By Amin Kef-Ranger

A viral social media post stating that the Minister of Finance, Sheku Ahmed Fantamadi Bangura, claiming that Sierra Leone exported USD 1.5 billion worth of minerals last year but that only USD 16 million was recorded in the National Treasury, suggesting significant losses and raising questions about the Ministry of Mines and Mineral Resources (MMMR), was a false assertion, misleading and does not reflect official records.

According to verified data from the Ministry of Mines and Mineral Resources, Mines and Mineral Sector Update from January to December 2024, Sierra Leone’s mineral exports in 2024 reached USD 1.12 billion, slightly down from USD 1.16 billion in 2023 due to operational adjustments at major mines, financing constraints and a global slump in diamond prices. Despite the marginal decline in export values, the sector’s overall revenue contribution to the state increased significantly.

It continued that Sierra Leone’s mining and minerals sector demonstrated mixed results in 2024, with robust revenue growth offsetting a slight dip in export values, according to the latest update from the Ministry of Mines and Mineral Resources (MMMR). The report, presented for the Economic Management Team Meeting, highlights significant expansions in iron ore operations, increased non-tax revenues, and ongoing infrastructure developments, while noting hurdles like market volatility and operational constraints.

In a year marked by global economic pressures, according to the report,the sector’s total mineral export value reached USD 1.12 billion, a 3.78% decrease from USD 1.16 billion in 2023. This decline was primarily linked to challenges faced by major players, including processing upgrades at Marampa Mines, financing issues at Sierra Minerals Holdings Ltd., and a global diamond price slump affecting Koidu Ltd. and Meya Mining. Despite this, the industry contributed substantially to the national economy, with non-tax revenues surging 34% to USD 49.4 million from USD 31.9 million the previous year.

The executive summary in the report underscores the sector’s financial strength. License fees doubled to USD 21.4 million, driven by higher charges for large-scale operations, while royalties climbed to USD 27.9 million. Overall mining revenue hit USD 49.4 million, up from USD 31.9 million in 2023. Iron ore dominated exports at 70.3%, followed by diamonds (9.2%), heavy mineral concentrates (8.9%), rutile (5.0%), and others. The Community Development Fund received contributions totaling over USD 1.66 million and NLe 56.2 million from key licensees like Kingho Mining (NLe 53 million) and Marampa Mines (USD 1.35 million).

Also portrayed was that License management saw notable activity, with the Ministry granting 20 new industrial licenses in 2024. Active licenses totaled 50, comprising 14 large-scale mining, 21 small-scale, and 15 exploration permits. By mineral type, iron ore led with 12 licenses (8 large-scale, 4 small-scale), followed by diamonds (11 total) and gold (9 total). Operational status varied: 14 licenses were in production, 10 halted, 6 in development, and 5 yet to commence. The Mining Cadastre Administration System (MCAS) tracked these, emphasizing a 75% operational rate for industrial licenses.

In the report, Production and export statistics reveal iron ore as the powerhouse, with 11.76 million wet metric tons (WMT) produced and 10.98 million dry metric tons (DMT) exported, valued at USD 784.5 million at an average USD 74 per DMT. Diamonds yielded 554,191 carats in production, with exports of 580,084 carats worth USD 102.3 million. Large-scale diamond operations contributed 517,584 carats at USD 187 per carat, while artisanal efforts added 62,500 carats at USD 457 per carat. Gold production stood at 5,825 ounces, exporting 5,755 ounces for USD 11.5 million. Other minerals included coltan (346 DMT, USD 1.7 million), bauxite (499,603 WMT produced, 259,903 DMT exported for USD 10.1 million), rutile (81,499 DMT produced, 67,464 DMT exported for USD 55.8 million), ilmenite (35,037 DMT produced, 48,476 DMT exported for USD 16.5 million), zircon concentrate (16,835 DMT produced, 7,606 DMT exported for USD 34.4 million), and heavy mineral concentrates (165,826 DMT, USD 99.4 million).

Historical trends, featured show export values rising from USD 0.31 billion in 2020 to a peak of USD 1.16 billion in 2023 before the 2024 dip. Revenue contributions have grown steadily, with total non-tax revenue from licenses and royalties reaching USD 49.4 million in 2024. License fees for all industrial and trading activities totaled USD 21.44 million, up from USD 10.9 million. Royalties broke down by mineral: iron ore at USD 17 million (up from USD 12.4 million), diamonds at USD 6.6 million, gold at USD 0.35 million, bauxite at USD 0.3 million, and industrial sand/exporters at USD 3.2 million. From 2010 to 2023, total mines revenue fluctuated, peaking at NLe 819,876 million in 2023, representing 12.4% of NRA revenue and 1.7% of GDP in 2022.

Looking ahead, production projections from 2025 to 2028 signal optimism. Iron ore from Kingho is forecast at 9.5-10 million DMT annually, while Marampa targets 3.5-3.75 million DMT. Bauxite from CTC Mining and Sierra Minerals could reach 2.5-4 million tons combined. Diamonds from Koidu and Meya are projected at 400,000-420,000 carats and 5,000-75,000 carats respectively. Rutile, ilmenite, and zircon from Sierra Rutile aim for 155,000-175,000 DMT, 63,000-75,000 DMT, and 37,000-50,000 DMT. Gold from Gold Lion and FG Gold is expected to ramp up to 1,250-3,500 ounces. Heavy mineral concentrates are steady at 200,000 DMT.

It was stated that employment remains a bright spot, with 15,929 workers as of December 2024, 14,807 Sierra Leoneans and 1,122 expatriates. Local hires dominate, with 372 males and 63 females in senior management, 1,083 males and 182 females as supervisors, and 9,566 males and 2,901 females below supervisor level. Female representation stands at 24.8% in company positions and 16.8% among contractors, highlighting progress in gender inclusion.

Updates on major mines reveal dynamic developments. Kingho Mining advanced its Numbara and Simbili projects, mining direct shipping ore (DSO) and saprolite at 55-57% and 43% Fe grades. A 12 million ton processing plant is ready for commissioning, with a 30 million ton magnetite plant 30-40% complete, targeting April 2025 finish. Energy infrastructure includes a 49 MW thermal plant commissioned in October and a solar project underway. Tailings facilities are expanding, with a new 90 million cubic meter dam set for March 2025.

Marampa Mines upgraded its processing to 3.75 MTPA, adding mills, crushers, and a 22 MW power expansion, alongside fleet enhancements and a new explosives magazine. Sierra Rutile operated DM1, DM4, and DM2 units, meeting forecasts despite water issues, with haul roads under construction and Lanti drilling completed. Sierra Minerals resumed after a six-month halt, planning 1.2 million tons of bauxite exports in 2025 and a beneficiation plant by Q1, contingent on a debt-to-equity swap resolution.

Meya Mining paused in October due to diamond market woes but aims for Q2-2025 resumption after audits. Gold Lion shifted to eco-friendly CIL processing, repaired equipment, and built a tailings dam and new facilities. FG Gold progressed on a 100-man camp, 80% complete TSF, plant site earthworks, and quarry blasting, awaiting mining equipment.

The National Revenue Authority (NRA) breakdown details historical revenues. Non-tax mines revenue grew from NLe 28,813 million in 2010 to NLe 671,472 million in 2023, with royalties and licenses as key drivers. Income tax ranged from NLe 80,237 million to NLe 309,904 million, while customs and excise added NLe 3,200 million to NLe 43,790 million. Total mines revenue as a percentage of NRA collections varied from 7.3% to 21.6%, and as GDP share from 0.9% to 3.2%.

Policy recommendations emphasize infrastructure support, regulatory stability, local employment boosts, and market monitoring. As Sierra Leone eyes growth through 2028, the sector’s resilience positions it as a vital economic pillar, despite external pressures. https://thecalabashnewspaper.com/setting-the-record-straight-sierra-leones-mining-sector-generates-1-12-billion-exports-in-2024/