Parliament Directs SH Mining Settle Outstanding Community Compensation

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By: Aminata Sesay

The Parliamentary Committee on Mines and Mineral Resources has directed SH Mining Company Limited to settle outstanding compensation payments owed to affected communities in Lower Banta Chiefdom, Moyamba District, following an oversight hearing into the company’s mining operations.

The directive was issued on Tuesday, 11 August 2026, during a hearing chaired by the Committee Chairman, Hon. Emerson Lamina, at Committee Room 1 of Parliament.

The Committee ordered the company to clear several outstanding obligations, subject to verification and compliance with relevant legal procedures. These include Le110,000 for the construction of a site plan, Le500,000 in economic crop compensation, Le89,400 in surface rent and Le218,000 in crop compensation.

SH Mining Company Limited was also directed to address a reported Le400,000 shortfall relating to crop compensation and other outstanding community obligations, as established by the relevant authorities.

The Committee gave the company and other relevant stakeholders two weeks to implement the resolutions, subject to verification and applicable procedures.

The hearing followed complaints from landowners and members of host communities regarding land rights, community consultations, compensation payments, surface rent, environmental concerns, relocation issues and relations between the company, traditional authorities and affected communities.

During deliberations, the Committee observed that there had been a breakdown in communication between SH Mining Company Limited, the Paramount Chief, landowners and sections of the host communities.

Hon. Emerson Lamina emphasized the need to strike a balance between the interests of the State, mining communities and investors, noting that responsible mining requires the protection of community rights while creating a peaceful environment for legitimate investors to operate.

As part of its resolutions, the Committee directed SH Mining Company Limited to appoint a Community Liaison Officer to serve as a dedicated communication link between the company and host communities.

The officer will be responsible for receiving and documenting complaints, facilitating engagements, providing information on mining activities and helping to resolve misunderstandings between the company and affected communities.

The Committee further instructed the company and host communities to jointly review an existing land lease agreement covering approximately 5.2 square kilometres and seven villages to ensure that its terms are clearly understood and properly implemented.

Concerns were also raised about the adequacy of consultations with communities and landowners at various stages of the mining process. The Committee stressed that legitimate landowners and affected communities must be properly identified and meaningfully involved in decisions relating to mining activities, environmental assessments and compensation processes.

On compensation matters, the Committee called for greater involvement of relevant agricultural authorities in assessing crops and economic trees affected by mining operations. It noted that professional and transparent assessments were necessary to ensure that rightful beneficiaries are identified and fairly compensated.

The Committee also cautioned that any relocation or resettlement arising from mining activities must follow established government procedures, including consultation, proper assessment, compensation and the provision of suitable alternatives where necessary.

Environmental and social safeguards were highlighted as key areas requiring attention. The Committee emphasized the importance of proper environmental assessments, water-quality monitoring, community health and safety measures, flood-risk assessments and the protection of agricultural land.

The Committee recommended the establishment of an Ad Hoc Committee comprising representatives of the host communities to monitor the implementation of its directives.

The Ad Hoc Committee will work with SH Mining Company Limited, government institutions and other stakeholders and provide updates on progress made.

A member of the Mines and Mineral Resources Committee, preferably the Member of Parliament representing the affected community, is also expected to participate in monitoring implementation.

The Committee requested SH Mining Company Limited to submit details on its ownership structure, current operations, licences and approvals, number of local and foreign employees, remuneration arrangements, community agreements and environmental approvals to support Parliament’s oversight activities.

It further called for stronger monitoring of mining companies by the Ministry responsible for Mines and Mineral Resources and urged mining operators to maintain effective communication channels with Paramount Chiefs, landowners, host Members of Parliament and community representatives.

The Committee also recommended the establishment of effective community grievance mechanisms and regular reporting to Parliament by relevant regulatory institutions on mining companies’ compliance with legal and operational requirements.

A comprehensive review of relevant agreements and community arrangements is expected to be conducted in 2027 to develop a sustainable framework for future mining operations.

In its concluding remarks, the Committee reaffirmed the importance of mining to Sierra Leone’s economic development but stressed that mineral resources must be exploited responsibly, in accordance with the law and with due regard for the rights and welfare of host communities.

The Committee urged SH Mining Company Limited, traditional authorities, landowners, community representatives, government institutions and the host Member of Parliament to work together to implement the resolutions and maintain peace, cooperation and sustainable development in the affected communities.

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