Youth leader claims government impeding iron ore mining
Pepel, Sierra Leone – A youth leader of Pepel in the Marampa Chiefdom of Sierra Leone claims the government is unwilling to expedite action to enable a British consortium, London Mining Company, to begin mining iron ore in the West African country.
Quoting a Memorandum of Understanding (MOU) signed between London Mining Company and the Government of Sierra Leone in August 2007, Alpha Komboh Thulla said the Minister of Mineral Resources Alhaji Abubakarr Jalloh might scrap the MOU.
However, the new government in Sierra Leone says it is reviewing its mining policy and this includes the deal with London Mining Company.
There is also a tussle between London Mining Company and African Minerals for the mine, which is estimated at some US$500 million.
Alhaji Jalloh is reported to have appointed a British consultant to review other options.
Thulla said London Mining Company was one of the first to invest in Sierra Leone , a war-torn nation, which investors were shying from, following a donors' conference in London organized by former British Prime Minister Mr. Tony Blair to convince international concerns to invest in Sierra Leone.
Thulla said the MOU indicated that the government of Sierra Leone had given a licence to London Mining Company to mine iron ore in Marampa in northern Sierra Leone.
London Mining Company also requested the use of the Marampa Pepel railway line, Pepel Port and facilities with the object of bringing the ore to the Pepel terminal for shipment.
The MOU said London Mining Company had expressed the desire to rehabilitate the deteriorated railway and habour facilities at the Pepel port and undertake and fund a feasibility study to determine weather the railway and ports facilities, with modification, can also serve other mining companies engaged in the mining of iron ore.
"London Mining Company will rehabilitate the Marampa Pepel Railway and port facilities at Pepel and use these facilities without exclusivity for the purpose of carrying out their proposed business plan for the operation of the Marampa Mine."
The Government of Sierra Leone agreed to grant London Mining Company "access to the Pepel Port and railway facilities to enable them to rehabilitate and use same without exclusivity for the operation of the Mines."
"Government of Sierra Leone will transfer ownership of the moveable railway assets and port facilities at Pepel at fair value, completely unencumbered by the 1 September, 2007 to ensure the fast track development of the railway and ports facilities by London Mining Company."
London Mining Company has submitted a proposal to a cabinet sub-committee under the chairmanship of Vice President Sam Sumana.
An official at the British High Commission has declined to comment.
Pepel - 04/10/2008
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