May 14, 2021
By Mohamed M. Sesay
After a successful symbiotic trade negotiation between the Government of Sierra Leone and Sierra Leone mining Limited (SL Mining/ Gerald Group), the Minister of Mines and Mineral Resources Timothy Kabba has informed a battery of journalists that Government will now own 10% shares of carried free interest, plus a fixed sum of twenty million dollars (20 million dollars) in two installments of ten million dollars (USD 10 million) prior to December 31st 2021.
Further explaining the goodies in the just concluded out of court settlement with SL Mining Limited, Minister Kabba intimated that government has pursued a very painstaking journey for them to reach such win-win trade agreement with SL Mining.
This followed the cancellation of the license of SL Mining in 2019 which was premised on several grounds.
The Mines Minsiter provided information on the decision to cancel the license of SL Mining with a view to maximize and optimize opportunities for the people of Sierra Leone.
He emphasized the successes of the negotiation, with assurance that the trade deal between the government of Sierra Leone and SL Mining happens to be one of the best deals in the history of the country. He added that Sierra Leone has never had a 10% free carried interest in any mining arrangement other than this very recent arrangement between government and SL Mining Limited especially in the iron ore sector.
“This negotiation enables the Government of Sierra Leone to command a 10% free carried interest that is not dilatable. When we say not dilutable it means that no volume of new investment will be poured into this arrangement that will dilute Sierra Leone’s 10% free carried interest. This is a win for the people of Sierra Leone”, he assured.
He disclosed that there is an estimated seven thousand metric tons of iron ore which was mined out by SL Mining before the cancellation and with the settlement, the above mentioned quantum of iron ore now naturally becomes the property of SL Mining Limited.
He added that out of goodwill as per the negotiation, the SL Mining has also agreed on a fixed sum of money in the tune of twenty million dollars (20 million dollars) that will be paid to the government and the people of Sierra Leone payable in two installment. He reiterated that the first installment of ten million dollars (USD 10 million) by October 31st of 2021 and the second and final payment will be paid in December 2021.
Minister Kabba concluded that the arrangement also takes into consideration taxes and loyalties that could have been otherwise paid to government for the shipment of the iron ore.
On his part, the Minister of Information and Communications Mohamed Rado Swarray also described the deal as the best mining deal Sierra Leone had had since diamonds were first discovered in the country in the 1930s.
He reaffirmed that the just concluded win-win negotiation between SL Mining and the Government of Sierra Leone is just one of the many commitments of President Bio in keeping with the values of transparency and accountability in running of the state.
Minister Swarray recalled that sometimes in 2019, government of Sierra Leone had caused to cancel the license of SL Mining who then operated the Marampa mining company. He said they were very conscious and cautious as a government that the cancellation had implications on various aspects of Sierra Leonean lives ranging from jobs opportunities, government revenue bills and much more. He however noted that they did the cancellation for very explicit reasons and for the greatest good of the country.