Sierra Leone’s Ministry of Mineral Resources is implementing a program of legal and regulatory reform governing the minerals sector. Leading the way is the new Mines and Minerals Act 2009 which has been approved by the Cabinet and will be presented to Parliament. Hon. Alhaji Alpha Kanu, Minister of Mineral Resources and Political Affairs, says that the act “is a major departure from previous mining legislation that will bring important benefits to the economy, communities and the country. It is more comprehensive with respect to the issues it addresses, more balanced between the interests of the sector and those of communities, and more rigorous in terms of governance and oversight”.

The four objectives of the act:

• Addresses several issues not previously covered by the law including health and safety, environmental protection and community development
• Tightens rules for administrators and mineral rights holders including application and reporting requirements
• Promotes investment and minerals sector development by ensuring security of tenure and preventing companies from holding land under licence for too long without demonstrable activities
• Rebalances fiscal benefits – including higher royalty rates for precious stones and precious minerals – between companies, communities and government.

Kanu: “This act ushers in a whole new era for the sector’s development and management. Many of the key additions to the bill revolve around social issues including community development, environmental protection and health and safety. For the first time, certain licence holders will be required to enter into Community Development Agreements with the host community. In addition, a stronger governance and oversight regime is being introduced, led by much more stringent reporting requirements for companies and more important roles for the Minerals Advisory Board and the Mining Cadastre Office.”

On the sector’s development, the Minister commented that “the new licensing regime is to be based on a ‘use it or lose it’ approach. A number of provisions have been introduced to substantially increase the obligations of a licence holder over time, thus encouraging exploration”.

Work on the bill is being supported by the development of:

1. Regulations associated with the issuance and management of mineral rights

2. A new Diamond Trading Act and supporting regulations to strengthen the legal and regulatory framework governing the trade of rough diamonds and to ensure full compliance with the Kimberley Process

3. Artisanal mining regulations, introducing stronger provisions on mining methods and the protection of the environment, improved terms and conditions for workers, and clarifying the commercial terms between supporters and artisanal mining licence holders.

“This set of legal and regulatory reforms signifies the ministry’s commitment to ensuring that the maximum possible benefits of extraction activities are generated for the country and the people” says Minister Kanu. “I invite the minerals sector companies as well as civil society and the community to doing their part, along with government, to ensuring the act’s effective implementation”.