marampa iron ore

So much for 18 months due diligence!!



FREETOWN - A dispute between rival English and domestic mining giants over rights to lucrative iron-ore deposits has forced armed police to intervene in Sierra Leone, officials said yesterday.

"The disputed area is a five-square-kilometre enclave in Marampa (120 kilometres north of the capital) and may contain iron ore worth $2-billion (€1.42-billion)," said a mining official in the area who asked not to be identified.

However, a government statement said that "police were sent to the area to remove personnel and equipment of the rival London Mining Company (LMC) from the African Minerals Limited (AML) licensed area."

The statement criticised British-registered LMC for "physically preventing government officers from carrying out their duties in respect of the demarcation" adding that the "action is considered a very serious contravention of the Mineral Rights obligation which resulted in a threat to peace."

The Ministry of Mineral Resources said in a report that an "unapproved co-ordinate plan contained a larger area than that covered by the exploration licence and mining lease that was approved by the Mineral Advisory Board."

The document which was signed by the Director of Mines, Umaru Boi-Kamara requested that the Attorney-general and Minister of Justice "take steps to rectify and/or amend the mining lease or have it cancelled."

Court sources in Freetown said LMC has filed a writ in a court in Sierra Leone seeking "an injunction to remove African Minerals workforce from two areas."

The Paramount Chief of Marampa Masemira, the site of the disputed enclave, Bai Koblo Queen, said: "We hope the problem will be resolved so that job opportunities will be available to our jobless youth."

In all, Sierra Leone's mining industry - infamous for its "blood diamonds" during a 1991-2001 civil war - used to account for 20 percent of the national economy and raked in nearly 80 percent of export earnings before the war, according to the government.

Dated 11 Sept 08.