Mining in Sierra Leone

Diamond miners in Kono District

The mining industry of Sierra Leone accounted for 4.5 percent of the country's GDP in 2007^[1] and minerals made up 79 percent of total export revenue with diamonds accounting for 46 percent of export revenue in 2008.^[2] The main minerals mined in Sierra Leone are diamonds, rutile, bauxite, gold, iron and limonite.

Mining in Sierra Leone, especially diamond mining, has been seen as one of the key factors for instability in the country and one of the reasons for the country's recent civil war. Traditionally, benefits from diamond mining have ended up with private companies and corrupt officials rather than the country's government and people.^[3] The Ministry of Mineral Resources is responsible for the management of the country's minerals sector and the Mines and Minerals Act 2009. Sierra Leone is a candidate for the Extraction Industries Transparency Initiative (EITI).

History

Organised mining began in the 1920s with bauxite first being recorded in 1920 along the Falaba to Waia road.^[4][5] Diamonds were found in the early 1930s, from 1934 to 1956 the Sierra Leone Selection Trust (SLST) held the monopoly for mining, prospecting for and marketing diamonds though out Sierra Leone. The Consolidated African Selection Trust Ltd (CAST), which owned mining operation around West Africa, provided the initial capital for the SLST.^[6] The monopoly was originally given for 99 years but in 1955 the SLST gave up rights to alluvial deposits outside its lease area. This allowed artisan and small scale mining of alluvial deposits, and by 1965 there had been a large movement from agricultural work to working these deposits.^[4] In 1970 a joint SLST and government organisation was formed call the National Diamond Mining Corporation (NDMC).

Before the start of the Civil War in 1991 250,000 people made a living in the mining and quarrying sector with direct and indirect employment accounting for 14% of the country's total labour force.

Rutile

Sierra Leone is ranked as one of the top five producers of rutile, a titanium ore, used in paint pigment and welding rod coatings. The government issued leases for mining rutile are held by Sierra Rutile Limited which is owned by Titanium Resources Group which is owned by European and U.S investors. These leases cover 580 km2 of land where there are 19 identified deposits of rutile. In 2009 the Government of Sierra Leone received Le 1,854 million in royalties from rutile mining.^[7][8] In 2009 production decreased by 19.07 percent to 63,860 tons, and exports were worth US$ 35,920,300.^[9]

Gold

Gold mining in Sierra Leone consisted of small scale operation exploiting alluvial deposits.^[5] After the end of the Sierra Leone Civil War exploration of gold grew and by 2013 to 2015 new modern mines are expected to be in production. In 2010 Cluff Gold, a British company, found gold deposits in the rocks of the southern Kangari hills and is planning to build a mechanised mine to extract it.^[10] In 2009 production levels of gold fell by 17.71 percent to 5060 Troy Ounces (157 kg) from 6150 Troy Ounces (191 kg) in 2008. This was due to a drop in mining activity in the second half of the year and was despite a rise in the price of gold on the global market. The increase in the value of gold meant gold exports were worth 15.73 percent more at US$4,764,000 in 2009 compared to US$4,116,400 in 2008.^[9]

Diamonds

Diamonds are found in about a quarter of Sierra Leone in the south-east and east of the country, with the diamond fields cover 7,700 square miles. The main production areas are concentrated around the drainage areas of rivers in the Kono, Kenema and Bo Districts. In the Kono, Kenema, Bo and Pujehun Districts there are 1,700 artisanal mining licenses in operation.^[5] In 2009 the government recorded exports of 400,480 carats (80,096 g) of diamonds, this included 143,620 carats (28,724 g) of industrial diamonds and 256,860 (51,372 g) of gem diamonds. This was and increase of 7.86 percent on the previous year which was a result of legislative changes, in the form of a new mining law, to enable fees and royalties to be collected more effectively and an increase in the amount of diamond mining. Diamond exports were worth US$ 78,373,900 in 2009 accounting for 59 percent of the country's exports. The drop in the value of diamonds on the world market meant that the value of diamond exports decreased by 20.68 percent in 2009 compared to 2008.^[9]

The largest diamond found in Sierra Leone, and the third largest diamond in the world, was a 969.8 carat (194 g) rough diamond. It was found in the 1972 and named the Star of Sierra Leone.^[5][11]

Bauxite

Sierra Leone's production of bauxite, an aluminium ore, is around one percent of the total global production. Deposits occur between Moyamba and Mano, on the Freetown Peninsular, at Krim-Kpaka in the Pujehun District, southern Sierra Leone; in north on the road from Falaba to Waia, at Kamakwie and Makumre.^[5]

Sierra Minerals Holdings is the only company mining bauxite in the country, and the second largest employer in the mining industry.^[7] It runs the Sieromco Bauxite Mine as well as holding the mining lease to 321.7 km2.^[7][9] In 2009 production of bauxite fell by 22.17 percent to 742,820 tons. This was due to Sierra Minerals ceasing production from June to September 2009 as a response to falling global demand for aluminum, which is produced from bauxite.^[9]

Iron

Mining for haematite iron ore recommenced at Marampa mine on 11 February 2010 after 35 years. The mine is owned by London Mining which also owns an exploration license covering 319 km².^[12]

References

1. ^ African Development Bank, OECD - Organisation for Economic Co-operation and Development (2009). African Economic Outlook 2009: Country Notes: Volumes 1 and 2. OECD Publishing. pp. 562–563. ISBN 9789264076181. http://books.google.com/?id=e91T-0zSWnAC&pg=PT565&dq=mining+gdp+sierra+leone#v=onepage&q=mining%20gdp%20sierra%20leone&f=false. 
2. ^ Geological Survey (U.S.) (2010). Minerals Yearbook, 2008, V. 3, Area Reports, International, Africa and the Middle East. Government Printing Office. p. 35.1. ISBN 9781411329652. http://books.google.com/?id=cOUq1JKeQ18C&pg=SA31-PA19&dq=mining+sierra+leone#v=onepage&q=mining%20sierra%20leone&f=false. 
3. ^ Federico, Victoria (2007). "The Curse of Natural Resources and Human Development". L-SAW: Lehigh Student Award Winners. http://jsaw.lib.lehigh.edu/viewarticle.php?id=924&layout=html. 
4. ^ ^{a b} Schwartz, Priscilla (31 October 2006). Sustainable Development and Mining in Sierra Leone. Pneuma Springs Publishing. pp. 28–29. ISBN 9781905809059. http://books.google.com/books?id=PVxYle1d2X0C&pg=PA28. Retrieved 22 March 2011. 
5. ^ ^{a b c d e} "AN OVERVIEW OF KEY MINERALS". Sierra Leone Ministry of Mineral Resources. 21 January 2010. http://www.slminerals.org/content/index.php?option=com_content&view=article&id=5&Itemid=9. Retrieved 19 March 2011. 
6. ^ Greenhalgh, P. A. L. (1985). West African diamonds, 1919-1983:an economic history. Manchester University Press ND. p. 3. ISBN 9780719017636. http://books.google.com/?id=a8jmAAAAIAAJ&pg=PA11&dq=history+of+diamond+mining+sierra+leone#v=onepage&q=sierra%20leone&f=false. 
7. ^ ^{a b c} "KEY PLAYERS OVERVIEW". Sierra Leone Ministry of Mineral Resources. 21 January 2010. http://www.slminerals.org/content/index.php?option=com_content&view=article&id=8&Itemid=12. Retrieved 19 March 2011. 
8. ^ "Background Note: Sierra Leone". U.S Department of State: Economy. 8 March 2011. http://www.state.gov/r/pa/ei/bgn/5475.htm. Retrieved 19 March 2011. 
9. ^ ^{a b c d e} "Annual Report and Statement of Accounts for the year ended 31 December 2009". Bank of Sierra Leone. 2009. http://www.bsl.gov.sl/pdf/AnnualReport2009.pdf. Retrieved 19 March 2011. 
10. ^ "Getting at the Gold in Southern Sierra Leone". Voice of Africa news. 22 April 2010. http://www.voanews.com/english/news/africa/Getting-at-the-Gold-in-Southern-Sierra-Leone-91822889.html. Retrieved 19 March 2011. 
11. ^ Edward Erlich; W. Dan Hausel (November 2002). Diamond deposits: origin, exploration, and history of discovery. SME. p. 69. ISBN 9780873352130. http://books.google.com/books?id=068-M3xrDSQC&pg=PA69. Retrieved 23 March 2011. 
12. ^ "Marampa Haematite Iron Ore Mine, Sierra Leone". mining-technology.com. http://www.mining-technology.com/projects/marampamine/. Retrieved 21 March 2011.