but the coalition says sufficient time should be allowed and a specific channel be set up for soliciting contributions from civil society and residents of mining communities.

The key minerals mined in Sierra Leone are diamond, gold, rutile or titanium oxide and bauxite. The agreements signed with transnational mining companies have often proved unfavourable to the government and people, with the state often accused by activists of colluding with the mining companies.

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According to Mboka, the main rutile mining company in the south, Sierra Rutile, bagged an exclusive deal with the government in 2003, that grants the company a tax holiday till 2014. This exemption from a range of tax obligations, according to the activist, was only discovered via a leaked memo. Officials of the Mineral Resources ministry have declined to comment on the issue.

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Read comments. Write your own.

Author: Joe

Thu Sep 4 09:44:18 2008

With regards to this article, I may like this establishment to also look into the recruiting policies of staff in the exploration/mining companies.Graduate/ qualified geologists are most times not contracted to actualise their profession all they do is to hire foreign geologists as expatraits for basic tasks(like stream sediment sampling,lithological mapping etc.) which any geologist can do.Lastly,Sierra Rutile Ltd do not give benefit services for all staffs tagged as senior staff. Could you pls pick up these points for whatever policy ammendments? Regards

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