Sierra Leone’s booming mining sector has generated nearly $4 billion in exports since 2018, yet the government captured only a fraction of that wealth. Finance Minister Sheku Fantamadi Bangura admitted that under past agreements, state earnings were largely confined to taxes and royalties, leaving the treasury with just 5% of total export value.
In 2024 alone, $1.5 billion in mineral exports brought in only $16 million for the government. Bangura called the arrangement unsustainable and detrimental to national development, underscoring the urgent need for reform.
To close the gap, the government has begun implementing the Mines and Mineral Development Act 2022, which grants Sierra Leone a 10% free stake in all large-scale mining projects and the option to secure up to 35% equity in joint ventures. Supporting this structure are two new state-backed entities: the Sierra Leone Mines and Mineral Development and Management Corporation (SLMMDC) and the Mineral Wealth Fund (MWF), designed to channel revenues and ensure mining operations remain financially independent of the national budget.
The new framework is already being tested with landmark land lease agreements for the Kasafoni iron ore deposits in Tonkolili and Koinadugu Districts. A government delegation led by Bangura visited the chiefdoms of Diang, Sambaia, and Dansogoia to finalize agreements with landowners.
Deputy Information Minister Bocakarie Abdel-Aziz Bawoh confirmed the SLMMDC will manage the concessions, citing models from Namibia, Botswana, Ghana, and Nigeria as guides for Sierra Leone’s approach.
Bangura described Kasafoni as a “strategic national asset” and emphasized that its allocation to the SLMMDC and MWF reflects the administration’s determination to make mining a driver of development. “This initiative is part of our broader vision to ensure mining contributes meaningfully to sustainable development and revenue generation for the people of Sierra Leone,” he said.
