Sierra Leone government to revise mining leases. Freetown,...

Sierra Leone government to revise mining leases.

Freetown, Sierra Leone --- MININGREVIEW.COM --- 16 March 2011

The government of Sierra Leone needs to revise recent large-scale mining leases in order to obtain a better deal for its people, says President Ernest Bai Koroma.

"There is a need for us to improve on the agreements that were signed," he told Reuters in an interview at his office here.

"All of the agreements, including African Minerals", he added of the British company handling one of two massive iron extraction projects in the country The other is London Mining's redevelopment of an abandoned mine.

African Minerals says the Tonkolili project is the world's largest deposit of magnetite - a type of iron ore - and is estimated at 12.8 billion tonnes.

Reuters reports that both the African Minerals and London Mining agreements included substantial tax and other concessions out of line with previous legislation and the provisions of the new mining act. That act, which was drawn up with donor support, was intended to produce a more equitable environment for the exploitation of Sierra Leone's abundant mineral resources.

"When we took over government we committed ourselves to ensuring the benefits of the minerals sector were enjoyed by the people of this country," said Koroma, adding that he was confident of being able to alter the deals to the state's advantage.

"That is why we are negotiating; otherwise there would be no purpose," he said.

In statements made to Reuters late last year, both companies denied any unfair preferential treatment. London Mining said the incentives included in the deal reflected the fact that Sierra Leone was still considered as having a high investment risk.

http://www.miningreview.com/node/19228