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Minerals Policy Assessment and Development Experiences from Sierra Leone

Minerals Policy Assessment and Development Experiences from Sierra Leone. Agenda. Introduction to Sierra Leone Brief introduction to ASI and our role in Sierra Leone Economic context and potential Overview of Sierra Leone’s minerals sector and the role of artisanal mining

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Minerals Policy Assessment and Development Experiences from Sierra Leone

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  1. Minerals Policy Assessment and Development Experiences from Sierra Leone

  2. Agenda Introduction to Sierra Leone Brief introduction to ASI and our role in Sierra Leone Economic context and potential Overview of Sierra Leone’s minerals sector and the role of artisanal mining Governance arrangements Current policy framework Policy formulation issues Policy implementation issues

  3. Sierra Leone • Small country in West Africa • Gained independence from Britain 1961 • Abundant natural resources include rutile, diamonds, bauxite, gold, iron ore, platinum • Security and stability a major success following end of war in 2002

  4. Introduction • Two-year DFID funded project in Sierra Leone to provide technical assistance to the Ministry of Mineral Resources (MMR) • Purpose: To strengthen the efficiency and capacity of the MMR to achieve its mandate • Objective 1: Increase private sector investment • Objective 2: Increase government revenue • Activities include day-to-day management support, policy development, legal and regulatory reform, stakeholder communications

  5. Economic context • Estimated to be 150,000 to 300,000 artisanal miners (grassroot diggers) • In 2006 artisanal miners produced approximately 80% of the country’s diamonds

  6. Potential Mining sector can serve as an engine of economic growth Expect an extra GDP growth of 1.2% per year if supported by a growing mining sector With new investment in the mining sector, GDP per capita can be 6% higher in five years than it would be without mining growth, and 17% higher by 2020 • Increased government revenue can accelerate poverty reduction

  7. However…..

  8. Governance • MMR has the responsibility for regulating, managing and monitoring the minerals sector • Mines Division administers provisions and regulations of Mines and Minerals Act • Geological Survey Division is responsible for geological data collection and supervises prospecting and exploration activities • Gold and Diamond Office is responsible for evaluating precious minerals and charging export taxes

  9. Sector overview • Currently 130 non-artisanal licenses issued by MMR: • 38 Prospecting (approximately 16 licenses are not for diamonds) • 47 Exploration (approximately 12 licenses are not for diamonds) • 35 Small Scale Mining (nearly all are related to alluvial diamond mining) • 10 Large Scale Mining (5 are for diamonds, 2 stone quarrying,1 iron ore, 1 bauxite and 1 rutile)

  10. Sector overview 2 • Artisanal licenses: • 2006: 2,184 licences • 2007: 1,968 licences • Only available to Sierra Leoneans • Estimated to be 2,000 unlicensed • Exporter licenses: 9 (for alluvial diamonds) • Dealer licenses: 82 (for alluvial diamonds) • Supporters (must register with GME)

  11. Policy framework • MMR’s mandate is “develop policies and programmes for the systematic and economic exploration of mineral resources” • Core Mineral Policy (CMP): Comprises 10 strategic objectives • CMP Vision: “The CMP will facilitate the creation of a fair and transparent business environment that will stimulate the development of a successful minerals sector” • Policy Measures Relating to Small Scale and Artisanal Mining and Marketing of Precious Minerals

  12. CMP objective 6 • Objective: “Improve the Regulation and Efficiency of Artisanal and Small-Scale Mines” • Principle: “The Government will regulate, monitor and administer artisanal and small-scale mining in a manner that will create open competition, continuity and security of tenure for license holders, and make it advantageous for the miners to work within the legal system and therefore minimise smuggling”.

  13. Policy formulation issues • CMP was developed under previous government • CMP was developed outside of MMR • Overall CMP is a sound framework • Policy measures for SSM and artisanal has not been passed as government policy • 2007 Strategic and Environment Assessment • Weak linkages with policy forums • Transition from administering processes to economic policy

  14. Policy implementation issues • Human capacity constraints • Financial capacity constraints • Decreasing donor support • Incentives • Political issues • Change in mindset from fire-fighting to strategic management • Director General • Overload on “champions” • Ongoing review of mineral rights by government task force • Role of civil society

  15. Thank you

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