AYV News, August 28, 2025
Deputy Minister of Information and Civic Education, Bocakarie Abdel-Aziz Bawoh, has informed about a high-level government delegation led by the Minister of Finance, Sheku Fantamadi Bangura, which visited three chiefdoms in Tonkolili and Koinadugu districts, Diang, Sambaia, and Dansogoia.
The delegation signed Land Lease Agreements with landowners of the Kasafoni Iron Ore Deposits, marking a significant step in the government’s vision to participate meaningfully in the mining sector. Deputy Minister Bawoh emphasised that the Sierra Leone Mines and Mineral Development and Management Corporation (SLMMDC) will manage these concessions on behalf of the government, citing similar models in Namibia, Botswana, Ghana, and Nigeria.
Minister of Finance, Sheku Fantamadi Bangura, reflected on the country’s historic challenges in managing the mining sector. Since the 1980s, Sierra Leone’s model granted licenses to private companies while government relied only on taxes and royalties. Between 2018 and 2024, Sierra Leone mobilized close to $4 billion, yet only 5% reached the national treasury. In 2024 alone, mineral exports valued at $1.5 billion generated just $16 million in government revenue. The Minister described this as an unsustainable arrangement that failed to foster national development.
Minister Bangura explained that, guided by President Dr. Julius Maada Bio, the government designed a new framework for national participation in mining under the Mines and Mineral Development Act 2022. The Act grants the government 10% free carriage undiluted interest in all large-scale mining ventures and up to 35% equity stake in joint ventures.
To implement this, the Sierra Leone Mines and Mineral Development and Management Corporation was established, supported by a private sector vehicle, the Mineral Wealth Fund (MWF), fully owned by government. The MWF ensures that mining operations are financially independent of the national budget.
According to Minister Bangura, the government’s visit to the three chiefdoms was to complete the license acquisition process through signing Land Lease Agreements with landowners of the Kasafoni Iron Ore Deposits.
These deposits have been identified as strategic national assets allocated to the SLMMDC and the Mineral Wealth Fund for sustainable development and revenue generation.
Chairman of the Parliamentary Committee on Mines and Mineral Resources, Hon. Saa Emerson Lamina, provided a comparative analysis of the 2009 Mining Act and the 2022 Mines and Mineral Development Act. He highlighted key improvements:
Community Consent – Companies must now obtain approval from local communities.
Community Development Fund – At least 1% of gross profit must be allocated to host communities.
Surface Rent – Landowners’ share increased from 50% to 70%.
Hon. Lamina credited President Bio’s leadership for ensuring that mineral wealth benefits the people directly.
Hon. Lamina further explained that the Mines and Mineral Development and Management Corporation Act of 2023 cemented the government’s commitment to nationalising the mining sector. Section 13 empowers the Corporation to establish project companies to mine on behalf of Sierra Leone. Since 2023, the Kasafoni Iron Ore Deposits have been ring-fenced, ensuring no operations occur without government approval.
Chief Executive Officer of the Mineral Wealth Fund, Farid Alghali Esq., explained that the MWF was created under Section 15 of the Corporation Act as a special purpose vehicle to leverage mining assets for national development.
He revealed that the Fund has already attracted an investment partner committed to financing rail infrastructure, a port, mining facilities, and conveyor belt systems, worth hundreds of millions of dollars. Funding has been secured, and the first shipment is expected by November 2026. Under this model, government contributes the license and concession area while the partner provides capital, ensuring fair revenue sharing beyond the minimal 3% currently earned from mining.
