MINING SECTOR
Sierra Leone is well known for its vast endowment in minerals which include diamonds, rutile, bauxite, gold, iron ore, limonite, platinum, chromite, coltan, tantalite, columbite and zircon, as well as promising petroleum potential.
In the 1990s, the 11-year civil war funded with revenue from the minerals sector engulfed the country, resulting in widespread killing, the destruction of infrastructure and a severe contraction in the economy. The sector was also greatly affected by the dual shock of the drop in iron ore prices and the Ebola epidemic in 2014.
Mining has been the mainstay of the economy since independence and the government has remained heavily dependent on mineral resources to promote sustainable economic growth over the years.
The government’s drive is to improve integrity in the mining sector and ensure the country maximizes gains from its mineral resource endowments. It established the National Minerals Agency in 2012 and the Environment Protection Agency in 2008, enacted the Mines and Minerals Act of 2009, and the Public Financial Management Act of 2016, and the Extractive Industries Revenue Act of 2018 to improve transparency and accountability in the minerals sector. In 2018, the government approved the Sierra Leone Minerals Policy, the Artisanal Mining Policy, and the Geodata Policy, and currently awaits the interpreted report of a geophysical survey that collected data in 2019 on the type, quantity and location of minerals in the country.
LEADING SUB-SECTORS
Mining activities require machinery and equipment, construction, and other services, which presents the best prospects for companies as their importation is on the increase.
Companies with expertise in geological and exploration services, feasibility and engineering services, equipment and plant maintenance and repair, and spare parts for mining equipment can find this sub-sector attractive and rewarding.
Mining consumables including explosives, tires, Grinders, Crushers, Magnetic Separation machines, and lubricants are also in high demand.
Construction services are key, especially for exploration companies expected to set up the peripheries to commence work.
OPPORTUNITIES
Investment opportunities exist for companies to venture into mining using the most advanced technology to access and export minerals.
Exportation of mining and construction equipment and services present an opportunity for firms producing or involved in the marketing of such equipment.
Demand for technical and engineering services is likely to increase, particularly with the release of the report of the airborne geophysical survey.
With more investors expected to enter this sector, construction and the demand for construction materials will increase.
Oil mining in one of the offshore seven blocks.
For more information, visit website: https://www.slminerals.org
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