His Excellency President Julius Maada Bio has received the sum of 53 billion Old Leones from the Leone Rock Metal Group as Community Development Agreement (CDA) Fund, and also commissioned a 12 million tons per annum (MTPA) processing plants and 12 locomotive (train) engines owned by the same mining company.
The President received the CDA Fund on behalf of the people of three chiefdoms where the mining company operates. These chiefdoms including Dansogoia, Simiria and Sambaia all in the Tonkolili District, Northern Sierra Leone.
Paramount Chief of Dansogoia Chiefdom, Bockarie Yelen Koroma III, praised President Bio for making it a law that all mining companies, who are mining in communities, must give back to the people of those communities at least 1% of their annual gross revenue.
“This has left an indelible print in the lives of our people. This is because, over the years, these CDA funds have been used to construct schools, health centers, bridges, and rehabilitate feeder roads within our communities,” he said.
Minister of Mines and Mineral Resources, Julius Mattai, said President Bio’s transparent and accountable style of governance had made it possible for mining companies to be giving back to communities where they operate, adding that in previous governments, communities were never benefiting from mining royalties.
“Last year, Leone Rock Metal Group did a total export of 1.2 billion United States Dollars of minerals and because of that, the company was providing at least 1% as a CDA fund to communities. In May 2022, the company provided 5.6 billion Old Leones as CDA, in March 2023, it also provided 20.3 billion Old Leones as CDA. A 12-MTPA processing plant was going to be installed and 12 locomotive engines were also going to be commissioned. This is a great improvement,” he said.
Chinese Ambassador to Sierra Leone, Wang Qing, said the Tonkolili mining project was the biggest Chinese investment in Sierra Leone, adding that the mutual beneficial ties between China and Sierra Leone has paved a way for that.
“The government’s support has been playing a great role for the success of the Chinese investments in Sierra Leone. I am confident that there will be more success because of our strong economic cooperation,” he noted.
In his statement, President Bio said Leone Rock Metal Group has invested millions of United States Dollars to mine iron ore in Tonkolili district, noting that the more Sierra Leoneans make them comfortable, the more the company would continue to mine, pay taxes to government and pay at least 1% of CDA to the mining communities.
“This is a testament of our oversea campaign to bring foreign direct investment to Sierra Leone. I am particularly impressed about the transformative initiative that Leone Rock Metal Group is spare heading in the mining sector. Just over a year ago, we gathered here to commission start of a 12-MTPA processing plant and now we are here to commission the completion of that processing plant,” he told his audience.
He recalled that previously, the company was only exporting the dust of the iron ore but now, it had completed a processing plant that would have to be processing the iron ore here in Sierra Leone.
“Because of this processing plant, we now have the capacity to improve on the quality and quantity of iron ore. The company has also brought in a state-of-the art locomotives. This will also help in the transportation of the iron ore,” he said.
He said the decision to support the expansion of the port and railway underscores his government’s confidence in the private sector investment, adding that his government will make sure the people benefits from the mining activities that are taking place in their communities.
“This is my government’s own way of reducing poverty and accelerating development in your communities. As long as we are here, we will continue to be fair to our people who live in communities where mining activities are taking place. But is also our responsibility to make the investors feel comfortable in our midst,” he told his audience.
He therefore received the symbolic presentation of the cheque of 53 billion old Leones on behalf of the three mining chiefdoms.
