The government of Sierra Leone has reportedly canceled or suspended the licences of some big mining projects, including the Tonkolili and Marampa iron ore mines, the Financial Times reported on Friday.
China’s Shandong Iron and Steel, which owns the Tonkolili iron ore project, and Gerald Group owns the Marampa mines, are two of the major companies operating in Sierra Leone.
As per the report, Tonkolili has challenged the decision in the country’s high court, arguing the government’s grounds to justify the cancellation of its licences were invalid as it had paid all its fees and royalties.
“We can confirm that a temporary operating suspension imposed by the Minister of Mines (MoM) expired on the 24 July 2019, following which the MoM requested that we do not export material until they review compliance with our mining license agreement with the NMA (National Minerals Agency),” the London-headquartered Gerald Group said in an emailed statement.
The company said it was cooperating with the Ministry and is expecting the matter to get resolved soon.
Notably, since his election last year, Sierra Leone’s President Julius Maada Bio has been reviewing mining contracts and considering making changes to the law that would ensure the West African nation benefits from its natural resources.
The Minister of Mines and Sierra Leone’s new mining minister Foday Rado Yokie is yet to comment on the matter.
