ECONOMY-SIERRA LEONE: Taking Back the Mines

By Lansana Fofana Reprint | | Print |

Lansana Fofana

FREETOWN, Mar 30 1998 (IPS) - Sierra Leone’s government has put an abrupt halt to all foreign-owned gold and diamond mining in the country ahead of the announcement of a new national policy on mining.

“All licensed business persons dealing in gold and diamonds are ordered to cease their activities for two weeks and relocate to Freetown, ahead of a new mining policy which is due out soon,” said a recent statement from the office of President Ahmed Tejan Kabbah.

The Presidential Order, which was read on state radio and television at the weekend targetted foreigners who have dominated the West African nation’s mining sector for over 60 years. Sierra Leoneans who possess valid mining licenses were exempt from the order.

Sierra Leone’s seven mining districts — Kono, Kenema, Bo, Kailahun, Pujehun, Kambia and Moyamba — have huge deposits of gold, diamond, bauxite, rutile and iron ore.

“The government cannot sit idly by while its citizens are deprived of their own resources and so henceforth, indigenous citizens will be given priority in the mining sector,” the presidential statement added.

Since 1930, when diamonds were discovered in Sierra Leone, there has been a huge influx of foreigners into the sector. Mining is the second most important commodity-producing sector and the main source of foreign exchange.

In 1994, the sector contributed 16 percent of Gross Domestic Product (GDP) and 84 percent of export earnings. Analysts say there is potential for the sector to cover 55 percent of forex earned.

“Smuggling of diamond and gold by foreigners with the aid of local government officials for kickbacks has been responsible for the poor performance of the mining sector,” says minerals expert, Solomon Conteh.

Conteh told IPS that the president’s move is welcomed news, and may lead to the indigenisation of an area of economic activity that has been out of the reach of Sierra Leone nationals.

A new mining policy was introduced in 1994. It imposed a 2.5 percent royalty on precious mineral exports and a range of licence fees related to the size of mining operations. There was a provision for foreign nationals to form companies, and it was proposed that there would be assistance in the provision of security of tenure for artisanal mining activity.

According to some analysts here, foreigners from the Middle East have exploited minerals in Sierra Leone to finance causes in their own countries.

“Our diamonds and gold provided substantial funds for Lebanese militia groups and for the Palestine Liberation Organisation,” says Abdul Rashid, a Pan-African activist.

The Presidential Order also warns that stringent measures will be taken against those operating in the mining sector who obtained their citizenship papers during the nine-month reign of the Armed Forces Revolutionary Council (AFRC), which was deposed in February.

Evidence is now emerging that some senior officials in the department of immigrations may have been involved in the illegal process of citizenship papers. The government has started its probe and is interrogating the military junta’s principal immigration officer, Samuel Sanpha Sesay, who is in custody at the maximum security prison in Freetown.

Lawrence Myers of the Government Gold and Diamond Office (GGDO) says the smuggling of gold and diamonds deprived the country of millions of dollars annually.

Tighter measures in both the mining districts and border regions, if taken, would bring in revenue for the cash-strapped government, he adds. President Kabbah has actually declared a state of economic emergency in the country.