An excerpt below which talks about needing an iron ore price of $70 to resume and that their liabilities have been partly paid ect.
12th May, 2016: The Parliamentary Committee on Mines and Mineral Resources, chaired by Hon. Amadu Kanu has returned from over a week-long oversight engagement with key players in the mining industry, for the first time after the defeat of the devastating ebola virus disease, in collaboration with the Ministry of Mines and the National Minerals Agency.
The Committee also held frank deliberations with officials in Timis Mining Corporation, Shandong Steel, Koidu Limited, Vimetco, Sierra Rutile Limited amongst others, with the view of the urgent resumption of the ore mines and to tackle collectively emerging challenges in the mining industry for the benefits of the affected communities, the businessmen, and the country at large.
In his opening remarks, the Chairman, Hon. Amadu Kanu said among other things to officials in the mining industry that the aim of the oversight was to “unearth the truths about what is currently plaguing the survival of the mining companies, and to chart the way forward to enhance development in the country, after the end of the cruel ebola virus disease”. He also said that “Sierra Leoneans are impatient to see the resumption of the iron ore mines again in the country”.
The Committee also probed mining operators within the framework of existing legislations, cognizant of settling their obligations to GoSL, suppliers, corporate social responsibility, adherence to local content policy, active community relations, processing of minerals within the country and the capacity of energy needed, comprehensive insurance coverage, resettlement of affected communities, livelihood, reclamations, finalization of mining lease and development agreements, and concerns on EIA licenses were also raised.
The officials of Timis Mining Corporation informed the Committee that the “ebola outbreak did not stop their operations”, but “the considerable drop in the price of ore” in the world market “gravely affected and stalled their operations of the ore mine at the moment”. They also assured the Committee that “despite the low and fluctuating price of the ore, once it spikes to $70 per ton over a certain timeframe, they will resume the ore mine as they already have a stockpile of 10,000 tons, awaiting shipment that is hugely dependent on the price of ore, which is currently lower in the market”.
The officials also recalled the boom of the ore price in 2011 when a ton of iron ore was sold at over “$100 per ton”. They also said that “they are currently doing care and maintenance of the mine and have also settled part of their liabilities with GoSL, suppliers, and staff, when they bought LMC, and promised to settle the rest when the price of ore improves considerably”.
This similar situation also holds true for Shandong Steel that has bought AML with all her liabilities. The officials of Shandong Steel also said that “the operations of the ore mine have stopped” because of the “drastic drop in the price of ore in the market” which they described as currently “crippling and slowing their investment” of “$ 1.5 Billion, out of a total of $ 2.5 Billion”. They also said that “they are paying 500 Sierra Leoneans for doing nothing at the moment, and also told the Committee that “they have met their obligations to GoSL, NASSIT, and NRA”, whilst raising concerns on the need to finalize their mining lease agreement, subject to the ratification of Parliament”. They said also that “ebola did not close the ore mines, but the prices of ore did”.
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(20min delay)