NOT FOR SALEVOLUME THREE

Koinadugu District

Over Reckless MiningCouncil Concerned

Page 2

"Rutile Is Not Beneficial To Us”…says Section Chief

Status report On AfricanMinerals

Mines Minister LaunchesThe Cadastre And OnlineRepository System…But How Effectively Will It Work???

Operations

MAY 2012

ININGM WATCHSIERRA LEONE

Produced by the Association of Journalists on Mining and Extractives in collaboration with Network

Movement for Justice and Development. Editor-In-Chief: Theophililus S. Gbenda - 232 76 982 623

Civil Society Network (CSN), anumbrella body of over fifteencivil society organizations in

K o n o D i s t r i c t , a p p r e c i a t e sgovernment's effort to improve theroad network in the country asprovided for in the second PovertyReduction Strategy Paper (PRSP II)commonly referred to as the “Agendafor Change”. CSN also appreciatesgovernment's decision as provided for inthe “Agenda for Change” to rehabilitatethe Matotoka–Kono Highway and theextra allocation to rehabilitate 20Kilometre road with the Koidu township.We are quite convinced that governmentindeed sets its priorities right for thedevelopment of the nation as improvedroad network is a major factor thatcontributes to the reduction of poverty andthe enhancement of socio-economicdevelopment of any nation.CSN is however gravely concerned aboutthe effective and efficient implementationof this very laudable vision.The present state of the Matotoka – KonoHighway and the rehabilitation work onthe Koidu township road has posed veryserious problems to both residents andpeople travelling in and out of KonoDistrict.Starting with the construction of the 20kilometre road project that started in April2011, we are concerned about the transferof contract from one contractor to anothera s t h e r e w a s a l m o s t p h y s i c a lconfrontation between Cymain (the firstcontractor) and Well Group that took over.Civil Society believes that there are laiddown procedures for the awarding andwithdrawal of contract which does notwarrant such an ugly situation. We are ofthe opinion that those procedures were notrespected.Civil Society is confused as to who is notfulfilling its own side of the agreement;whether the contractor or the Government

CIVIL SOCIETY NETWORK (CSN) – KONO DISTRICTPosition Paper

“Kono in Dire Need of Road- Government to Act Now”

of Sierra Leone as the construction workcame to a standstill at some point due tofunding constraints. Even though the workhas resumed, we are still worried about thequality and timely completion of the workwhich is haphazard and painfully slow.The effects are high risk of accidents and

health hazards as the township is litteredwith dug-up and almost abandoneddrainages and exposed iron rods.With regards the Matotoka – Konohighway, in as much as we commendgovernment's effort and pronouncementfor the commencement of the rehabilitationof the Matotoka – Kono highway in April,2012, we are equally disturbed about thepresent state of the road leading to thedistrict which significantly contributes tothe economy of the nation. From July todate, the road is almost impassable tovehicular traffic. This situation has led toscarcity of commercial vehicles andexorbitant transport cost from the few thatply the route. Other related effects are high

risks of accident, increased cost ofessential goods and services including theFree Health Care.Recommendations:In view of above, Civil Societyrecommends that:· Government makes a publicstatement on the contractual agreementwith the Contractor, Well Group on theKoidu township road rehabilitation.· Government closely monitorsthe rehabilitation work on the Koidutownship road to ensure quality and timelycompletion of the project.· Well Group to concentrate onfew roads at a time instead of digging upso many roads at a time.· Government to intensify the on-

going maintenance work on the Matotoka– Kono Highway to ease the presentburden on residents and travelers beforethe commencement of the proposedrehabilitation.

This publication issupported by

Promoting AgricultureGovernance and the

Environment (PAGE)through Network Movementfor Justice and Development

(NMJD)

it good enough for the citizens of SierraLeone? 2010 number from NRA clearlystates that the mining revenue that yearamounted to 1.4% of GDP. In IBIS'view, it is not enough. Why not?Because the extractive industries isexactly such an industry that preys onnon-renewable natural resources thatdoes not belong to them. Job creation isof course a result, as it is the result ofany business as it the only means inwhich it can function. But what comesin return for the non-renewable rawmaterial? What is the raw input?Providing jobs is not sound terms forforeign investments into extractives ofnatural resources from the point of viewof IBIS. It has to be coupled with asubstantial amount of revenue whichcan be used to develop the countrieswho own these minerals.We seek to influence as much aspossible on a global level thatregulations are changed for highertransparency, strike down upon taxhaven structures which is also thestructures of the largest miningcompanies in Sierra Leone. This we doto ensure that money and profits are notchannelled out of the country withoutbeing declared. On a national level, weseek to influence to increase the revenueintake and through civil societyadvocate for higher yields as a return forthe non-renewable resource. On a locallevel, the level of development seen andexperienced as a result of the miningoperations is pivotal. If people who liveside by side with mining activities donot feel that this is bringing anything inreturn, we are also loosing on the globaland national level. This meansp r a c t i c a l l y t o e n s u r e h i g h e rtransparency and compliance on themeasurements in place for localdevelopment, such as the CommunityDevelopment Agreements required bylaw, the DACDF monies, andstrengthening communities to bringthese issues to the agenda in theirinterfaces with the authorities and themining companies. It is the citizens'right to ask for more.But we need the foreign investments!Mining operations are extremely costly.There is no doubt about that and it is attimes fair for the mining company toinvest in their own operation rather thandeclaring profits. But we need to ask forfull transparency concerning this,keeping in mind that the extractiveindustries is traditionally one of the

People's right to demand returns from extraction of non-renewable resourcesFrom page 10 most corrupt and intransparent sectors of

all. But if we take for a moment thecompany perspective, we must accept thatmining operations are extremely costlyand that is a crucial argument when theynegotiate for tax exemptions for instancewith the Government of Sierra Leone. Butthe whole range of incentives that isp rov ided i s o f t en no t sound lysubstantiated or necessary. As was statedby one Revenue Watch Institute associaterecently: “Show me a company that leftdue to a government's change of fiscal

regime?” The natural resources will stay inthe ground if not exploited, they don't needto be sold off to the first and worst offer.Investments are extremely important to acountry like Sierra Leone, but they must bechallenged in their effect. “Prosperitydoesn't always flow downwards”prominent economist Noreena Hertz hasstated, and we have to ask what power whoyields? And is that really how we want it tobe?

www.ibiswestafrica.com / www.ibis.dk

Page 27 AJME Magazine May 2012

standardized and graduated penalties aswell as a technical support mechanism toremedy techn ica l p rob lems ofcompliance. The KP needs to examinesimilar international regulatory systemssuch as those governing financial andsporting bodies. The KP AdhocCommittee on Reform must developsuch a system for adoption at the 2012Plenary. The CS coalition will work withthe Adhoc Committee to advance thisissue.

Diamonds have not fulfilled theirdevelopment potential in many producercountries. The KP should use its goodoffices to create a wider forum amongmulti lateral , bilateral and non-g o v e r n m e n t a l d e v e l o p m e n to rg a n i s a t i o n s t o p r o m o t e t h edevelopment agenda in the diamondindustry. We will work with the KP andDDI to convene a major development

Development

conference in connection with the 2012Plenary in order to inform the widerdevelopment community about thechallenges and opportunities that existfor promoting diamond relateddevelopment. This will build on the oneday round table discussion in Windhoekin June 2009.

:Until there are clear indications ofserious KP reform, we intend to pursuewith immediate effect with interestedgovernments and industry a paralleldiamond regulatory body that willinclude all of the existing KP standardsand those included in the many reformproposals that have been discussed overthe years. This initiative aims to create ahigher level of certification forconsumers - a "Triple A Rating" that willbuild confidence and greater value in thediamonds of those countries andcompanies that participate.

6 . C L E A N E R D I A M O N DINITIATIVE

Kimberley Process Civil Society CoalitionBrussels Meeting, November 17-19, 2011 Communiqué

From page 26

But if we take for a moment thecompany perspective, we mustaccept that mining operations

are extremely costly and that isa crucial argument when they

negotiate for tax exemptions forinstance with the Government

of Sierra Leone.

Greetings! The Association ofJournalists on Mining andExtractives (AJME) is pleased to

bring you yet another edition of itsnewsletter called 'Mining Watch SierraLeone'. We are pleased with the progressmade thus far, and we wish to announcethat we have moved from a mere newsletterto a full blown magazine.Mining Watch Sierra Leone is designed todig out facts relating to the country's hugebut unprofitable mineral wealth, and topublicize our findings for the attention ofthe general public and more especially ourduty bearers whose handling of suchwealth has not been impressive from theonset.Sierra Leone, a small WestAfrican countrypopulated by less than six million people, isa resource-rich country that is yet to makeany meaningful headway in translatingsuch an exceptional blessing into thereality it was meant to be.This has left the country entrapped in theresource curse syndrome, and by allindications, there seem to be no hope for apositive change in the near future.Rather than emphasizing on ensuringbeneficiation from the mining andextractive industry, the former governmentand the current one have simplymaintained the status quo, and thesituation is even worse now with thegranting of undue concessions to miningcompanies coming to 'invest' in the sector.Could you imagine a country that is donordependent, with a substantial portion of itsnational budget being subsidized fromoutside, being so generous to multimilliondollars corporations to an extent ofgranting them tax breaks amounting tomillions of dollars.The 2009 Mines and MineralsAct, a usefuldocument if only implemented to the letter,was designed to change the country'sfortune when it comes to the exploitationof its natural resources. Sadly though, theusefulness of the said act has long beenrendered questionable, as there have beencases in which its provisions have beenopenly violated at the behest of miningcompanies. In fact, rumours are nowdoing the round that the much drummedabout act has been withdrawn for re-examination.While it goes without saying that theimplementation of the Mines and MineralsAct of 2009 has been seriouslycompromised, the government of HisExcellency Dr. Ernest Bai Koroma hasentered into yet a new phase of resourcemismanagement, by rushing with apetroleum bill to the house of parliamentwith a certificate of emergency, again at

the advantage of oil explorationcompanies flooding in to drill for our oil.It is worthy to note that with all the rush,doubts exist as to whether there aNational Petroleum Policy in place. Thisin itself is a major cause for concernbecause it was expected that thepreference should have been given to themuch delayed finalization of theNational Mineral Policy so as to informthe process of formulating a PetroleumBill, rather than the other way round.What is particularly worrying is the factthat while no concrete efforts have beenmade to correct the wrongs that havepaved the way for the massive pilfering orstealing of the country's naturalresources since the 1930's, a new frontierfor another round of exploitation hasbeen sanctioned with the mad rush intothe oil business.Just as mining contracts signed by thepast and present governments to a largeextent favour 'investors', so too is therushed petroleum bill in favour ofcurrent and potential 'investors' in the oilsector.Drawing examples from oil producingcountries such as Nigeria and Sudanwhere there have been spate ofinsurgencies, it is but obvious that ifconscious efforts are not made by thepolicy makers to effectively manage thecountry's oil resource and ensurebeneficiation, another round ofbloodbath could not be avoided in thelong run.In a recent research conducted by theAssociation of Journalists on Miningand Extractives (AJME), it came outclearly that the country currently has anextremely weak institutional andgovernance framework that inhibitspolicy makers' ability to adequatelyaddress the potentially negative effects ofnatural resource wealth. This is why weare yet to see any sense in rushing apetroleum bill to parliament. Is anybodyrunning after our policy makers or arethey under pressure to sell off thecountry?AJME recognizes the fact that some ofthe woes associated with the exploitationof the country's natural resourcesinclude government's unwillingness toapply due diligence and transparency inits dealings with present and potential'investors' and the lack of respect for theviews of the ordinary citizenryrepresented mostly by the civil societybody in the change or reform process.Our firm position is that it is about timethat the country makes the most from itsalready largely depleted mineral wealth,

or there is no need to continue mining. Tilldate, what the country is getting frommining is a mere pittance as compared towhat is being taken away by so-calledinvestors.In 2010 for instance, the country exportedminerals worth USD 199.5 million,amounting to 60% of exports. That sameyear, the contribution to state revenue fromthe mining sector was calculated at USD 32million, amounting to only 1.4 per cent ofthe country's Gross Domestic Product(GDP) and barely 11% of domestic revenue.This includes payee taxes from salaries toemployees; without which, revenue frommining would have been merely eight percent of domestic revenue.This is nothing in actual terms, and themajor reasons responsible for thisunacceptable situation are weak laws, lackof effective monitoring and the granting ofexcessive tax concessions and other specialbenefits to mining companies.For example, companies are not onlyexempted from paying income and exciseduties, but also from paying the Goods andServices Tax (GST), which every SierraLeonean pay on every commodity they buyexcept food, and which many believe isresponsible for the high cost of living thecountry is currently experiencing. Thispaints a picture of a perpetual street beggarwanting to give away his last and onlypenny to a multi-billionaire.We hold the view that Sierra Leone as acountry will continue to be donor dependentdespite its huge mineral wealth, if it fails tolay emphasis on local revenue generation.One way local revenue generation effortscould be boosted is by ensuring strictadherence to tax obligations especially bybusiness or profit related venturesincluding the operations of mining andextractive companies. To this note, we callon the Government of Sierra Leone toimmediately reverse all tax concessionsgranted to mining companies and do herebydemand that more seriousness is applied inthe management of the country's naturalresources. This is against the backdrop thatthe resources belong to the people of SierraLeone and should therefore be exploited totheir maximum benefit. Anything short ofthat is a disservice to the nation, for whichposterity will take no pleas.

From The Editors Desk

Chairman Theophilus S. Gbenda

Page 2 AJMEMay 2012

Kimberley Process Civil Society CoalitionBrussels Meeting, November 17-19, 2011 Communiqué

We welcome the KimberleyProcess initiative agreed toat the Kinshasa Plenary

(October 31-November 3) to studypossible reforms to the overalldiamond regulatory system.We have seen efforts to reform the KPin the past, however, and too often,badly needed reforms have beenblocked by political, commercial andvested interests.We will work with the reform processin the year ahead, but we expect to seetangible results by the end of 2012,with clear indicators of success at themid-year Intersessional meeting.Taking note of our absence at theKinshasa Plenary, we are making ourfull engagement with the KPdependent on the adoption ofsubstantial and sufficient reforms suchas those listed herein.The Kimberley Process Civil SocietyCoalition notes the decisions made bythe KP at the Kinshasa Plenary withregard to Zimbabwe. These decisionswere made in the absence of civilsociety and our concerns andobjections have been made known. TheCivil Society Coalition will work withthe agreement to ensure the bestoutcomes possible.We also intend to work on parallelinitiatives until it becomes clear thatthe KP is willing and able to addressfundamental concerns about itsoperation.We recognize the KPas a necessary, yetinsufficient, means through which toregulate the international trade ofrough diamonds, particularly thosecoming from high risk and conflictprone areas.The KP Civil Society Coalitionb e l i e v e s t h a t t h e f o l l o w i n grecommendations and outcomes are anecessary prerequisite to an effective,credible, clean and responsiblymanaged diamond supply chain:1

The current definition of conflictdiamond is outdated and does notaddress the way in which violence inthe diamond producing areas hasevolved in the decade since theKimberley Process was formed adecade ago.The KPmust include respect for human

. DEFINITIONS:Human Rights

rights in its minimum standards for allParticipants. By this we mean theprovision and administration of securitymeasures in Participants' diamond miningsectors should be consistent withinternational human rights law.As a means of addressing the potential forsmuggling and other concerns relating toKP compliance in artisanal diamondmining, Participants should furtherprovide and administer security standardsand measures consistent with internationalhuman rights law with respect to diamondm i n e r s a n d m e m b e r s o f l o c a lcommunities.Until the KP has adopted such clear humanrights provisions, we will work withnational, regional and international humanrights organisations, including the UNHigh Commissioner for Human Rightsand other UN organs and human rightsmechanisms to inform them of the KP'sunwillingness and inability to includehuman rights as a basic standard in thediamond industry.

The KP peer review mechanism hasconsiderable value but it also haslimitations. The civil society coalitionbelieves that the KPCS would greatlybenefit from additional independentoversight. As a means of informing the KPon this issue, we recommend apreliminary, independent, professional“review of reviews” to examine:? the quality of the review visits andmissions that have already been done;? a c t i o n t a k e n o n t h erecommendations;? follow-up by the KP.This should be agreed at the IntersessionalMeeting with a target completion date bythe 2012 Plenary.

Inclusion of the Cutting and PolishingIndustry in KPOversight and StatisticsThe exclusion of the cutting and polishingindustry from the KP system creates avacuum between the production andtrading system and retailers andconsumers. Until the cutting and polishingindustry is included in KPCS oversight,the Civil Society Coalition will work toinform retailers and consumers that therecan be no confidence in the KPcertification system.Clearer Responsibilities for Industrythroughout the Supply Chain

2. GOVERNMENTS:Independent Monitoring

3. INDUSTRY:

The Civil Society Coalition will work withindustry, the KP, and the OECD to create asupplement on diamonds as an integralpart of the OECD Due Diligence Guidancefor the Responsible Supply Chains ofMinerals from Conflict-Affected andHigh-RiskAreas.

We insist that the KP adopt clear languagein support of the role of civil societyorganisations in the monitoring of theircountry's KPCS compliance, that memberstates respect the role of civil societyorganisations in this process and accordthem full protection under the law. Thecivil society coalition will work with theincoming Chair to draft appropriatelanguage for adoption at Plenary 2012.

Until the KP has adopted an effectivedecision making policy, and as long as itretains its dysfunctional “consensus”decision making arrangement, the CScoalition insists that consensus on anydecision must include the agreement of theCS coalition and the World DiamondCouncil. Without the involvement of allstakeholders of this tripartite initiative, andwithout the agreement of observers onissues before the KP, there will be noconsensus

Transparency was a founding KP principlebut in practice it has proven very elusive.As a minimum, we believe that all KPmonitoring reports, participants' annualreports, and statistics should be madepublic. Until this happens we will workwith other organisations, including EITIand Transparency International to create aKPTransparency Index showing which KPparticipants make these reports publiclyavailable.

The KP needs a permanent, small, flexible,p ro f e s s iona l , t e chn i ca l suppo r tmechanism to support the work of theChair and the KP Working Groups, and toprovide analysis, archiving, and dialoguefacilities. The need for this has become amatter of urgency and details must beagreed at KP Intersessional in June andoperationalized by the end of 2012.

ianceAny regulatory system needs a system of

4. CIVILSOCIETY:The Role of Civil Society Organizations

5. KIMBERLEYPROCESS:Decision Making

Transparency

Administrative Support Mechanism

Wider and Better Compl

Page 26 AJME Magazine May 2012

Continued page 27

By AJME TeamT h e E x t r a c t i v e I n d u s t r i e sTransparency Initiative (EITI) waslaunched at a world summit fors u s t a i n a b l e d e v e l o p m e n t i nJohannesburg, SouthAfrica, in 2002.The main thrust of the initiative is topromote, strengthen and deepentransparency and accountability in theextractive sector through regularreconciliation and publication ofpayments made by companies andrevenues received by governmententities.Sierra Leone acceded to the EITI In2006 and became a Candidate Countryin 2006. In 2010, Sierra Leonepublished both the reconciliation andvalidation reports, but is yet to becomean EITI Complaint Country likeLiberia, Ghana and Nigeria to name afew, due to unmet indicators.In the march towards EITIcompliance, the country has taken thefollowing steps:a) Appointed a new Championin the person of Dr. Kaifala Marah, theChief of Staff of the Republic of SierraLeoneb) Launched in July 2011 a twoyear work plan that has been approvedby the Multi Stakeholder Group(MSG)c) Established a Sierra LeoneExtractive Industries TransparencyInitiative (SLEITI) secretariat at No.29 Dundas Street in Freetown andappointed a National Coordinator inthe person of Kenie Lamind) Drafted a SLEITI bill that issoon to be passed into lawe) Recruitment of staff to runthe SLEITI secretariat.Some of the major challenges facingthe process of implementation includesus ta in ing commitment f romstakeholders (government, civilsociety, mining companies anddevelopment partners), ensuring thatall Ministry, Departments andAgencies (MDAs) and companiesreport, disclosing all materialpayments, ensuring data reliabilityand disseminating reports for publicdebate.Sierra Leone has so far produced the2006-2007 report and is expected toproduce the report for 2008, 2009 and2010 in December 2012, or face therisk of not being validated in order tobecome a full fledge EITI Complaint

Page 3

Status of EITI implementation in Sierra Leone

Country.By way of an advisory opinion, the AntiCorruption Commission (ACC) hasunearthed serious discrepancies betweenpayments made by mining companies andrevenues acknowledged by government.Following a data reconciliation exercise,the findings show that unresolveddiscrepancies in 2006 amounted to$220,155 (Le 515,779,256) and in 2007$235,151 (Le 115,829,908). Thesediscrepancies are currently the subject ofinvestigation, but preliminary post-mortem points at government's failure toreport revenues in their templates or theinability to substantiate paymentsreported by companies. Also, somecompanies were unable to provideadequate supporting documentation foramounts reported as payments togovernment entities.The discrepancies show quite clearly thatthe EITI is not yet fully embedded inSierra Leone as in other countries. Whilethe country works towards its secondvalidation, it is worth noting that the MultiStakeholder Group (MSG), whose role iscritical if only to attain a candidate status,is currently malfunctioning and to a largeextent sidelined.Of course the need to capacitate and fullyoperationalize the SLEITI secretariat so asto effectively handle the administrativeaffairs of the implementation processcannot be overemphasized.The present scope of the SLEITI is limitedto extractive industries in gold, diamond,rutile and iron ore, but given the naturalresource endowment of the country, plansare well advanced to include the buddingoil sector, timber and marine resources.At a ceremony marking the launching ofthe SLEITI work plan and signing of amemorandum of understanding held on20th July 2011 at State House in Freetown,

stakeholders from government, miningcompanies and the civil societydemonstrated their commitment toensuring the successful implementation ofthe process in the country.Representing the Government of SierraLeone, the Chief of Staff, Dr. KaifalaMarah, who happens to be the newSLEITI Champion, said “Sierra Leone is acountry in a hurry to catch up” adding that“We have to meet international standardand apply best practice”.He noted that the government iscommitted to the EITI process because ashe puts it, “We want to be able to betransparent and inclusive”.Dr. Marah informed of plans to revamp theSLEITI website and that the process oflegislating a special EITI law is in full gearas a draft bill is now in place.According to him, the government hasasked the ACC to investigate thediscrepancies earlier mentioned relatingto what the companies say they pay andwhat government acknowledges.He called for the cooperation ofstakeholders involved in the process,pointing out that “We do not win becausewe are a resource-rich nation. We winwhen all stakeholders are involved andwhen we use what we get from ourresources to the benefit of the country andits citizenry”.Dr. Marah furthered that his reputation isat stake and cannot afford to preside over aprocess that will end up not bearing thedesired fruits.Speaking on behalf of mining companiesoperating in the country, Ibrahim SorieKamara of Koidu Holdings Limited(KHL) registered their commitment to theEITI, saying, “It exonerates us in lot ofways”.

Dr. Kaifala Marah, Ibrahim Sorie Kamara and AbuBrima signing the MoU

Continued page 25

AJME Magazine May 2012

By Theophilus S. Gbenda and JohnKamara

Highlights:

The road networks leading fromMagburaka to Bumbuna andfrom Binkolo to Bumbuna, are

in their worse especially during therainy season, with scores of potholescaused by fleets of heavy duty miningrelated trucks and caterpillars plyingthe routes.Just few months ago, a fatal accidentoccurred along one of the routes leadingto the mine site, leaving at least threemine workers dead and several othersseriously injured.Employment still remains an issue,although so far a good number of jobshave been awarded.African Minerals hasa couple of subsidiary companiesworking on contract with it. Allcompanies in question are foreign-basedand providing different services.Amongst the contracted companies so farare CCECC (Engineering/Construction),H a w k ( C o n s t r u c t i o n ) , E l i t e(Construction), BCM (Mining), Dawnus(Construction), ATS (Catering), EMDrilling (Drilling), Ansenco (MineralProcessing), WBHO (Train LineConstruction) and BME (Blasting).AML, being a private profit makingcompany, is not under any obligationwhatsoever to award contracts through acompetitive bidding process. Thecompanies mentioned therefore weredirectly contracted and are covered bythe terms of the agreement betweenAMLand the Government of Sierra Leone(GoSL).Article 14 (a) for instance states that'Subject to the terms of Article 19, for theduration of this Agreement, the GoSLshall exempt the Company and itsnominated contractors from all dutiesand taxes in respect of imports of miningmachinery, plant and equipment,infrastructure and consumable miningstores as defined in Schedule 3'. Some ofthe subsidiary companies mentioned aresaid to be racist. One such company isHawk, which is on record of contracting

mainly Whites. Machines such asexcavators, bulldozers, rollers, front wheelloaders and graders to name a few, whichcould be driven by experienced local staff,are all being operated by Whites.The argument is that the said equipment areexpensive and that leaving them in the handsof "poorly trained and ill-experienced SierraLeoneans" will only expose them to earlydamage. The company also has on contractWhites for masonry and carpentry jobs.One worker on contract with the companysays he gets Le 1,500 (One Thousand FiveHundred Leones) per hour and works from7am-6pm.While some categories of workers aregrumbling over low wages, others seem quitesatisfied with what they are being paid.Those with direct employment withAML aregetting fatter salaries as compared to thoseemployed by the subsidiary companies. Onelocal processing lab technician under directemployment with AML disclosed that hereceives One Million Five HundredT h o u s a n d L e o n e s p e r m o n t h a sremuneration. "I am very satisfied with thatamount, considering how much otherworkers are getting", he said.%80 of those employed by the subsidiarycompanies get a basic salary of Le 250,000(Two Hundred and Fifty Thousand Leones)

Status Report On African Minerals OperationsPage 4

per month, with no housing allowance.Permanent local staff members of AML areentitled to an annual medical allowance of Le5,000,000 (Five Million Leones). Entitledworkers have to turn up for full treatmentcovering the estimated cost, because if theydon't, cash refund equivalent is not an option.

It goes without saying that local staff arediscriminated against in the mines. A typicalexample is the prevalent of two differentkinds of kitchens. The one is named AfricanKitchen that serves typical Sierra Leoneandishes, while the other is named EuropeanKitchen that serves exclusive European,Asian and other western or continental

Discrimination

dishes. The so-called African Kitchen ismeant for Sierra Leonean workers only. Allthe other nationals including employeesfrom Ghana and other African countries areentitled to the goodies that the EuropeanKitchen provides.

In the Bumbuna general area, crowds ofpeople could be seen roaming from onepoint to another. Many people have migratedto Bumbuna in search of job. Some jobseekers came all the way from Bo in thesouth, Kono in the east and Kabala in thenorth. They however feel discriminatedbecause they are considered as outsiders.This is against the backdrop that indigenesof the mining community are reportedlygiven preference when it comes to unskilledjobs.Ferengbeya, where the mining operations ofAML are centered, is said to be sitting on topa variety of minerals including iron ore,gold, lead, zinc, metal and white mercury. Inwhat could rather be termed as a cunningmove, the company once known as SierraLeone Diamond Company (SLDC),metamorphosed into African MineralsLimited (AML) so as to include otherminerals in its mining expedition.

Social factors

According to the 99 years infrastructuralagreement between the AML and the GoSLand based on the commitment of AML byway of its corporate social responsibility,locals will have access to the train service(free of cost) to move their agriculturalproducts from point A to B as the case maybe. This possibility is now redundant, as ithas come out clearly that the trains are forexclusive official use.Because no passenger is allowed, one couldbetter refer to the so-called trains ascarriages.

CONTINUED PAGE 5

AJME Magazine May 2012

A view of Bumbuna town

Massive crowd in admiration of ALM’s train

accountable and I am emphasizingthis point because I believe the keyrole of the civil society is to demandtransparency and accountabilityfrom governments, and at the sametime tracking revenues streamingfrom the exploitation of naturalresources.Parliaments inAfrica also have a roleto play because of their oversightresponsibilities that enable them todemand transparency. The extractivesector is the most corrupt, with verybig players involved. This is wherethe fight against corruption is mostneeded.Natural resources are said to be one-of assets, and therefore investmentinto them should be sustainable andpro-poor growth should be the focusof their exploitation.In the case of Sierra Leone,diamonds were considered the mostpreciuous, which was why thediamondeferous district of Kono inthe east was dubbed the bread basketof the country.Iron ore, gold, bauxite and rutile arealso precious and important becauseof their strategic natures. Justrecently, oil came into the picture.With all these resources, the questionmany people have asked is what doesthe country stands to benefit.Already, some of these resourceshave been depleted considerably,with nothing to show in comparativeterms.What are the development outcomesfor Sierra Leone from the mining

Africa resource curse syndrome What is responsible?From page 8 industry? This is amongst the many

questions asked today. But who isprepared to proffer an answer?The introduction of the ExtractiveIndustries Transparency Initiative(EITI) is no doubt a blessing in disguisefor the country, as it reduced smuggling,which was a big issue, and alsoincreased government's intake frommining.The reviewing of existing miningcontracts which is now in progress, is nodoubt a step in the right direction.Thanks to pressure plied by civil societyorganizations advocating for justmining in the country. The reviewprocess however seems to be shroudedin deep secrecy.Civil society activist, Abu Brima of theNetwork Movement for Justice and

understanding the intricaciessurrounding the sector, pointing outthat governments in resource-richcountries prefer investing resourcerevenues on consumption toinvesting in productive areas so as todiversify their economies towithstand post-resource economicdifficulties.The irresponsible management ofnatural resources is not limited toSierra Leone alone. Other countriesaround the globe, and Africa inparticular, are sharing the same

plight. Such countries, including SierraLeone, are deemed to be victims of theresource curse syndrome.At the end of the two-week training, itwas resolved that African governmentsneed to do more in the area oftransparency, that the civil societyshould take the challenge of monitoringand engaging stakeholders involved inthe sector, that parliamentarians shouldensure that they formulate laws that arepeople-friendly, while journalists are toput more effort in playing the watch-dog role.The training included a field trip to a

Training On Oil and Gas And The Role Of The Media Ends In GhanaFrom page 19

Page 25

mining community in the TarkwaDistrict in western Ghana and theAshanti Gold mines, with the aim ofenabling participants have first handinformation of how it looks like in termsof mining operations and what thesurrounding communities are gettingback by way of benefit.Tarkwa is one of Ghana's major miningcommunities, hosting several of thecountry's gold mining companies.Tarkwa is faced with the paradox ofplenty, with poverty seen all over theplace. Only few people in the district arewell-off, as in the case of Sierra Leone.

Development (NMJD), in a recentengagement referred to the trend ofmining in the country as catastrophic,stating that “The policies, regulationsand fiscal regime are all skewed towardsthe advantage of so-called investors,with a number of illegal concessionsand tax holidays given to companies”.This is not helpful to the country,considering the damages caused to theenvironment as a result of miningactivities. With this being the state ofaffairs and given that mining iscontributing only 1.4 per cent of theGDP, civil society activists want amoratorium on mining activities so thatthe sector could be properly regulated toensure maximum beneficiation, beforethe country starts again with suchactivities.

The reviewing of existing

mining contracts which is

now in progress, is no

doubt a step in the right

direction. Thanks to

pressure plied by civil

society organizations

advocating for just

mining in the country.

The devasta t ion caused on theenvironment courtesy of the railway lineconstruction is such that a separateEnvironmental and Social ImpactAssessment (ESIA) is needed if only to setup mitigating mechanisms necessary toprotect the environment and safeguardingthe rights of persons who are going to bedirectly affected as a result.

A number of fright-stricken indigeneshave already been displaced from theirancestral homes and relocated fivekilometres off Bumbuna town, at a placenamed Ferengbeya Two. Their houseshave since been demolished to give wayfor the railway line to pass. Alsodemolished are schools (e.g. BaptistPrimary School Ferengbeya) and suchother structures standing in the way of themapped out railway line. Those initiallyrelocated were housed in makeshift pan-body structures, which they rejected butwere prevailed upon by government andtheir traditional authorities.

DISLOCATION/RESETTLEMENT

Status Report On African Minerals Operations

has approved it". He said their greatestworry now is whether they will beprovided with land to do their usualfarming. He pointed at his massiveplantation and shook his head for a while.According to him, their crops were eversince assessed, but compensationdelayed.Meanwhile, Mr. Nonkoh Sesay saidwhile awaiting relocation, strict orderswas given to them not to embark on anyfarming activities. Adding to that is thefact that the river where they used to goon fishing is no longer accessible due tothe passage of the almighty railway line.Migrants from other parts of the country,who had settled at Ferengbeya fordecades and even built houses there, werecompensated for their properties andasked to leave the township withimmediate effect. The entire Ferengbeyaarea has been leased to AML for miningpurpose, thereby putting the company ina strong position to order even theindigenes to vacate.

Because of the high population currentlyin the Bumbuna general area, prices ofbasic commodities have gone upunprecedentedly, prostitution in the oncetraditional community has taken a turnfor the worse and house rent has gone upto between Le 35,000 (Thirty-FiveThousand Leones) and Le 50,000 (FiftyThousand Leones) for a single room permonth.The price of cookery has also gone up toLe 3,000 per plate and above. Beforenow, house rent was Le 5,000 (FiveThousand Leones) per room, andcookery Le 1,000 (One ThousandLeones) per plate.Most of those who have gained

Adverse social/economic effects andemployment malpractices

Page 5 ,

employment with AML and its subsidiarycompanies confessed that they bribed theirways through. For instance, if you'refortunate to be employed by any of thesubsidiary companies, you have to commityourself to paying a specified amount ofmoney either up-front or on a monthlybasis, to the official that made youremployment possible.If you're employed as a driver, thecommission (bribe) to pay is Le 300,000(Three Hundred Thousand Leones), and fora labourer job, the commission or bribe isLe 100,000 (One Hundred ThousandLeones).In the mines, workers are exposed to dangerdue to the lack of adequate protective gears.Jonathan Gibao Massaquoi, an AMLemployee, lost his left eye when the electricoven he was operating on site exploded. Hissituation was life threatening to say theleast, and reports say had immediatetreatment abroad been accorded him, hemay not have lost the said eye. It was few

As an incentive, each of the resettledhousehold was given the sum of Le600,000 (Six Hundred Thousand Leones)as 'DisturbanceAllowance'. Each resettledhousehold receives a bag of rice plus Le50,000 (Fifty Thousand Leones) monthly;a measure taken to address the food needsof the affected households, since they nolonger have land on which to do their usualtraditional smallholder farming activities.The recipients, mostly jobless, considerthe ges tu re to be r id icu lous lyunsubstantial, given that they now have tobuy everything from pepper to other itemsneeded for their daily cooking.The company's website on www.african-minerals.com is completely silent on theissue of ResettlementAction Plan.The 'Young Boy' Chief of Ferengbeya,Nonkoh Sesay, who was awaitingrelocation in September 2011 said, "Weare powerless, and therefore don't have achoice". He went further to say "We arenot happy about our plight, but we havenothing to do as it is the government that Continued page 24

Off it goes

AML Railway Line

A distant view of the 900 Man Camp

Polluted water running from a public tap

AJME Magazine May 2012

From page 4

months after the accident that the AMLmanagement decided to fly him to Ghana,for what could best be described as over-delayed treatment. Imagine that it was a so-called expatriate involved. He would havebeen flown out of the country almostimmediately for advanced treatment.

It could be noted that strike actions havebeen common occurrences in the Bumbunaarea since AML started operations there.The protests have centered mainly onemployment issues, and recently, theprotestation took a different dimensionwith AML workers staging a sit downstrike to say enough is enough. The saidprotest action that was meant to be peacefulturned violent when armed policepersonnel started firing live rounds andteargas indiscriminately across thetownship, thereby killing one person andwounding eleven others. The workersprotested over low wages, abuse,discrimination, the fact that they have notrade union representing them and also thefact that they have no job security.

Tension, conflicts and violations

Another protest action that occurred inthe Bumbuna general area sometimelast year was over the right to food.Apparently, the indigenes were notinformed or educated about the scopeof the concession granted to AML.They were therefore taken by surprisewhen one morning they woke up andsaw their plantations being bulldozedbyAML heavy duty machines, withoutdue reference to them. As a result, thewhole community including children,elderly men and women and youthswent on the rampage to demonstratetheir anger at the company's blatantmove to undermine their right to food.The police intervened with very heavyhand to put off the strike action,physically manhandling the clearlyprovoked indigenes and apprehending

over one hundred of them. Few werereleased after few hours, while the bulk ofthem were detained for over a month inpolice cell and released afterwardswithout bail or charge.The heavy handedness with which thepolice came down on the people ofKemedugu and its surroundings forstaging the said protest has implantedpermanent fear in the minds of the people.The fear is such that they are now afraid torise up even in the face of forcefulrelocation from their ancestral homes.Their current frame of mind is that if theydare do anything to hamper the operationsof the company, it is the governmentdirectly that they would be challenging.The fact thatAML did everything possibleto complete the railway line in record timeso as to fast track the process of

transporting the iron ore and possiblyother minerals, without making any realeffort to fix the road networks its officialsand heavy duty trucks are plying on a dailybasis to and from the mines, sends a clearsignal that the company is particularlyinterested in the minerals and not so muchabout what the country and its peoplebenefit.Meanwhile, the proposed construction ofthe so-called 900 Man Camp in the hill topof Bumbuna has caused the pollution ofthe township's traditional water sourcethat has served the people from the 1970still date. This has brought grave sufferingon the people, as most of them now have toresort to buying spring or packet water fordrinking. Assurances of addressing thewater problem in the township remainunfulfilled, thereby leaving the peopleprone to a variety of short and long termside effects and ailments.News coming from the hill top where the900 Man Camp is to be situated is far frombeing encouraging. Accordingly, anhelicopter comes there frequently.Whenever the helicopter is destined for thecamp, the workers would be told to go intotheir offices and keep themselves busy.“Frank Timis is coming”, they'll be told.No worker is allowed to go anywhereclose to the helicopter. It is an exclusiveVIP affair. Some concerned workersdisclose that anytime the helicopter goesthere, it leaves with something; possiblyraw gold or some other minerals.Apart from the suspicious helicopter,AML also operates fleets of sealed trucksthat could be seen going up and down withescort. No one sees inside the trucks, andno one has bothered to ask. The suspicionis that those trucks might be carryingprecious materials.While it was operating under the nameSierra Leone Diamond Company (SLDC)in Kono District, the company, with aprospecting licence, used to transportquantum of raw gravel from Tombodu toits laboratory in Bo. Hundreds of carats ofdiamonds were discovered in the process.Whatever became of those diamonds is anentirely different story, but evidencesabound that the company did export thegems, though without an exporter's licenceat the time.Meanwhile, AML is now producingquantum of precious iron ore courtesy ofits Tonkolili project, and has already madeseveral shipments abroad.

Status Report On African Minerals OperationsStatus Report On African Minerals OperationsFrom page 4&5

Page 24

environmental impact, including:vegetation; degradation of forest andland; water supplies (contaminationas well as availability); siltation ofrivers and creeks; and social andeconomic costs associated with themovement of communities due todestruction of cultivable land.The government of Sierra Leonewould like to continue seeing themining and exportation of diamondsand gold, but is yet to developenforceable policies to addressenvironmental degradation andcannot afford to invest any revenueinto environmental conservation oreducation. It is up to the governmentt o d e v e l o p c o m p r e h e n s i v eguidelines for mining activitiest a k i n g i n t o c o n s i d e r a t i o nenvironmental protection and thehealth and safety of the generalpopulace.Mining companies whose activitiesare adversely affect ing thecommunities in which they areexcavating and digging fordiamonds are yet to fully committhemselves to according victims oftheir operations the respect andattention required.The operations of mining companiesoften result in degradation of thevast expanse of land exploited,thereby warranting the risk offlooding of surrounding villages

from dredging ponds, siltation in tidalcreeks and dislocation of severalvillages.

Some villagers, including the elders, areexpressing dissatisfaction at thedisplacement, complaining that they areunable to pursue agricultural activitiesin their new settlements. Thecommunities are not consulted from theonset or in the resettlement process.Env i ronmenta l i s t s and hea l thorganizations who would like to seethe government take a more active rolein protecting the environment andenforcing such a stiff law againstdefaulters, remain unimpressed with thecurrent environmental safety measuresapplied by the government.At present there is a lack of capacity onthe part of the Government to intervenein some areas of environmentalconcern.The Government has entered into newagreements with large-scale miningcompanies requiring them to developcomprehensive environmental actionplans for mitigation of environmentaldegradation. Unfortunately, whileshowing a high level of commitment,these agreements lack in depth.Additionally, in respect to the small-scale mining activities, the system offees in the artisanal mining do not takeinto account the extensive and severeland degradation of the mined-outareas.

Sierra Leone Mining And EnvironmentFrom page 20

AJME MagazineMay 2012

Executive Summary

In September 2009 the USindependent oil firm Anadarkoannounced the discovery of a

hydrocarbon system off the SierraLeonean coast.

The company operates the Venus B-1exploration well in its offshore block SL-6/07 on behalf of its partners Woodside(Australia), Repsol YPF (Spain) andTullow (UK/Ireland). The actual size of thefind is unknown as appraisal is notexpected to be completed until 2011.Current estimates are tenuous at best,extrapolating from the Jubilee find inGhana some have hinted that the find maybe as high as 250m boe. If these numberswere to be confirmed, this would still makeSierra Leone a comparatively smallproducer: Nigeria's proved reserves standat 37.2bn barrel and those of EquatorialGuinea at 1.7bn. Estimates for Ghana'sreserves still vary widely, but the country isthought to possess about 1bn barrels of oil.

Petroleum exploration and productionwill become a major contributor todomestic revenue mobilization andp r o v i d e d e v e l o p m e n t f i n a n c i n gopportunities that are likely much greaterthan those of the current mining sector.Given the lack of information on theamount of recoverable reserves, future oilprices, as well as companies' capital andoperating expenditures robust estimatesregarding the potential tax revenues cannotbe given, but a vague and conservativeapproximation suggests that revenueswould amount to no less than 100 millionUSD per year.

The current legislative framework is setby the Petroleum Exploration andProduction Act of 2001. Beyond that, theIncome Tax Act of 2000 and subsequentamendments govern taxation in the sector.Individual contracts with oil companies arebased on a Model Petroleum Agreement,which in turn is based on the PetroleumAct.

The Petroleum Exploration andProduction Act established a PetroleumResources Unit (PRU), which serves as theregulatory authority for the sector. ThePRU is part of the Office of the President.Its task is to monitor, regulate and facilitateoil and gas investments. It negotiatesPe t ro leum Agreements wi th o i lcompanies.

Although the PRU has a rather technicalbrief, the Unit has significant decision-making/discretionary power.In a regional perspective, the fiscal terms -i.e. tax and royalty rates, allowances andgovernment participation - for theextraction of petroleum are relatively

investor-friendly. In that respect, theGovernments' reputation however will beharmed by demarcation issues, whichwere until recently subject to anarbitration case with the InternationalChamber of Commerce (ICC).

In 2009 the President established a taskforce, headed by the Secretary to thePresident, Emmanuel Osho Coker, todevelop a new petroleum policy forSierra Leone and restructure thePetroleum Resources. As consultationslacked in depth, awareness of the policyappears to be very limited beyond thosewho were directly engaged. The draftpolicy reflects concerns regarding goodgovernance and prudent economicmanagement of oil revenues for currentand future generations of SierraLeoneans. Its success however, willlargely depend on the commitment andcapacity to translate the policy intoaction. It seeks an overhaul of the existinginstitutional framework governing thesector.

The draft policy also makes someprovisions for the reform of the fiscalsystem. While the reform situation is stillvery fluid, there is a sense of urgencyamongst some policy makers to put a newpolicy in place. However, not allstakeholders in the sector are adequatelyequipped to engage in the reform processand public discussion of Sierra Leone'spetroleum policy.

The Government is also planning to setup a National Oil Company. The degreeof state participation sought and preciseinstitutional set up have not been clarifiedyet. There needs to be a clear distinctionbetween commercial and potentialregulatory role of national oil companies.Furthermore, there is crucial potential ofattracting international investors.Currently CSOs engagement with oil hasbeen minimal. This is due to a certainasymmetry of information which causesCSOs to shy away from more activeinvolvement.Since the announcement of the find inSeptember 2009, a number of donors andNGOs have been involved - to varyingdegrees - in the petroleum governanceand policy reform: The Revenue WatchInstitute, Accra-based Africa Centre forEconomic Transformation (acet),Norad's Oil for Development Programmeas well as the International SeniorLawyers Project (ISLP), the World Bank,German Technical Cooperation (GTZ),the Commonwealth Secretariat andNorad.

With the prospect of becoming an oilproducer in the medium term, the

inclusion of revenue streams frompetroleum production into reporting underSierra Leone EITI will undoubtedly becomean issue. At the moment discussionsregarding the extension of SLEITI arereduced.

There is less evidence of the creation ofsignificant employment opportunities in thesector, as rather than direct employment, thegrowth of the petroleum sector can provideopportunities in ancillary sectors such astransport, catering hotels etc.One of the most prominent concerns ofstakeholders is that Sierra Leone might fallvictim to the so-called resource curse,commonly associated with slow growth anda deterioration of institutional quality.Sierra Leone's institutional capacity isparticularly weak: Sierra Leone ranks verylow on governance indicators measuringgovernment effectiveness, corruption andpublic sector management, although someprogress has been made.

Even though the draft petroleum policycalls for the application of environmentalstandards in line with international practice,this lack of capacity endangers theirenforcement.

It can be noted however, that offshoreproduction of petroleum is less disruptive tocommunities than on-shore operation of theextractive industries. Low governmentcapacity and high levels of patronage andcorruption increase the likelihood of oilwealth not being put to development-oriented use. It will become a question ofcivic education as well as managingexpectation while at the same time, it is justa matter of time before the issue of oilrevenues will become politicised.Currently, the SLPP is limitingitself to low-profile attacks on theGovernment for its secrecy regardingnegotiations, a situation that is likely tochange in the run-up to the 2012 elections.Dialogue with the GoSL and donorassistance should be focused on thefollowing aspects:a) Strengthen stakeholders in government,as well as the Parliament and CSOs and alsoenable working-level officials to implementand enforce the policyb) Strengthen media organisations so as toadequately sensitise and educate a widerpublic on petroleum related issuesc) Encourage the GoSL to reinforce a moreparticipatory approachd) Support the efforts to enshrine fiscaltransparency through means of inclusioninto the SLEITI.e) Aid the GoSL to devise a private sectordevelopment strategy

opposition

Page 6

Oil Sector Report By AJMEAJME Magazine May 2012

At this National Conference onD e v e l o p m e n t a n dTransformation in Sierra

Leone, We, the member organizationsof the Natural Resource and EconomicJustice (NAREJ) Platform comprisingall the major CSOs engaged on SolidMinerals, Petroleum, Forestry,Fisheries, Land and Water resourcessectors acknowledge the initiative topay attention to the cardinal rolenatural resources have in thedevelopment and transformation of thenation.The Natural Resource and EconomicJustices Platform (NAREJ) wish toreaffirm here that most natural resourcesespecially minerals are God given, notrenewable, constitute public property. Allcitizens are therefore entitled to equitableenjoyment of the benefits that flow fromtheir exploitation.Let us recall that Africa as a Continent isalready advanced in putting mechanismsin place to optimize the exploitation ofnatural resources to underpin broad-basedsustainable growth and socio-economicdevelopment (AMV 2009). In February2009, at their Assembly, the AU Heads ofState and government requested"member states to improve their mineralresource policies, establish appropriateinstitutional, legal and regulatoryframeworks, and invest in human skills,research and development, and geologicaland geophysical data that are critical forefficient and effective management ofmineral resources".

We therefore want to see our naturalresources utilized for the creation ofwealth, sustainable development andproductivity for the benefit of all SierraLeoneans. Thus, Sierra Leone's naturalresource endowment (land, marine,minerals, oil, forest, water) should betransformed into lasting benefits for thesociety in a sustainable and equitablemanner, through the transparent,accountable, equitable and sustainablegovernance of these resources. For this tohappen we need to see the exploitation andmanagement of our natural resourcesthrough the lenses of the African Charteron Human and Peoples' Rights (ACHPR)with particular reference toArticle #21.KEY DEMANDS OF CIVIL SOCIETYIN THE MARCH FORWARDFor our natural resources to serve as driverof our development and transformation,

CIVIL SOCIETY PLATFORM ON NATURAL RESOURCES

AND ECONOMIC JUSTICE (NAREJ) -SIERRA LEONE

COMMUNIQUE ON NATURAL RESOURCE GOVERNANCE IN SIERRA LEONE - 30TH JANUARY 2012we demand the following;" Put a Moratorium on new mediumand large-scale corporate mining leasesand licenses until the policies, laws,regulations are reviewed/developed toalign with the African Mining Vision(AMV) and that reflect the demands andaspirations of the citizens." The Governance of naturalresources entails (1)recognition of publicownership of the resources; (2) communityinvolvement in and transparent award ofLicenses and Concessions; (3) Effectivemonitoring of the operations of licenseesand concessionaires; (4) transparentreporting of payments and revenues; (5)equitable and accountable distribution ofmineral revenues; (6) Sustainabledevelopment policies , etc" The urgent review of all corporatemining lease agreements that haveshortchanged the country and peoples bygoing against the relevant laws e.g. MMRAct 2009, Income TaxAct etc." Holding of separate nationalconference of Natural Resourcegovernance to come up with "naturalresource governance Charter" to inform alll aws , Po l i c i e s , r egu la t ions andmechanisms in the natural resource sector." Clear vision of the role of naturalresources in national development and keystrategies for using natural resources fortransforming and diversifying the nationaleconomy should be developed." That all policies, laws, regulationsand systems be aligned with the Africanmining vision, African Charter on humanand peoples' Right and other relevantinternational Human Rights standards." That a participatory, inclusive andtransparent negotiating process for allagreements for the sector be regularised asa matter of urgency." In line with the African MiningVision and the African Charter on Humanand Peoples' Rights and to ensure theintegrated management of naturalresources there is need to establish ands t r e n g t h e n a N a t u r a l R e s o u r c eCommission to regulate the activities ofthe natural resource industries." Set up a Transformation andDevelopment Fund - percentage of whichis to be slated as Future Generational Fund;another percentage as Social DevelopmentFund with emphasises on manpower andskills development for natural resourcesector.

" Restructure our educationalsystem to develop manpower and skillsfor the natural resource sector." That a national debate on landuse be launched for the adoption of acomprehensive land use." Develop a land/propertycadastre system for the development of aland tenure policy - outcomes of thenational debate." That a cross-border initiative belaunched for environmental managementand joint management of naturalresources." An outcome of the nationalconference on natural resources shouldinform the development of a nationalpolicy on water noting water as a naturalresource; usage of which for industrialpurposes should benefit the immediatepopulation and beyond. Effectiveoversight of the sector/industry by CivilSociety and the legislature over theoperations of corporate entitles thatengage in natural resource andexploitation in Sierra Leone." Forestry/environmental policiesshould focus on constant training so as toexploit emerging opportunities toreduced emission, deforestation,degradation plus conservation." The natural resource sectorcatalyses and contributes to the broad-based growth and development of SierraLeone through" Down-Stream linkages intobeneficiation and manufacturing" Up-Stream linkages into capitalgoods, consumables and servicesindustries" Side-Stream linkages intoinfrastructure (power, logistics,communications, water) and skills andtechnology development" M u t u a l l y b e n e f i c i a lpartnerships between the state, theprivate sector, civil society, localcommunities and other stakeholders.We implore the conference participantswho are themselves genuine SerraLeoneans consider these demandsseriously for our natural resources to bethe engine for the transformation ofSierra Leone.

For further information contact AminataKelly-Lamin - 076 651 755 (NMJD), SahrKendema - 076356691 (CGG), Hadji Bah -076717096 (CJM) and Joseph Rahall - 076

601979 (Green Scenery).

Page 23 AJME Magazine May 2012

By Fatima Sesay

The Chairman of the KoinaduguDistrict Council, Peter BayukuKonteh, has referred to the

mining activities taking place in thedistrict as reckless and disorganized, andcalled on government to demonstratepolitical will in changing the situation.

According to Chairman Bayuku, when hiscouncil took over from the previous one, theneed for increased revenue generation toundertake development projects wasdeemed crucial.

“Knowing that our district is endowed withfirst class mineral resources such as gold,we turned our attention to the miningsector”, he said, adding however on a sadnote that “We inherited a situation whereinthe mining sector was not bringing anybenefit to the people and the district becauseof lack of effective monitoring andregulation”.

The council, Chairman Bayuku went on,thought it fit to engage all the miningcompanies operating in the district by wayo f s i g n i n g a M e m o r a n d u m o fUnderstanding (MoU) with them. “We wentahead to draft the MoU but so far we havenot got the cooperation of the companiesand worse of it, neither the ministry ofmineral resources nor the government hasgiven us the backing needed to get thecompanies to comply”.

He said his council has tried in vain on threeseparate occasions to engage ministry ofmines officials on the issue, stressing that asa result the situation remains the same.

Among the issues raised in the draft MoUare:

1. That no mining company will beallowed to operate in the district withoutfirst meeting all obligations with theGovernment of Sierra Leone (Ministry ofMines)

2. That the allocation of mining landto a company should be approved first of allby the district /chiefdom council on behalfof the land owner (s)

3. That a mining company shouldonly operate in the district after presentingdetail information (documents) about itselfto the district council and the chiefdomcouncil in the area of operation

4. That companies with mechanizedmining equipment should pay a licence feeof Ten Million Leones (Le 10,000,000) perannum to the Koinadugu District Councilprior to the start of operations

Concerned Over Reckless Mining

5. That before starting operations,every company must indicate in writingand in agreement with the district andchiefdom councils the corporate socialresponsibilities they intend to assume

6. That within two months ofoperations, companies must present to thetwo councils a list of their employees aswell as the responsibility and salary/wagesof each staff

7. That every company operating inthe district shall within one month ofoperation make available for its workersmedical and watsan facilities.

8. That every company is obliged tocompensate the family of any deceasedemployee who dies on duty the sum of TenMillion Leones (Le 10,000,000) withinthree months of his/her death. The samecompensation shall be made to a workerwho is left permanently disabled on duty.

9. That any company that goesbeyond its allocated area of operation shallbe liable to serious legal action

10. That after excavation andexploitation of the land through mining,every company shall be obliged to refilltheir pits for agricultural development.

11. That if a company is leaving forwhatever reason, the land should bereturned to the land owner (s) and not toany other company or individual

“If all these points are adhered to, I am surethe people of Koinadugu District will startrealizing benefit from mining”, ChairmanBayuku noted, pointing however that“Council needs government blessing toenhance enforceability”.

This he said is important becauseaccording to him, some companies areoperating without proper documents andcarrying out their mining activities withcomplete disregard to environmentalprotection.

He referred to the ministry of mineralresources branch office in the district as“unserious”, and reiterated the call ongovernment to act now before it's too late.

Meanwhile, Abu Bakkarr Sillah, AssistantSenior Mines Monitoring Officer attachedat the Kabala office, said “It is responsiblemining that is taking place in the districtbecause we will not sit down and seecompanies doing what they want to do oroperating without the required legalauthority”. Mr. Abu Bakarr Sillahhowever stated that they are short staffedand lack the required capacity to conductrobust patrols across the entire district,

believed to be the largest in the country.AJME finds that Mr. Sillah and hiscolleagues are operating under extremelydifficult circumstances, thereby makingthem vulnerable to the manipulations ofmining companies. Mr. Sillah for instance,

had to ask for a room at the officeto be sleeping in, as no provisionwas made for him since he wastransferred there from Freetownsome two years ago. Themotorbike assigned to himcannot confront the terribleroads leading to certain miningcites, and therefore sometimeshave to rely on companyvehicles for movement from onepoint to the other.

Chairman Bayuku flipping through the pages of Mining Watch

Fatima Sesay in front of the Koinadugu District Council

Business-looking Mines office in Kabala

Page 7

Koinadugu District CouncilAJME Magazine May 2012

The Government's Poverty ReductionStrategy Paper II (Agenda for Change)identifies the minerals sector as one ofthe engines of growth for the economy,with the potential to generate revenues,c r e a t e e m p l o y m e n t , e x p a n dinfrastructure and reduce urbanization.In order to realize this potential, theGovernment has embarked on aprogramme to restructure the sector andelevate practices and programmes tointernational standards and bestpractices within the region. In thiscontext, and taking into account thelongstanding and widespread publicconcerns that the exploitation of thecountry's mineral resources was notproviding adequate benefits to thenation, the President set up a Task Forceto review the sector which includesamong others: review of the CoreMinerals Policy, Mines and MineralsAct and all industrial mining rights. ThisC o m m i t t e e c o m p r i s e d o frepresentatives from the Office of theChief of Staff; Strategy and Policy Unit;Ministry of Finance and EconomicDevelopment; Ministry of MineralResources; Environmental ProtectionAgency; National Revenue Authority;Law Officers' Department; andInternational advisors.

The primary objectives of the reviewwas to ensure that the country fullybenefits from it mineral resources andthe creation of an environment of mutualtrust between mining investors on theone hand, and the Government andpeople on the other, so that investors canoperate in a stable business environmentthat guarantees fair returns on theirinvestments. This, together with theestablishment of transparent legal, fiscaland policy regimes as well as efficientinstitutions will further enhance theoverall performance of the sector.Against this background, the review ofmineral rights provided an entry pointfor the analysis of the sector's functionsand for determining any changesrequired to meet the overall objectives ofthe Government. More specifically, thereview was expected to formulatesuitable recommendations for some ofthe existing mineral agreements,including whether they should berenegotiated, partially modified,accepted as is, or cancelled, dependingon the extent to which they areconsistent with the Government's visionand policies and on the extent to whichthe license holders comply with theletter and spirit of the relevant lawsgoverning the implementation of theagreements.

THE TURNING POINT: REVIEW OF INDUSTRIAL MINING RIGHTSWith support from the World Bank andthe UNDP, the Core Minerals Policy andthe Mines and Minerals Act have beenreviewed. Some Agreements (KoiduHoldings (Koidu Project) and LondonMining) have been successfullyreviewed and the new agreements willno t on ly increase revenue toGovernment but will significantlyreduce leakages. Negotiations are at anadvanced stage with Sierra Minerals andKoidu Holdings (Tongoma) Projectwhilst Sierra Rutile and Cluff Gold's areat the preliminary stage of the reviewprocess. Other agreements to berenegotiated includeAfrican Minerals.

1. Internal meetings to analyze thecompanies agreement and otherdocuments submitted with a view to:

a. assess the extent to which theagreement differs from the existinglaws; andb. Prepare and draft Government'sposition on the various provisions.2. Visit to the companies mine site withrelevant specialists to assess productionand related activities and the impact onthe environment.3. Develop term sheet for negotiationdrawing from international best practice.4. Exchange term sheet with company

and commence negotiations.

The renegotiation process includesamong others:

5. Draft Agreement and share withcompany for their comments.The constraints in the process includesamong others,

- Availability of internationalpartners/advisors;

- Timely support of MinistriesDepartments andAgencies (MDAs); and

- Capacity constraints, especially forfinancial analysis.The lesson learnt from this project is thatmining agreements should not benegotiated in isolation of Government'splans and programmes. The negotiatingteam has recommended that Governmentset up a mechanism for negotiations thatwould ensure representatives from allrelevant MDAs to take part in the initialpreparations before confronting the miningcompanies. This has been accepted and isnow applied systematically. Governmentshould secure the services of an expert indifferent mineral sectors that wouldprovide technical advice to the negotiatingteam.While Government continues to review thesector and Large-scale miningAgreements,we will appreciate your comments on theprocess explained above. Is the processexhaustive? What can be improved uponand how? How can implementation of theAgreements be monitored? How shouldGovernment manage revenue generatedfrom the mining sector?

Approximately $5.28 millionUSD is returned to theGovernment as revenue fromdiamond activity in SierraLeone. The principal revenuefrom diamonds comes in theform of license fees and exporttaxes. Total annual exports ofdiamonds reached $125 millionin 2006 and over $140 million in2007.The export levy on diamondsrepresents a key part ofgovernment's diamond-relatedrevenue. Government alsoreceives revenue from licenses(mining, dealer and exportlicense fees).There are three types of peopleto whom dealer and exportlicenses can be issued (mininglicenses are only issues to SierraLeoneans):· Citizens· ECOWAS citizens· Foreign nationals

GOVERNMENT REVENUE FROM DIAMOND ACTIVITYProceeds from Diamond Mining in Sierra Leone (Estimates 2006)

Revenue Source Breakdown Fees Total Revenue

Artisanal Mining (approx. 2,000 licenses)

Licensing Le 200,000 $135,600

Monitoring Le 100,000 $ 67,800

Rehabilitation Le 200,000 $135,600

Surface Rent Le 100,000 $ 67,800

SUB TOTAL $406,800

Diamond Exports Duty (3% of $125

million)

GDO 0.75% $930,000

Evaluators 0.40% $496,000

Treasury 0.70% $868,000

DACDF 0.75% $930,000

Monitoring 0.25% $310,000

Rehabilitation 0.05% $ 62,000

Public information 0.10% $124,000

SUB TOTAL $3,720,000

Exporters

Year License (11) $ 40,000 $440,000

Half Year License (4) $ 25,000 $100,000

Export Agents (44) $ 5,000 $220,000

SUB TOTAL $760,000

Dealers

Citizen (49) $ 2,000 $ 98,000

ECOWAS (15) $ 2,500 $ 30,000

Non citizen (21) $ 5,000 $105,000

Monitoring (82) $ 400 $ 32,800

Rehabilitation Le 500,000 $ 13,898

Dealer agents (89) $ 1,000 – $ 1,500 $111,250

SUB TOTAL $390,948

TOTAL PROCEEDS$5,277,000

Page 22 AJME Magazine May 2012

Page 8

Reflection Africa resource curse syndromeWhat is responsible?

Author at a mine site in Ghana

By Mohamed Konneh

Th e l a c k o f e f f e c t i v egovernance is believed to bethe main reason why the

natural resources of most Africancountries have not benefitted thenationals, thereby turning theresources into a curse, rather than ablessing.In a 2010 Revenue Watch Institutepublication, it came out clearly that badgovernance is one of the most seriouschallenges facing the extractiveindustry.“But to promote good governance ofthose resources, we think that citizensand other civil society groups have akey responsibility, including membersof parliament, who should ensure thatgood laws are made; equitable contractsare made between companies,governments and communities for thebenefit of all. They should also be ableto demand accountability fromgovernment and companies,” saidEmmanuel Kuyole, the RegionalDirector of Revenue Watch at the 2011Regional Extractive Hub SummerSchool on Governance of Oil and Gas,held inAccra, Ghana.Revenue Watch Institute was amongstthe sponsors of the summer schoolwhich drew participants from all walksof life including law makers, civilsociety activists, government officials,lawyers, media practitioners andexperts in the extractive industry.Mostly referred to as a resource-richcontinent, it has been revealed that 40per cent of Africa's population iswithout access to safe drinking waterand 33 per cent without access toadequate health care. 60 per cent of theglobal HIV/AIDS prevalence is inAfrica.Africa is also the most dependentcontinent in the world. Of nearly twotrillion dollars to developing countriesin the last fifty years, Africa hasreceived about a trillion dollars of thesum total.Norway and Nigeria for example, wereendowed with extensive forests in pre-historic times. But the fractions of theseforests that remain intact are fardifferent. In Norway, over 90 per cent ofthe country's forest cover remainsintact, while that of Nigeria is about 11per cent intact and the rest has gone.The situation faced by Nigeria will soonhunt our country sierra Leone, due tothe manner in which lands are beinggiven away for so-called development

purposes under the guise ofcreating an economic zone.This is worrying because thenegative effects of thesituation have alreadystarted biting.A typical example is thecontroversial Pujehun landdeal, involving at least twochiefdoms in the district,including Malen Chiefdom,that have leased out hectaresof their lands to industrial oilpalm plantation companies.The arrangements leading tothe leases have been deemed

to be heavily manipulated, therebyprovoking backlashes from the affectedproperty and land owners who were neitherproperly sensitized before including theirproperties in the deal, nor paidcompensations that are in commensurateterms.Recently, 40 affected persons weredetained for merely staging a peacefulprotest action against what they believe isthe grabbing of their lands, and a Memberof Parliament, Honourable Shaka Sama,associating with them, subjected to policequestioning on accusations of inciting theprotest. More protest actions are on thepipeline, and who knows, they might take abloody turn one day.Africa’s natural resources include diamond,gold, iron ore, bauxite, rutile, forest, landand so on. Sierra Leone as a country isendowed with plenty of these resources, butthe question is, 'How much is the countrybenefitting from them'?In a recent report by Ibis, a non-governmental organization working in thecountry, it came out clearly that revenuesaccrued from the mining sector account formerely 1.4 per cent to the country's grossdomestic product.This is pittance when one considers howmuch so-called investors are taking away,and this has left many observers with theview that the country should rather stop thebusiness of mining and concentrate on othersectors that would bring benefit to thepeople.Mining is destroying the land, and insteadof making the lives of the people better, it isthe direct reverse. Mining communities arethe poorest; typical examples are Kono inthe east and Sierra Rutile in the south.Transparency is lost as the operations ofmining companies are often embedded insecrecy.

Major mining companies have theirbusinesses registered in tax havens, with aview to dodging tax payment and therebymaking corporate tax payment a big jokeand also creating a huge opening forrevenue loss.It is estimated that each year, Africancountries lose 5.2 billion United StatesDollars in tax avoidance profits transferredfrom Europe to Ireland, Netherlands andonward to Bermuda.This chain is somehow very complicating,and this is exactly what these multi-lateralcompanies are doing in connivance withcertain African leaders and this is done tofurther widen the gap between the rich andpoor.Tax havens provide the structures thatfacilitate capital flight and multinationalcompanies always make use of the schemethat is programmed by corrupt elitesoperating within the system.Tax havens undermine transparency andinternational cooperation. Tax havens arecharacterised by special legislations toprovide protection for foreign companiesand foreign accounts holders against taxpayment.There is no transparency, no reporting, nodisclosure of ownership, no clearly definedaccounts, and sometimes one wonders whygovernments in Africa would want tocooperate with companies takingadvantage of undue protection.As a result of bad policies pushed forwardby international financial institutions suchas the World Bank and IMF, Africangovernments believe that they are underobligation to give incentive packages toforeign investors, in addition to giving ablind eye to their tax avoidance tactics.Civil society needs to hold governments

Continued page 25

AJME Magazine May 2012

The Ministry of Finance and EconomicDevelopment (MoFED) and theMinistry of Mines and MineralResources (MMR) wish to inform allmining and exploration companies thatthe Government of Sierra Leone hascommitted itself to promotingtransparency and accountability in themining sector. In essence, it isGovernment's position that the publicshould know what mining andexploration companies pay toGovernment and what Governmentreceives from mining and explorationcompanies.

However, it has come to the notice ofMoFED and MMR that a number ofmining and exploration companieshave not only failed to make good theirannual and renewal licence paymentsbut have also failed to submitoperational reports in accordance withthe Mines and Minerals Act of 2009,sections 152, 65, 78, 102 and 115. Toascertain the authenticity of theseclaims, therefore, letters have beenaddressed to these companies and theywill be followed by site visits.

In this connection, all mining andexploration companies are herebyrequested to furnish the Office of theDirector of Mines (Youyi building)immediately with all of the following:1. Evidence that you have madethese payments or, in the absence ofpayment, a bank draft to bring thelicence up to date.2. Outs tanding operat ionalreports in respect of the mining licence.3. Updated address, e-mail andtelephone contact information.

Mining and exploration companies arewarned that failure to provide suchevidence will leave the Ministry withno alternative but to initiate suspensionprocedures as per sections 53 and 172of the Mines and Minerals Act of 2009,respectively.

For further information contact theOffice of the Director of Mines (076-697-662) or the Mining CadastreOffice (076-330-694).

PRESS RELEASE

Ministry of Finance andEconomic DevelopmentTreasury BuildingGeorge Street, Freetown

Ministry of Mines andMineral Resources5th Floor, Youyi BuildingBrookfields, FreetownSIERRA LEONE GOVERNMENT

Page 21

According to him, mining companies inthe past created the platform for peopleto treat the current generation of miningcompanies with suspicion. “We are in asituation wherein we have tosubstantiate everything we do”, hestressed.For his part, Abu Brima of the NetworkM o v e m e n t f o r J u s t i c e a n dDevelopment (NMJD) representing thecivil society family, decried the slowpace of the EITI implementation andblamed it on lack of political will.“Government needs to do more”, hecalled.

Also speaking at the ceremony was theWorld Bank country representative whomaintained that the country will derivemuch more benefit from its huge mineralwealth if transparency issues are takenseriously.Regrettably, Sierra Leone could not meetthe minimum standards of the core EITIrequirement which directs that informationon payments and revenues supplied by bothcompanies and government entities are 'thesubject of a credible and independent audit'.Meanwhile, the EITI process has comeunder criticism, given that it lays allemphasis on tracking payments andrevenues, but not how the revenuesreceived are expended.

Status of EITI implementation in Sierra LeoneFrom Page 16

Who we are? Where are we headed?Who we are? Where are we headed?AJME:

The Association of Journalists onMining and Extractives (AJME)came into existence in 2007 and

has as its main objective 'using the mediaas an effective tool for sensitizing thepublic on the mining and extractiveindustry with a view of effectingrequired changes in the industry for thebenefit of all Sierra Leoneans and moreespecially the host communities affectedby the activities of the actors in theindustry.AJME, comprising of 45 print andelectronic media practitioners fromacross the country, works against thebackdrop of the paradox of plenty inSierra Leone, that is, our plentifulmineral resources have been a curse andnot a blessing to the nation.For all our diamonds, iron ore, rutile,bauxite and other valuable resources, oris it partly because of them, Sierra Leoneremain at the very bottom of the UN listof the world's least developed nations.Reversing this trend, turning ourresources from a curse into a blessing,was the reason why journalists deemed itfit to organize themselves into anassociation, to bolster the advocacymachinery of the Campaign for JustMining and other partners including theNetwork Movement for Justice andDevelopment (NMJD), around issuesbordering on the mining and extractivesector.

"Undertake research on issues affectingthe mining and extractive industry" Regularly publish the researchfindings in the media for theconsumption of the wider public"Advocate on behalf of communities,

Our objectives are to:

employees and groups affected by thea c t i v i t i e s o f m i n i n g a n dextractive companies"Sensitize all stakeholders of the need forjust and effective use of extractive resources" Create opportunities for others inthe media to provide i n f o r m e dopinions and news reports on the miningsector" Network with other civil societygroups and organizations as well asgovernment agencies and departments toensure adherence to the national andinternational standards by actors in themining and extractive sector

"Amore transparent mining sector"More human right awareness andprotection for persons living in mining areasand environmental concerns"An invaluable body of mining-relateddocuments available to the public and allinterested parties"A cadre of journalists better informed andconversant on mining issuesThe enthusiasm of the AJME is limited onlyby the need for funding. Thus far, AJME'sonly source of funding has been NMJD, forwhich we are very grateful.But we are still seeking financial support toenable us set up our own offices, make usmobile so we can get to the mining areas,development our communication capacityand a website, and continue to increase ourown expertise and knowledge throughtraining. Meanwhile, the second phase of thetraining ended on Wednesday 25th April2012 at the Hill Valley Hotel in Freetown.Six Liberian journalists joined their SierraLeonean counterparts to benefit from thetraining that was coordinated by ChristopherSpringate of DeutchAwella.

AJME aims to create:

AJME Magazine May 2012

Page 9

By Theophilus S. Gbenda & Fatima Sesay

Located in the Diang Chiefdom, Koinadugu District inthe north of the country, the Lake Sonfon provides anopportunity for Sierra Leone to boast about having

one of the biggest and finest wetlands in the entire Africanregion.The lake stretches 42 square miles and is home to a host of animalsincluding endemic reptiles and birds, and is said to be serving as abiological corridor to accommodate animals and reptiles escapingfrom the Bumbuna hydroelectric fall, with which it has a directconnection.Birds from Europe are believed to be migrating to find settlementaround the lake and forest officers have confirmed the presence ofelephants, lions, tigers, buffalos, hippopotamus and other notableanimals in the area. There are also said to be thousands ofcrocodiles, alligators and such others in the lake that is on record asbeing the hallmark of a natural formation that could hardly befound anywhere else in the world.According to Alfred Gibrilla Momoh, Forest Officer ofKoinadugu District, the lake was proposed for conservation in themid 1970s, but was never gazetted.Rich in pure gold, the lake soon attracted mining investors and ahigh population, and till date, massive mining is taking placearound the lake, with minimal benefit to the district.About 30 camps have been opened around the perimeter of thelake, with almost everybody, men, women and children,depending on gold mining as their only means of survival.Even traditional cattle rearers and farmers have abandoned theirtrades for the gold mine.Anumber of licence have been issued to rights holders, making themining activities going on around the lake which by all means issupposed to be protected, legal.One such rights holder is the Lion Mining Company Limited(LMCL), which according to Abu Bakarr Sillah, the AssistantSenior Mines Monitoring Officer in the district, has a concessioncovering 42 square miles; the largest. The LMCL undertakesindustrial mining, it should be noted.Another prominent rights holder is the Chiefdom Speaker of thevery Diang Chiefdom, Mohamed Jawara. Chief Jawara'sconcession which covers an area called Segbeya, has become ahub for artisanal gold miners from most parts of the country.On a daily basis, the artisanal miners sell their finds to a specialpurchasing committee set up by Chief Mohamed Jawara, at a fixedrate of Le 6,000 (Six Thousand Leones) for 20 percentage of golddust. It is obvious that the miners are being tricked or underpaid.Imagine the committee buying various percentages from hundredsof miners on a daily basis, without having to negotiate?While the licence holder is living in affluence, the miners andpopulations in the mining camps around the lake live like dogs.They have no access to pure drinking water, no toilets, no hospital,no school, no market, no balanced diet, no social amenities and ofcourse nothing else to look up to. Worse of it is that the people livein makeshift structures that could hardly stand rain and cold. Tosay that people living under such conditions are prone to a varietyof ailments is an understatement.The Chairman of the Koinadugu District Council, Peter BayukuKonteh, referred to the mining activities occurring around LakeSonfon as "Wreckless", noting that, "Mining is destroying thefinest natural lake we have in the country".

Sierra Leone’s Biggest WetlandNeglected …As massive mining

By Mohamed KonnehAs part of conscious efforts to promote awareness andtransparency in the mining and extractive industry, the GermanInternational Cooperation (GIZ), has opened a well containedresource centre at the library facility of the Campaign for GoodGovernance (CGG) at Tengbeh Town, Freetown.The main aim of the establishment of the resource centre is toincrease opportunities for Sierra Leoneans and visitors alike toaccess credible information and knowledge on issues relating toresource governance.In Sierra Leone, the number of stakeholders with access,knowledge and expertise on natural resources is limited.Therefore, the basis of informed opinions on the part of decisionmakers for checks and balances is low.Adding to this is that due to low internet connectivity and almostnon-existent book market, stakeholders can hardly access up-to-date scientifically and academically-based information.It is in view of these factors that GIZ deemed it fit to support theidea of establishing the resource centre, in partnership withvarious civil society organizations such as the NetworkMovement for Justice and Development (NMJD), Campaign forGood Governance (CGG), Campaign for Just Mining (CJM), theNational Advocacy Coalition of the Extractives (NACE), theAssociation of Journalists on Mining and Extractives (AJME),ChristianAid andActionAid.The provision of specialized library materials on resourcegovernance for use by visitors, students, researchers andjournalists with the aim of educating a measurable number ofstakeholders in the field of natural resources management, is ofutmost importance.The resource centre will host a wide range of over 300publications related to mining and resource governance issues inSierra Leone and Africa, including laws, regulations, scientificpublications, documentations by research institutions and non-governmental organizations, documents of German DevelopmentCooperation, the World Bank Group and international partnersaround the key words such as mining in Sierra Leone and WestAfrica, resource curse, corporate social responsibility and theExtractive Industry Transparency Initiative (EITI).The idea of establishing the resource centre is not only to serve asa point of reference for interested citizens and visitors alike, butalso as a venue for debates and public lectures. It is in furtheranceof this objective that GIZ, in partnership with the organizationsabove, in mid April 2012, established another resource centre atthe Fourah Bay College (FBC) campus.GIZ and its partners are doing all of these against the backdropthat a well-informed citizenry at all levels of natural resourcegovernance will contribute positively towards the fair distributionof the proceeds from the exploitation of natural resources, therebyenhancing sustainable growth and stability in the country andbeyond.

GIZ opens resource centre

to promote knowledge on

natural resources

A busy resource centre indeed

Continued page 12

AJME Magazine May 2012

The Issue

Description of the problem

There is enormous pressure to mineSierra Leone's natural resources. Theactivities of Sierra Leone's two large-scale mining companies result in landdegradation through loss of vegetativecover, soil erosion, and contaminationof water sources. Small-scale miningof diamonds and gold raises similarissues on a different scale.

A r t i s a n a l m i n i n g r e s u l t s i ndeforestation and land degradation;and stagnant water collects inexcavated areas which are abandonedby the miners, providing breedingground for mosquitoes.

Frequently, there are clashes betweenthe farming communities and themobile artisanal miners who arecreating hazardous health conditionsfor the resident farmers. To examinethis issue more closely, we will focuson small-scale mining and itsenvironmental impact on thecommunities affected by miningactivities.

Sierra Leone is endowed withabundant rainfall, substantial mineralresources, some fertile soils, andextensive marine fisheries. Thisdevelopment has not been effectivelymanaged, and Sierra Leone isclassified as one of the poorest andleast developed countries in the world.C o n t i n u e d p o o r e c o n o m i cperformance is largely due to the war inSierra Leone.

Sierra Leone imports 70% of itsrequirements and suffers from extremeshortages of foreign currency. The warconsumed as much as 75% of thegovernment's financial and materialresources.

Sierra Leone has a population of aboutsix million, growing at a rate of about2.6 percent per annum. Over two-thirdsof the population lives in absolutepoverty. Rural life, with the exceptionof the diamond and gold mining areas,is generally at a subsistence level. Lifeexpectancy is very low, estimated at 42years; and infant mortality is amongthe highest in the world, despite therecent introduction of the free healthcare policy for pregnant women,lactating mothers and children below

Sierra Leone mining and EnvironmentPage 20

age five.Primary school enrollment is among thelowest inAfrica.

Officially, the mining sector contributesminimally to the country's exportearnings. It has lost some of its apparentstrength, as its share of GDP has droppedfrom 16 percent in the early 1970s to lessthan 10 percent.

This decline, however, reflectssignificant increases in unaccountedtrade, as well as the depletion of deposits.The failure to combat illicit mining andwidespread smuggling of gold anddiamonds has significantly reducedpublic revenues.

Prior to 1956, small-scale diamondmining was illegal. With the introductionof theAlluvial Diamond Mining Scheme,small-scale production of diamonds waslicensed. Illicit production has howeverpersisted, despite efforts to enforce thelaw.The method of production for small-scalemining ranges from very basic artisanalmethods of digging earth and washingand sifting to the use of more capitalintensive equipment, including waterpumps and excavators. The mostcommon method is the highly labourintensive process where large groups ofpeople dig the earth and wash and sift theore for diamonds.

The environmental impact of small-scalediamond mining activities is severe,devastating the land by clearing anddigging up vegetated areas. After an areais mined the land is left exposed anddegraded, unsuitable for farming or anyother activity. When the mining is carriedout on hilly areas and slopes, severeerosion takes place and flooding canresult.

In certain locations, miners not onlyremove vegetation and economicallyvaluable trees but their activities alsodivert surface drainage. Siltation in riversystems is a common problem to be facedby communities living downstream.Water collects and stagnates in the dug-out areas contributing to health hazards,potentially increasing the incidence ofmalaria and other water borne diseases.Mining activities expose communities toa wide range of diseases. Heavy rains

Trade and the Environment

cause dug-out areas to be transformed tostagnant ponds which are breedinggrounds for mosquitoes, exacerbating theproblem of Malaria.

Communities interacting with watersources contaminated by mine wastes areexposed to diarrheal diseases. Miningactivities cause heavy siltation in riverbeds and creeks, which reduces coastalcoral and fish populations that feed andbreed in it. Toxic wastes in the watersources contaminate marine life makingthem unfit for human consumption.

"A study carried out in southwesternSierra Leone (Gbakima) indicates theprevalence of schistosomiasis and otherparasitic diseases. Urine and fetalsamples from mine workers and theirdependents from selected residentialdiamond mine camps in some miningcommuni t ies revealed cases ofwidespread infection. The studyconcluded that abandoned diamondworkings provide a habitat suitable forBiomphalaria pfeiffer, the snailvector for the disease, S. Mansoni.

Biomphalaria pfeiffer has been found inlarge numbers in most streams and pondsin sou thwes te rn S ie r ra Leone ,particularly in the Tongo area and thenumber ofincidences of S. Mansoni in the TongoField hospital are reported to haveincreased dramatically. The study furtherconcludes that diamond mining on a largescale and swamp rice farming caneventually contribute to a prevalence ofschistosomiases, a major parasiticdisease, which can be fatal to youngchildren."

Unfortunately there is little other detailsavailable on the direct health hazardsimposed on the local communities. Inorder to provide a better understanding ofthe impact of the current miningactivities, environmental impactassessments need to be undertaken forlarge-and small-scale mining activities toevaluate the relative environmental costs,including off-site costs like downstreamsiltation.

In the case of small-scale miningactivities, an assessment is needed of the

CONTINUED PAGE 25

AJME Magazine May 2012

Page 10

By Anders Reimers LarsenIBIS - Sierra Leone

The industry of extractives is withoutany doubt one of the most importantsectors of global economy. It providesthe raw materials used in electronics,construction, combustion engines, aswell as it feeds into the personalconsumer market with gold and gemstones. It is the basis for a number ofindustries and for that reason; theextractive industry is by defaultpowerful and essential to globaleconomy.IBIS was formed as a response tosupport the power struggles againstapartheid across Southern Africa, andwe are still committed to address powerissues as they become constructed inthese present times. What do we meanby that? It means that we seek toanalyse the structural causes forpoverty, and we try our best to changethese. Why take this battle? Otherwise,we will still be here a hundred yearsfrom now. We don't want ourgrandchildren to be fighting the samebattles as we did.How is fighting structural causes forpoverty related to the extractiveindustries?The global situation is very much sothat mining companies and oil drillingcompanies have assumed a critical rolein how this world goes round andround. Not only on the stockexchanges, in western economies, butperhaps even more crucially inresource rich countries. The resourcecurse as has been widely accepted as afact is the evidence of the proportionbetween high poverty and the presenceof rich natural resources, and hencealso the presence of extractiveindustries. But why is it a problem that,for instance, a mining company wieldsa lot of power when they invest so muchmoney?Investments into a poor country havetheir economical reasoning and even inIBIS' analysis, not all the consequencesof the mining companies operating inSierra Leone are bad. Not at all.However, we must understand thenature of a company and state it clearlyover and over in order to remindourselves. A private company has oneoverruling objective, which is to make

People's right to demand returns fromextraction of non-renewable resources

profits. It doesn't matter if it is makingsoap from palm oil to sell at the localmarket or if it is an iron ore miningcompany selling to the global market.Everything comes down to the bottomline. Is it profitable? Why do we need toremind ourselves this?Because we must not mistake a companyfor a development agency. We shouldnever expect a company automaticallywill deliver development in the shape ofpublic services or welfare goods. In aneconomic perspective, this would onlymake sense for a company if they couldprofit on it. But this doesn't mean that amining company in Sierra Leone is not adriver of change like the rest of us wish toacclaim that we are also. They are. Thereare however two follow-ups to that. Whatchange do they bring? And how is thechange driven? These are the two crucialquestions to ask before engaging in thesector of extractive industries: The resultand the means.Who are the owners of the naturalresources?For IBIS the result needs to be equalprospering, equal distribution of benefitsand the means a responsible, accountableand transparent business conduct. Wepar tner wi th c iv i l soc ie ty andcommunities as our drivers of change?Why so? Because the power structure isagain key here. It is not the companieswho own the land, the minerals, the oil,the forests, the rocks, anything of that.The companies do not own these. Theyhave bought the right to utilise these rawmaterials, but they do not own them.Hence, it is not their choice how to exploitand extract. It is not their choice what theyshould pay in return. If we leave it to acompany to decide the terms of taxes, landlease fees, royalties, communitydevelopment, etc. we are messing with thebasis of a company: They will alwayschoose the cheapest option vis a vis theirprimary objective: profit. If the owners ofthe natural resources want something inreturn, they need to set the terms. Period.It is the citizens' knowledge about whatwould be good for their communities thatshould be a point of departure for suchterms. It should be the government'sresponsibility for development and publicservices that should be the point ofdeparture for such terms.Acompany who wishes to utilise

someone else's resources need to go by theowners' rules.And the owners are the stateand the citizens. The state and thegovernment has the discretion to negotiatewith the companies, but the citizens of thecountry elect this government. On a recentconference on parliamentarians' role inthis sector, it was stated by one UgandanMP: “I was elected by the citizens, so howcould I legislate without their influence”.In Sierra Leone, who has a democraticallyelected government, the natural resourcesbelong to the people, and if the means ofwhich these are extracted is not fitting,both in terms of their environmental,social, and financial consequences, thepeople will have to move towardschanging those means. This meanspractically to problematize the legislation,the contracts, and the generation andusage of revenue.To sum up this far, it means that IBIS seeks- to empower people and theirorganisations to influence decision-making on extraction of natural resources.- t o e s t a b l i s h h u m a n ,environmental, social, cultural andeconomic rights and sustainability as aguiding principle for any extractiveactivity, as well as IBIS seeks;- to establish as a guiding principlethat revenues from extractive industriesmust be transparently managed with theright to information; revenues must bemaintained in the country throughadequate taxes and invested indevelopment for poor people.The above constitutes IBIS strategyobjectives on extractive industries. Wetarget these issues through being presenton a global, national and local level. Thisvertical view is important if we wish to seethe change taking place and to worklegitimately on all levels.

Are we against the mining companies, onemight think? No. But we want to becritical towards what is being promoted asthe good sides of mining and extractiveindustries.Are they not providing jobs andpaying better salaries? Are dependentfamily members of employees not alsobenefitting? Yes – that is the good side.And that is enough for a company. But is

Is 1.4% of GDP in mining revenuesenough in return for a non-renewableresource?

AJME Magazine May 2012

Continued page 27

The Deutsche Wella Akademiewith support from theG e r m a n I n t e r n a t i o n a l

Cooperation (GIZ) has trained 12print and electronic journalists fromLiberia and Sierra Leone on'Reporting on Extractive Industries'.The training ran from 19th - 30thSeptember at the Saint AndrewsConvent in Monrovia, Liberia, with KateHairsine (Journalism/Radio expert),R a l p h H o t t e ( I n v e s t i g a t i v eJournalism/TV expert) and RainerGilhofer (Technical, Radio and TVexpert), as trainers.The training aimed at giving Liberianand Sierra Leonean journalists theinstruments they need to provide theiraudiences with balanced, objective andimpartial information on extractiveindustries, with a view to promotingpublic debate on resources and makingtheir use more transparent.The training focused on providingbackground information on Liberia andSierra Leone's extractive industries,understanding the ethical and economicbenefits of transparency, investigativejournalism, research and story-tellingtechniques.The training came at a time when bothcountries are deemed to be at thecrossroads insofar as the exploitation oftheir vast natural resources areconcerned, and more so when oil hascome into the picture.During the training workshop,participants unanimously agreed toestablish a Mano River Union ofJournalists on Natural Resources, so asto be well positioned to tackle issuesbordering on the mining and extractive

Sierra Leonean And Liberian Journalists

Trained On Natural Resources Management

sector in the region which includesneighbouring Guinea and Ivory Coast.The end of the all-important training wasfollowed by a grand certification ceremonyattended by the German Ambassador toLiberia, Dr. Bodo Schaff, who in his speechcongratulated participants for successfullyundertaking the two-week intensive courseand assuring of continued Germancollaboration in ensuring beneficiationfrom the mining and extractives industriesin the region.Ambassador Schaff said mineral resourcescan be a blessing if used wisely, andlikewise could be a curse and a source ofconflicts if used otherwise. He welcomedthe initiative to establish a network amongjournalists in the region, stating that"Journalists have a great role to play to turnthe situation around for the good of all".Earlier in his speech, head of the SierraLeonean delegation Theophilus S. Gbenda

who happens to be the Chairman of theAssociation of Journalists on Mining andExtractives (AJME), thanked the Germantax payers and facilitators of the training forwhat he referred to as a timely intervention,adding that the training has furtherbroadened their horizons to dig deeper intothe sector and expose the odds that areinhibiting the country's chances of makingthe most from its huge mineral wealth.Mr. Gbenda furthered that "Our governmentwill no longer be left alone when it comes totaking the lead in bringing about the desiredchanges in the sector which remains apotential time bomb for the peace and quietthe country is currently enjoying".On his part, leader of the Liberiandelegation, Augustine Myers of Star Radioand TV, said "For us Liberian journalists, weconsider the training as an eye openerbecause all our reports have been focused onpolitical, and not development issues".Mr. Myers said one reason why Liberianjournalists have not been pursuing miningrelated stories is due to the lack of supportand training.He went on to state that a good number ofmining activities are taking place in parts ofthe country, with no single journalistbothering to find out what is going on andwhat the country and its people arebenefiting as a result.He expressed optimism that the formationof a network among colleagues in the regionwill be a useful tool in creating more interestin the sector and as a result usher in a changefor the better.Meanwhile, the second phase of the trainingended Wednesday 25th April 2012 at theHill Valley Hotel in Freetown, with sixLiberian journalists in attendance.

Page 19 AJME MagazineMay 2012

Liberian and Sierra Leonean journalistsdisplaying their certificates

Sierra Leonean and Liberian journalists with LiberianSenator in the middle

By Mohamed Massaquoi

The forest co-managementp ro g r a m i s a i m e d a tinstituting and maintaining a

positive relationship between theresources in the Gola Forest reserveand the surrounding communities. Itinvolves a strategic planning thatwould appropriately and sustainablycombine and use available resources inthe reserve and allied customary lawsto generate and optimize benefits forthe communities, while at the sametime maintaining the forest 'secosystem.Forest reserves are portions of statelands where commercial harvesting ofwood products, mining and otherdomestic activities are prohibited inorder to capture elements ofbiodiversity that could be missing fromharvested sites. Small (patch) reserveswill conserve sensitive, localizedresources such as steep slopes, fragilesoils, and habitat for certain rarespecies that benefit from intact forestcanopies. Large reserves will representthe diversity of the forest landscapesremaining in the country.The core objective of forest co-management is to improve andmaintain boundary communities'livelihoods. The program has itsspecific objectives that it aims toachieve. It implements activitieswithin a specified impact area andpartners with communities in order toachieve the set objectives.Gola Forest is part of the Upper GuineaForest, of which less than 30 per cent ofthe forest now remains intact. It wasonce a huge expanse of lowlandrainforest covering Sierra Leone,south-east Guinea and Liberia.O f t e n t i m e s , s u r r o u n d i n gcommunities, especially those thatoppose conservation for farming,mining and other domestic activities inthe reservation, have been criticalabout the effective utilization and themanagement of the resources of theGola Forest.The co-management of the God-givenresources of the Gola Forest has nowb e e n c o n s i d e r e d b y m a n yconservationists as the best wayforward to involve communities in thegovernance and utilization of thereserve.The process will among other thingssupport the regenerat ion andsustainable management of forest

Page 11

A Standard Practice For ConservationGola Forest Co-management:resources in customary land, promotecommuni ty ins t i tu t ional iza t ion ,governance and responsibility. Theprocess will also include the provision ofcapacity building and skills developmentservices for local communities so as toenhance the promotion and developmentof natural resource based enterpriseswhich will in turn facilitate conflictmanagement in the respec t ivecommunities.In Tunkia Chiefdom, Kenema District, agood number of forest edge communitieshave expressed frustration over theutilization of the forest, saying they areyet to see fulfilled the promises made tothem in return for their cooperation toprotect the forest. The Gola Forestprogram however claims to besupporting education, social andinfrastructural development projects inthe edge communities.Recently, the Paramount Chief of Tunkiachiefdom, PC Amara Goway Sama andother sub chiefs, preferred mining toconservation. In April 2011, SableMining Company announced that it hasacquired an 80% interest in Red RockMining Company, which claims to hold afifty-year mining lease agreement atBagla Hills, an area located within theGola Forest reserve.Bagla Hills is said to have a rich depositof iron ore and other minerals, accordingto an exploration conducted byBethlehem Steel Mining Company,between 1973 and 1975. This has madethe site highly attractive to investors. Onesuch investor is quoted to have casuallyremarked while addressing communitystakeholders in the area that "Yourgovernment has to choose betweendevelopment and the preservation of amere forest".The proposed Bagla Hills Iron Oreproject in the Gola Forest has faced stiffresistance from the people of TunkiaChiefdom, as some land owners haveopenly challenged and condemned thesaid lease agreement, saying they werenot involved in the arrangement.The situation seems to be getting worsefor the investors as according to agovernment press statement issued fewmonths ago, no mining activities shouldtake place in the reserve.The huge rainforest is under strictgovernment protection, and has beenhailed as one of the best examples offorest conservation to cut down carbonemissions in theAfrican Sub-Region.

His Excellency President Ernest BaiKoroma while launching the TransBoundary Programme between SierraLeone and neighbouring Liberia,declared the 75,000 hectares stretch forestas the country's national park, therebyprotecting more than 50 mammal speciesincluding leopards, chimps and forestelephants, 2,000 different plants and 274species of birds of which 14 are said to beclose to extinction.The area, situated close to the Liberianborder, will become the flagship site in anew national park network with localcommunities paid annually to replaceroyalties linked to logging and diamondmining in the forest. Scientists will beencouraged to study the wildlife of thearea which is expected to become a hubfor eco-tourism.The Gola Forest Project Leader, GuyMarris, in an interview said they arecurrently embarking on two managementapproaches that are geared towardsinvolving community stakeholders in theprotection of the reserve and to help themknow their 'usual rights and obligations'through a forest co-management system,which he said will minimize themisconceptions amongst communitypeople about immediate benefits or amining option.''We are planning to set up village co-

management committees, because it isour intension to allocate funds for analternative livelihood project for thepeople", he said.According to him, a widerange of consultation with forest edgecommunities to develop the said projecthas been held in the affec tedcommunities.Protected Area Manager of the GolaForest, Alusine Fofanah, emphasized thatthe inputs of stakeholders for effectiveforest management is key to thesuccessful conservation of the forest.He said even though there are limited'usual rights' of the proclaimed nationalpark by people, yet the program stronglyrecognizes the role of the traditionalpeople in the management of the reserve.The Promoting Agriculture, Governanceand Environment (PAGE) which isoperating in Kailahun, Kono, Kenemaand Koinadugu Districts, is implementinga four-year project worth $13.2 million,funded by USAID. The aim of the projectis to enhance the economic developmentof four of the count ry ' s mostunderserviced districts. The project isworking to increase

AJME Magazine May 2012

Continued page 13

Page 18

By Mohamed Konneh

It is three years down the line organizing training ongovernance of oil, gas and mining revenues in Ghana'scapital, Accra, at the Ghana Institute of Management

and PublicAdministration (GIMPA).The latest training started on Monday 25th July and ran up to 6thAugust, 2011, drawing participants from nine African countriesincluding Ghana, Sierra Leone, Tanzania, Uganda, Mozambique,Zambia, Zimbabwe, Nigeria, and Liberia.Sponsored by GIZ and Revenue Watch Institute, the RegionalExtractive Industries Knowledge Hub Summer School, which isan annual event, is open to senior level civil society activistsengaged in the extractive sector, members of parliament servingin the extractive industry, legal practitioners and senior leveljournalists interested in covering stories relating to the miningand extractive industry.Seven Sierra Leoneans including civil society actors, a legalpractitioner and two journalists from the Association ofJournalists on Mining and Extractives (AJME) took part in thetraining. AJME's representatives at the training were DianaCoker, National Organizing Secretary and yours truly MohamedKonneh, Secretary General.The inclusion of media practitioners in the training underscorestheir importance in nation building, especially in a developingcountry such as Sierra Leone, whose natural resources have beenplundered for decades.The role of the media is crucial not only because of its informativeand educative roles, but also because of its role in exposing theodds in society. The extractive industry is a rich sector, withpowerful individuals especially in government, miningcompanies and their shareholders, enjoying the spoils.In view of the distinctive role of the media in bringing sanity in thesector, the need for broadening the knowledge base orcapacitating journalists with the tools required to effectivelyreport on the sector, cannot be overemphasized.The training provides the basis of understanding for mediapractitioners interested in the sector and the difficultiessurrounding it. The training in Ghana focused mainly on thesethematic issues.At the opening ceremony, Guest Speaker Mohamed Amin fromthe civil society platform in Ghana, said "The summer schooloffers significant opportunity for African professionals andactivists to share ideas on the common goal of promoting thesustainable management of the continent's abundant naturalresources".Africa he said is confronted with the paradox of plenty, noting thatthe major setback could be attributed to a chain of factorsincluding commoditization of the policy environment, the rentierstate mentally, the boom effect, institutional weakness, resourceconflicts and vested interests.Mr. Amin went on to state that most resource-rich countries inAfrica are associated with high levels of poverty, poorinfrastructure, institutional collapse and huge debts."The major problems facing resource-rich countries and whichhave hampered their abilities to efficiently manage their resourcewealth for improved living conditions of their people, areproblems of unfair investment and distribution of resourcewealth, poor governance and weak institutions", he said, addingthat natural resources are non-renewable and their prices arevolatile.He challenged the media to continue in the struggle of

…but how effectively will it work???

The Minister of Mines and Mineral Resources,Alhaji Minkailu Mansaray, has launched theCadastre and Online Repository System for the

mining sector in the country at a ceremony held at thePresidential Lounge of the National Stadium inBrookfields, Freetown.Addressing the gathering, the Minister said that the system isan electronically operated one that is free, transparent andcredible.He explained that over the years a lot of attention has beengiven to the mining sector which he said has made itimperative for a system to be put in place to ensure that thecountry is investor friendly.He also explained that this system will greatly project theextractive sector of the country to enhance the country'seconomy to the satisfaction of every Sierra Leonean.He emphasized that the mining sector should be transparentto ensure that it becomes the business of the people whoshould become the greatest benefactors.He stressed that the online repository system is a solid tool forboth Government and investors to derive maximum benefitfrom the mining and extractive sector.He also explained that this system will also keep the peopleinformed on how funds are generated and expended.Potential investors, the Minister noted, should also make useof the online system so that they can have an insight into thecountry's mining and extractive sector.He said the system is capable of drastically stamping outcorrupt practices in the sector.Making a statement, the Head of Mission, European, Union,Jean Pierre Reymondet-Commoy, said through this systemthe people of Sierra Leone will for the first time have fullaccess to the operations and financial aspects of the minesand extractive sector.He expressed happiness to be part of the process, pointing outthat the mines sector is very critical to national development.He noted that the mining sector has a vast potential to helpdevelop the country when procedures are transparent andtailored in the best interest of the people.In his remarks, the Country Director of GIZ, Marina Mdaihlicongratulated the Government and people of Sierra Leone forensuring that the online system of mines registration andrevenue collection become a reality.She stated that they were very proud to have provided boththe moral and financial support to the Sierra Leone MiningCadastre and Online Repository System and to have alsohelped in the training of staff members of the Ministry ofMines and the National Revenue Authority who will beworking on the system.She also emphasized the need for various ministries whohave working relationships with the mines ministry to bemeeting regularly to move the system forward.She concluded that her organization is looking forward to thesuccess of the system.Meanwhile, some concerned citizens have sounded the viewthat the system is bound to suffer some hiccups along the lineespecially given that some relevant information bordering onthe country's mining and extractive industry might not bedisplayed on the online repository and also given that accessto effective internet connectivity remains a major challenge.

Training On Oil and Gas And TheRole Of The Media Ends In Ghana

Mines Minister launches the Cadastre andOnline Repository System

Continued page 26

AJME Magazine May 2012

Page 12

He said even though council gets 20 percent from annual surface rents, he haspersonally made attempts to stop miningactivities taking place around the lake.This he said is because, "That placeshould be an absolute reserved place".K.I Bangura of the Wild Life Sector inthe Ministry of Agriculture Forestry andFood Security, said the lake which hasbeen proposed as a game sanctuary for avariety of animals and spices, should byall indications be listed amongst theprotected areas in the country.Before mining took over the area, thelake used to be a distinctive tourista t t r a c t i o n . N o w t h o u g h ,environmentalists say the lake which issituated right in the middle of the SulaMountain, has eroded considerably as aresult of siltation caused by humanbehaviour. One such behaviour is

massive logging around the lake.Nobody seems to care about the threatunder which the Lake Sonfon is, andaccording to officials of the Ministry ofAgriculture Forestry and Food Securitythat has authority over it, "The situation isabove us because it is the Ministry ofMineral Resources that is issuing licencefor mining activities to take place aroundthe lake".Abu Bakarr Sillah, Assistant SeniorMines Monitoring Officer attached at theMinistry of Mineral Resources office inKabala, the headquarter town ofKoinadugu District, said "The ministryperceives the Lake Sonfon as aspectacular mining spot and not as areserved territory".The whole Lake Sonfon issue hasbecome a major political one, and manycivil society organizations have simplykept sealed lips over it.

Sierra Leone’s Biggest Wetland Neglected …As massive mining takes precedenceFrom page 9

Profits have ballooned in recentyears, but African states haven'tseen their fair share. It's time to

look beyond the woefully inadequatecompensation of voluntary corporatesocial responsibility actions by miningfirms inAfrica.

By Yao GrahamIn 2009, African heads of state adopted theAfrican Mining Vision. Its key objective isthe transformation of Africa's miningsector into a catalyst of broad-based growthand development and a key component of adiversified, vibrant and globallycompetitive, industrializing Africaneconomy.The vision foresees Africa moving awayfrom being a source of unprocessedminerals, towards the production of value-added goods from its mineral resources. Italso recognizes that the governance ofAfrica's mining sector must improve. Itmust become more environmentallyfriendly, more inclusive in sharing itsbenefits, more socially responsible and beaccepted by surrounding communities. TheAfrican Mining Vision also calls for anincreased share of mineral revenues forAfrican countries. In short, the AfricanMining Vision offers a more equitablefuture of economic relations betweenAfrica and the rest of the world.It is Africa's response to the disappointingdevelopmental outcomes of two decades ofmineral policy. From the late 1980s, amidsteconomic crisis, faced with low mineralprices, and under the heavy influence ofwestern aid agencies, African countriesliberalized their mining sectors. Statemining companies were privatized, sold offto foreign investors, and new concessionsawarded under very generous investmentconditions. These involved low royaltyrates, tax exemptions, long-term freezingof tax rates and freedom to retain a highpercentage of earnings abroad.The argument was that resource royalties toAfrican governments, along with thevoluntary community developmentactivities of mining firms, would beadequate developmental returns.Except for a short-lived dip from 2008 to2009, the demand for and price of mineralshave been rising. Between 2002 and 2007the average prices of minerals and metalsrose by 260 per cent-and with them, so didthe profits of mining firms. According to aPricewaterhouseCoopers study, the top 40mining firms enjoyed a 1,900 per centcumulative increase in net profits in the sixyears between 2002 and 2007!But very little of this additional income andprofits went to the mineral exportingAfrican countries, thanks both to thelopsided fiscal terms enjoyed by miningfirms, and to their use of tax avoidanceschemes such as doing business with shell

The roots of inequality: Mining profits soar, but Africans are still poorcompanies in tax havens. Voluntary CSR iswoefully inadequate compensation. The caseof Zambia, for which copper makes up about80 per cent of export earnings, is a goodillustration of the asymmetry of power andbenefits between mining companies on the onehand and African states on the other. Zambialevies a derisory 0.6 per cent royalty on copperin some cases.In 2004, with copper prices averaging $2,868US per tonne, it earned $8 million US inbudget revenue from 400,000 tonnes of copperexported by foreign mining companies. This isa mere fraction of the $200 million US itearned in 1992, before privatization, from thesame volume and similar price of copper. Inthe meantime, with the quadrupling of copperprices between 2002 and 2008, firmsoperating in Zambia such as the Canadiancompany First Quantum Minerals, have seensharp jumps.Over the past decade, a lot of internationalattention has been focused on ensuringextractive-sector revenue transparency indeveloping countries so as to limit corruptionand the misapplication of public monies.Citizens' access to information about publicfinances is extremely important, and is a keyelement of good governance.However, the limits of revenue transparencyfor ensuring an adequate share of mineralrevenues for African countries is highlightedby the wildly disproportionate returns tomining firms and African governments since2002. Completely corruption-free andoptimum use of their tiny royalties would dolittle for Zambia's development prospects.For communities in Africa's mining areas, thepromised development outcomes of themining boom remain illusory. Human rights

violations, tensions and conflicts betweenmining companies and communities arepersistent and widespread. Voluntarycorporate social responsibility interventionsby mining firms have been woefullyinadequate compensation for the disruption oflivelihoods through dispossession of lands,pollution of waters and heavy-handedpolicing in support of the mines.The African Mining Vision exemplifies thegrowing consensus in Africa that the harmfulrace to the bottom to attract mining investmenthas to end. The race has inflicted a 'winner'scurse' of gaining investment, but at the highprice of lost revenues and reduced policyoptions for broad-based and dynamicdevelopment.African countries want to re-negotiate miningcontracts and review fiscal regimes so as toincrease their share of mining revenues.International co-operation is needed to curbthe use of tax havens by transnational firms,including those in mining, which deprive alljurisdictions, especially developing countries,of tax revenues.Africa is the continent with the least industrialcapacity, and increased revenues fromAfrica'smineral wealth could and should helptransform that reality. Communities expect amuch stronger accountability framework forthe human rights, environmental and socialresponsibility of mining firms. These andmore should set the benchmark for support ofAfrica's development efforts by countriessuch as Canada.Yao Graham is the co-ordinator of ThirdWorld Network-Africa, a pan-African policyresearch and advocacy organization based inAccra, Ghana.

editor@embassymag.caCourtesy of Embassy Publications

AJME Magazine May 2012 Page 17

The Campaign for Just Mining(CJM) and School Club onMining and Extractives, on

16th June 2011 joined millions ofAfrican children to commemoratethe Day of theAfrican Child.As part of the commemoration, CJMconducted on-the-spot checks inartisanal mining communities in theeastern and southern regions and theWestern Area to investigate incidencesof child mining in these areas.CJM made the following findingsduring the investigations.

A trend of parents andguardians putting children to work inthe mines as labourers in order togenerate income to sustain the family.

In Kono district, the researchteam saw eight children at work in themine. The children indicated that theyhave abandoned the classroom andjumped into mining due to poverty.

Scores of children interviewedin the district say they no longer attendschool due to mining.

In the southern region,children were found breaking rocks forwhich they are paid Le 10,000 (TenThousand Leones) per day or Le 5,000(Five Thousand Leones) for five hoursof hard labour.

At a granite mining site in theWestern Area Rural District, CJMfound children as young as 6 years ofage breaking rocks for which theirparents/guardians are paid Le 5,000 perhead pan.

The team also took notice ofsexual exploitation in the gold minesacross the districts visited and a highlevel dropout of girls from school dueto rampant teenage pregnancies causedby miners.In light of these findings and in line

with the laws of Sierra Leone includingthe Child RightsAct of 2007 and the

CJM And School Club On Mining Join African Children

To Commemorate The Day Of The African Child

Mines and Minerals Act of 2009, CJM andthe School Club on Mining and Extractivesare demanding the following:

That the Government of SierraLeone and other stakeholders in civilsociety should monitor all artisanal miningareas on a regular basis to discourageunlawful activities such as child labour andsexual exploitation.

That the Government shouldengage parents of children in artisanalmining communities on alternativelivelihood projects.

That the Government shouldincrease the capacity of the Ministry ofSocial Welfare, Gender and Children's

Affairs in terms of budget allocation andnumerical strength to properly handle casesof child mining and ensuring that childrenare in school rather than in the mines.

That the Government shouldensure that primary education is truly freefor all and that teachers and administratorsin primary schools are not adding extraburden on parents and guardians by way ofextra fees, etc.That the Government should create a Child

Goderich, the team found women, men,youths and children breaking stones tomake ends meet.During the Goderich visit, a middle agedwoman Kadiatu Kanu, who was breakingstones alongside a dumb boy called OsmanKanu and said to be her son, disclosed thather husband died in 2003 and therefore hasto go stone breaking to raise funds to sendher children to school.At the same site, Sheik A. Turay and AbieKargbo revealed that they have livedtogether as husband and wife for more thantwelve years and have five children.According to them, the only means they

have to generate much needed income torun their home is to embark on stonebreaking.Also interviewed at the scene was PaulKargbo, a 5-year old boy who was helpinghis mother in the business of stonebreaking. His mother Fatmata Kamara saidshe is willing to send her child to school butdue to poverty she cannot afford the cost."We have to break stones otherwise we willnot have food to eat or even pay our houserent".Children and their parents resting under ashade after heavy work under the hotburning sunAt Hamilton Village along the FreetownPeninsular, the team saw massive sandmining going on under the control andmanagement of the Western Rural DistrictCouncil.Like Goderich, the team discoveredwomen, men and youths, mostly schooldropouts, doing sand mining. The entireenvironment where the sand is being minedis under serious threat of erosion.C o m m i s s i o n t o

engage in raisingawareness aroundi s s u e s o f c h i l dl a b o u r, t e e n a g epregnancy and thelikes.At a place calledOlympus, a formerstone mining site of aG e r m a nc o n s t r u c t i o ncompany in

AJME Magazine May 2012

Truck loading sand

Teenage stone miner in action

CJM members

Stone miners with the dependants

NMJD intern

PAGE 13

By Saa Matthias Bendu

Abeautiful twinkle stone was

discovered on the banks ofGbobonada River in the

Jaima Sewafe Chiefdom in KonoDistrict, precisely in 1927.The news of the discovery spread wideand fast like a bush fire in the dryseason, and within a twinkling of aneye, there was a massive exodus ofpeople from all over the world into thedistrict.This magnificent stone was referred toas the 'Devil's Stone' by the native Konopeople, whilst the westerners called itdiamond.The influx of people from differentnationalities with varied cultural andsocial backgrounds, sparked aninteraction of host and guest thatresulted in a new social setting not easyto define.Then came De Beers, one of the world'srichest mining companies that firststarted mining diamonds in Kono in theearly 1930's. It is now 82 years sincethen, as compared to the large scalediamond production which started inBotswana only 33 years ago.Whilst the production of diamond haspropelled Botswana into rapid socio-economic and in f ra s t ruc tu ra ldevelopment, Sierra Leone's case hasbeen in the reverse, with no end in sight.Bear in mind that there are importantdifferences between the proximity ofopportunities South Africa gave toBotswana and those the greedy andcorrupt British colonial masters have toSierra Leone, have largely been seen asthe reason for the two diversdevelopment situations of the tworesource-rich countries.It is factual that our uninvited Britishcolonial masters were the very ones thatstarted the massive exploitation of ourmineral wealth and planted the seed ofpervasive corruption that currentlyexists in the sector.The colonial masters also woefullyneglected and marginalized the thenrich mining district of Kono in teams ofsocio-economic development, asituation which served as a catalyst forthe formation of the first political partyin the district.The Kono Progressive IndependenceMovement founded by ParamountChiefs T.S Mbriwa and A.A Maniemerged in 1955 in response to thewidespread feeling among the KonoPeople that they were not getting

Author

We should have mourned the discovery of diamonds in Konoenough attention from their nationalleaders.This neglect and marginalizationcontinues unabatedly till date. Regimeafter regime in our 51 years ofindependence, has prostituted the districtfor its huge wealth and nothing more.Kono is constantly placed on the altar ofsacrifice for the development of otherparts of the country and the western world,while she remains abandoned in nudityand backwardness.Kono still lacks good roads, electricity,modern structures, pipe-borne water,effective hygiene and sanitation facilitiesand higher institutions of learning, toname a few.The diamond trade has exposed Konodistrict to massive environmental damageand human rights abuses. The indigeneshave nothing to point at as benefit from theproceeds of mining.During the war, the district became one ofthe hottest spots. Both government-backed and rebel forces fought for thecontrol of the diamonds, thereby causing

massive destruction of lives and property.Rather than being a blessing to the district,the discovery of diamond has turned out tobe a big curse.Over 80 years of mining diamonds and goldin the district has only made the majority ofthe indigenes poorer. There is nothingwhatsoever to celebrate by the people ofKono when it comes to mining in theirdistrict, a situation that has left them in deepregret as to why in the first diamond wasdiscovered in their locality. For them, thediscovery of diamond in Kono is mournful,rather than celebratory.

AJME Magazine May 2012

From page 10agr icul tura l product iv i ty whi lesupporting sustainable natural resourcem a n a g e m e n t a n d p r o m o t i n gt ransparency and par t ic ipa torydemocratic governance.The project also aims at supportingproducers organizations and marketingassociations through a market-driven andvalue chain-based approach that supportsthe achievement of USAID's economicdevelopment goals in the country.The Natural Resources ManagementOfficer of PAGE, Maamod Turay, in aninterview, referred to the forest co-management initiative as an innovativeapproach for the Gola Fores tconservation project, nothing that the oldidea of chasing away intruders has nowbecome an outdated strategy.He said PAGE has engaged stakeholders

in various communities to properlymanage the forest and that they haveprovided agricultural support as analternative livelihood scheme for thecommunities.

''Our objective is to enhance theconservation of the forest, and for it to besustainable you don't have to keep thepeople away from the planning andgovernance processes. We are currentlyoperating in five chiefdoms and 98communities in the Kenema district", henoted.According to him, PAGE has so far beenoverwhelmed by the level of cooperationbetween the organization and the peoplebecause as he puts it "We have createdvillage, section and chiefdom forestmanagement committees to formulatepolicies for the effective utilization andconservation of the forest".

A Standard Practice For Conservation

The diamond trade has exposed Konodistrict to massive environmental damageand human rights abuses. The indigeneshave nothing to point at as benefit from

the proceeds of mining

Page 16

Chief Tuayemie disclosed that sincethere relocation by Sierra RutileCompany in 1987, no provision has beenmade for health centre, school, pipeborne water and other social facilities.He added that it was quite recently thatWorld Vision with funds from Irish Aidthrough the Impere Area DevelopmentProgramme (IADP) built a MCH post forthem at Kahekay Junctionla. He alsodisclosed that CARE International, tenyears ago, dug a water well for thecommunity with a view to addressing theacute water problem, but that the saidwell has since become a white elephant.“We are totally abandoned by thecompany. Since our relocation overtwenty years ago amidst promises, thecompany has hardly paid us a visit toknow how we are coping or ask usquestions regarding our constraints”, hepointed out rather frustratingly.The chief furthered that they have made

several complaints to government andthe company regarding their deplorablecondition of living, but that no step hasbeen taken to address their problems. Headded that during mining operations, theshock and dust emanating from theapplication of heavy mining machineriesinflict many unexplainable illnesses onthem. He cited cholera and tuberculosisas some of the most common ailments inthe community, and attributed them to airpollution caused by over speedingcompany vehicles amidst heavy dust.“Our fertile agricultural land has beentaken away from us and presently if wewant to farm we have to walk for morethan twenty miles to and fro, which wasnot so when we were at Gangama”, ChiefTuayemie said, adding that “Our poorlyfed children have to walk seven miles toschool all the way at Moriba Town andseven miles back each day”.He said the company has failed to buildthem community facilities such as courtbarray, mosque, church and school, asearlier promised. Because of lack of easyaccess to land, most people he said areunable to carry out their usual farmingactivities, thereby causing food shortagein the community. “We are dying ofstarvation, and nobody seems to care”,he maintained.Talking to Simeon Amara, the ChiefdomSpeaker of Impere Chiefdom, hereiterated that “Indeed, the muchexpected benefits from rutile and otherminerals that this chiefdom has, are nowlike a sour grape on the tooth of thecommunity people”.Chief Simeon Amara stated that theywere relocated from Old Belleh Town

"Rutile Is Not Beneficial To Us"From Page 15

(where Sierra Rutile Company Limited isnow mining). He described Old Belleh Townas notable for agricultural productivity,stressing that their relocation from there hasturned out to be an undue punishment.“We used to produce food in abundance andhad free access to sea foods including fishand crab, but nowadays, since our relocation,things have changed for the worse”, he said,furthering that “The so-called New BellehTown where we have been relocated, is acomplete desert, with no access to farmland,no bush for hunting, and absolutely no socialfacilities to make life worth living in thisplace”. Everything here is money, he pointedout.“We have been here for over 20 years”, he

went on, noting that “Some of the houses thatyou see here were built by the company andthe host of others were built by thecommunity people themselves”. Accordingto him, the houses built by the company fortheir relocation are far below standard.He referred to their health situation asdeplorable, stressing that the community ispresently without a health facility to respondto the spate of ailments affecting the peopleas a direct result of mining. He citedhypertension as one of the health hazardsconfronting them.The chief further stated that the amountgiven to them for crop compensation

annually is not commensurate to what theyused to get from the sale of their crops,adding that the community has evenappealed to the company to increase thepayment to a period of 20 years, just so as toenable them receive something substantial.Rather uncompromisingly, Chief SimeonAmara stated that the much talked aboutAgricultural Development Fund (ADF) isnot working well for them. He said thecompany is paying them a surface rent of $10 (Ten US Dollars) per acre, stressing that“The most unfair thing is that when the leaseagreement was entered into, neither thegovernment nor the company consulted withus who are the rightful owners of the land”.Chief Amara further stated that the surfacerent of One Million Leones paid by thecompany to family heads as crop

compensation each year is too small andshould be reconsidered by the appropriateauthorities.He also noted that the AgriculturalDevelopment Fund should be paid directly tothe community people rather than to thegovernment in Freetown where the money isoften delayed for no good reason. “For thisyear, Sierra Rutile paid the money togovernment in March but we only got it inOctober, when the planting season had longpassed”. The distribution chain of themoney, he maintained, is quite unfair.He mentioned unemployment and the lack

of transport facilities to convey pupils toschool as major challenges affecting the

community.“The entire road system is very deplorable asonly the main roads that lead to the miningsites are graded”, he went on, adding that“Minerals are God given gifts and shouldfirst and foremost benefit those living aroundthe vicinity where they are mined, but inRutile it is completely the opposite”.

A mined out site in the heart of Rutile … now a mighty river

Main road leading to mining site being graded

Chiefdom Speaker, Simeon Amara

Salifu at the Sierra Rutile mine site withoperating dredge seen in the background

The collapsed Solondo dredge: Still begging for rescue

AJME MagazineMay 2012

Alhaji Minkailu Mansaray

By Abu Bakarr Munu

Kono District, situated in theeastern part of the country, isknown beyond boundaries as

being one of the major producers ofhigh quality diamonds around theworld.Mining began in the district as early as1930. The district is often referred to asthe bread basket of the country, butironically, it is one of, if not the leastdeveloped, with almost all the basicsocial amenities completely lacking,including pipe-borne water, electricitysupply and good road network.Successive governments over the yearshave failed woefully to put properdevelopment mechanisms in place forthe people in that community and hence,development in the district is nothinggood to write home about.It was against this background that acivil society activist, Mohamed Jabbie,born and breed in Kono, recentlydescribed development in the district assluggish, while talking to theAssociation of Journalists on Miningand Extractives (AJME) in an interview.Mr. Jabbie, speaking generally on thesituation in the district, noted that thereare over 20 mining companies operatingin there, with Koidu Holdings MiningCompany Limited (KHL) which isdoing Kimberlitic mining, being thebiggest with a long term mining leaseagreement with the Government ofSierra Leone (GoSL).The mining method employed by KHLis affecting the lives of the people livingwithin the blasting perimeter greatly, hesaid, adding that "Each and every timethe company wants to blast, you will seepeople running for their lives, leavingbehind all their personal belongings andwhatever they are doing". This he saidhappens after a short notice by alarmingthe sheering. "Sometimes securityguards of the company will forcefullyask you out of your house, even if itmeans going under rain", Mr. Jabbiestated.As a way of proving a point, Jabbie citedan example wherein a pregnant womanwas forced to go into premature labouras a result of the blasting and gave birthto a baby girl that was later named'Blastiner'.He mentioned the fact that resettling theaffected property owners living withinthe concession and compensating themfor their crops remain major sources of

Page 14

"Development In Kono Is Sluggish”…Says Activist conflicts, noting that the company is yet to

fully commit itself to theMr. Jabbie expressed regret that KHL hiredthe services of officials from the Ministry ofAgriculture Forestry and Food Security toundertake the assessment of plantationsowned by affected property owners, sayingthat the exercise was done in favour of thecompany. According to him, anindependent body should have been the bestto undertake such an important exercise.He said in all, 284 property owners fromfive villages namely Sokogbe, SwarrayTown, Saquee Town, New Senbehun andYarmadu village, are directly affected bythe operations of the company, with almosthalf of that amount still awaitingresettlement to safer locations.Tamba James, a civil works engineer and ason of the soil, who was asked to give anexpert view on the mining method of KHL,said "The blasting done by KHL has bothshort and long term adverse effects on thepeople as well as on the environment".He noted that most of the people that areappreciating the work of KHL and what ishappening in Kono with respect to miningactivities, are doing so because of personalgains.The engineer said the chemicals thecompany is using are harmful, adding thatthese chemicals later convert intopoisonous gases in the air."The majority of the people in Kono areliving in abject poverty. I am not happy. Isee it as a betrayal. Our elders have soldKono, Tankoro Chiefdom in particular.This is a fact some people don't want toaccept," Tamba James charged.He also pointed out that the cloudyatmosphere created by the blasting ispolluting the air and that it is not good forhuman health, as its affects the respiratorysystem and lead to cough and cold. This wasconfirmed by the Kono District MedicalOfficer, Dr. Samuel Kietell.An affected property owner, Kai LawrenceM'bayo, said they are dissatisfied with thecompensation paid to them by KHLbecause according to him, the assessmentdid not cover shrines and other sacredplaces including graves.Plantation items such as mango, orange,and coconut trees are paid for Le 5, 000(Five Thousand Leones) per tree for aperiod of five years and above all he said theprocess of resettling the people is far frombeing satisfactory, Mr. M'bayo maintained.It remains to be seen what the currentmission of the newly constituted executiveof APOA is, but what is clear is that thewidely recognized executive of theassociation was deliberately plunged into

disarray and rendered completelyineffective due to high level manipulation.Meanwhile, Koidu Holdings, in what hasbeen referred to as window dressing, has forthe first time in its mining history in thedistrict, undertaken a substantial corporatesocial responsibility drive.The company recently constructedclassroom blocks, market, hospital and otherfacilities such as mosque and church, at theKania Resettlement Camp, where personspreviously resident within the blastingperimeter were relocated for safety reasons.While the company has made huge publicityout of the provision of the said facilities,concerns have been raised by the inmates ofthe camp regarding the management andfunctioning of the hospital.In a press interview, the CommunicationsDirector of KHL, Ibrahim Sorie Kamara,stated categorically that once the companyhands over the finished hospital buildings tothe community, it will now be theresponsibility of the government to takeover its overall day-to-day running.Many people had thought that the companywill equip the hospital and bring in its ownmedical doctors to administer free treatmentto patients entitled.Meanwhile further, doubts still exist over thedeath of an indigenous youth, whose bodywas discovered in a pit within KHL'sconcession. There is no evidence of anyinvestigation into the matter. The deathcame amidst concerns by the company thatits concession is being raided by illegalartisanal miners.With Paul Ngaba Saquee, Paramount Chiefof Tankoro Chiefdom who doubles aschairman of the Village ResettlementCommittee (VRC) now serving as unofficialspokesman of KHL, it is said that the futureof the chiefdom hangs in a balance. Despitethe fact that persons within the original 250meters radius of the KHL blasting perimeterare yet to be fully resettled, the company hasbeen given the green light to expand itsoperations to a further 250 meters deeperinto the Koidu City, thereby generating anew caseload of over 700 affected familieswho are going to be in urgent need ofrelocation or suffer the inconveniences ofleaving their homes each time blasting is tobe done.Recently, a man died when he was forced outof his home for blasting to go on. The man issaid to have been gravely ill and that he diedright inside KHL’s ambulance. This deathcould have been avoided had theg o v e r n m e n t e n s u r e d t h e s t r i c timplementation of the Jenkins JohnstonCommission of Inquiry recommendations.

AJME Magazine May 2012

"Rutile Is Not Beneficial To Us"…says Section Chief

Continued page 17

Page 15

By Salifu Conteh and Musa KamaraSince the commencement of miningactivities in Sierra Rutile, located inBonthe District, southern SierraLeone, the inhabitants are yet to seeany benefit coming their way.Despite the huge natural wealth aroundthem, the indigenes live in abjectpoverty and high health hazards, whileat the same time subjected to violationsand deprivations from miningcompanies, particularly the SierraRutile Company Limited.Many land owners have beendispossessed of their lands andplantations, and even displaced fromthe ancestral homes.The affected people have forwardedc o m p l a i n t s r e g a r d i n g t h e i rdissatisfaction to the immediate pastand present governments of SierraLeone and several other quarters, andeven staged a number of protestactions to vent out their grievancesagainst the companies, but as it seems,nobody has acted in their interest. Theyremain disillusioned and could go onthe rampage anytime, especially nowthat Sierra Rutile Company Limited isworking on plans to expand itsoperations.Despite corporate social responsibilitypromises, the Sierra Rutile generalarea is a complete shadow of itself,with a mass of artificial lakes litteringthe entire community and posing asdeath traps. Scores of peopleespecially children, have drowned inthese lakes, with no compensation orattention paid to the bereaved families.Families that have been resettled toplaces far removed from theirtraditional settlements where they usedto have everything in abundance andhardly buy anything from the marketexcept rare items like salt and maggie,

are now suffering from extreme hungerand deprivation, due mainly to theunavailability of land to enable themundertake their usual smallholder farmingactivities.Resettled communities, apart from theexposure to hunger and deprivation, arealso lacking in health facilities and otherbasic social amenities earlier promised.In the entire Rutile area, there isabsolutely no hospital or health centrebuilt or supported by Sierra RutileCompany Limited or VIMETCO, theother company operating there. The healthcentre at Kahekay was built by WorldVision with funds from Irish Aid throught h e I m p e r e A r e a D e v e l o p m e n tProgramme, while the one at MoribaTown was built by the Government ofSierra Leone through the NationalCommission for SocialAction (NaCSA).Both health centers operate withoutelectricity, making it more than difficult toeffectively administer treatment to thehundreds of patients that frequent there ondaily basis.Emergency cases are referred to eitherSerabu or Matru Jong hospitals at theexpense of the relatives of the sick. Thecompanies occasional ly provideambulance to convey dying patients tothese referral hospitals, but not withouttearful pleas.Many residents have expressed regret thattheir homeland is endowed with so muchnatural resources. According to them,their lives were better off before thecommencement of mining in theirlocality.“Mining has only made us become poorerand miserable”, they said, adding that“The only benefits we've seen so far aretotal blackout, bad roads, high cost ofliving, unavailability of farm lands and theoutbreak of contagious diseases likeTuberculosis, diarrhoea and respiratoryproblems”.

They also grumbled about employment,pointing out that despite the fact that twomining companies are operating in thearea, unemployment remains a big issue,with 80-85 per cent of the populationdirectly affected. Priority they say, isgiven to people outside the affectedcommunities.In one relocated community called LungiVillage in the Impere Chiefdom, youcould hardly see smile on the faces of thep e o p l e . E v e n t h e s u r r o u n d i n genvironment can tell you that things arenot in any way rosy for the residents, mostof whom are living in makeshift andunprotected buildings. This village wasrelocated in 1987 from where the Solondodredge collapsed some two years ago.The Section Chief resident in the village,Alfred Tuayemie, said in a rather angrymood while highlighting the ordeal he andhis people are going through, that “Theminerals deposited in our homeland havebecome a curse rather than a blessing tous”. This he said has left deep scars ontheir minds as could be seen in their facialexpressions.Chief Alfred Tuayemie recalled that backin Gangama Village where they werebefore the relocation, life was quitepleasant for them in terms of their livingcondition.According to him, no concrete

agreement was made with them regardingthe terms of their relocation, therebyputting them at the mercy of the company.He said the houses under which they areliving were built by the villagersthemselves, noting that what the companygave to them for the construction of thehouses is nothing good to talk about. Hesaid the company, rather than supplyingthe required building materials to them,ended up selling items such as zincs tothem at high prizes.

Section Chief Alfred Tuayemie talking to AJME's Salifu Conteh

Lungi village court barray invery bad shape

A hungry family at Lungi village, with asuckling mother sitting hopelessly with

her four children

AJME Magazine May 2012