New Mines and Minerals Act in Sierra Leone

Sierra Leone’s Ministry of Mineral Resources is implementing an ambitious programme of legal and regulatory reform governing the minerals sector.

“This Act ushers in a whole new era for the sector’s development and management,” says Hon. Alhaji Alpha Kanu, Minister of Mineral Resources and Political Affairs. “It is a major departure from previous mining legislation that will bring important benefits to the economy, communities and the country. It is more comprehensive with respect to the issues it addresses, more balanced between the interests of the sector and those of communities, and more rigorous in terms of governance and oversight.”
The four objectives of the Act are:
 
•         Addresses several issues not previously covered by the law including health and safety, environmental protection and community development.
•         Tightens rules for administrators and mineral rights holders including application and reporting requirements.
•         Promotes investment and minerals sector development by ensuring security of tenure and preventing companies from holding land under license for too long without demonstrable activities.
•         Rebalances fiscal benefits – including higher royalty rates for precious stones and precious minerals - between companies, communities and government.
 
“Many of the key additions to the Bill revolve around social issues including community development, environmental protection and health and safety”, says Minister Kanu. “For the first time, certain licence holders will be required to enter into Community Development Agreements with the host community. In addition, a stronger governance and oversight regime is being introduced, led by much more stringent reporting requirements for companies and more important roles for the Minerals Advisory Board and the Mining Cadastre Office.”
 
With respect to the sector’s development, the Minister commented that “the new licensing regime is to be based on a ‘use it or lose it’ approach. A number of provisions have been introduced to substantially increase the obligations of a licence holder over time, thus encouraging exploration.”