The Minister of Finance of Sierra Leone, Hon. Sheku Ahmed Fantamadi Bangura, has successfully secured a landmark USD 300 million investment to support mine construction, transportation infrastructure, and beneficiation facilities for the Tonkolili North Iron Ore Deposit.
According to a press release from the Sierra Leone Embassy in China, a Supplementary Agreement has been signed between the Mineral Wealth Fund (Sierra Leone) Limited (MWFSL) and China Overseas Engineering Group Company Limited (COVEC). The signing took place in Beijing on 1st July 2025 and builds on the Framework Agreement previously signed by both parties in September 2024.
This agreement represents a major step forward in Sierra Leone’s strategy to harness its mineral wealth for national development. Under the terms of the agreement, COVEC will provide up to USD 300 million in financing to support the construction of the mine, related transportation infrastructure, and beneficiation facilities.
The financing will be structured through a negotiated Engineering, Procurement, and Construction (EPC) contract, a Deferred Payment Agreement, and a Joint Venture Agreement ensuring no financial burden on Sierra Leone’s national budget.
Following the signing, Hon. Minister Sheku Ahmed Fantamadi Bangura, who also serves as Chairman of MWFSL, described the agreement as a transformative development for Sierra Leone. He stated, “This partnership with COVEC ensures that our country’s mineral wealth directly benefits our people through infrastructure, job creation, and increased national revenue. Importantly, all of this is structured responsibly within the legal framework of the Sierra Leone Mines and Minerals Development and Management Corporation Act, 2023.”
COVEC Chairman Mr. Jiang Zhe expressed pride in partnering with Sierra Leone on this strategic project. “We are committed to delivering world-class infrastructure and mining operations that align with Sierra Leone’s development goals,” he said.
The agreement reflects the Sierra Leone government’s commitment to responsible mineral development, as outlined in the Sierra Leone Mines and Minerals Development and Management Corporation Act, 2023. Under this Act, the state participates in mining and related activities through a wholly state-owned entity MWFSL ensuring that mining proceeds contribute directly to national development, without reliance on the public budget.