$4B in Mining Exports, Sierra Leone Gets 5%
Finance Minister Sheku Fantamadi Bangura has stated the shortcomings of Sierra Leone’s past mining frameworks, noting that government revenues were largely limited to taxes and royalties.
He revealed that mineral exports generated nearly $4 billion between 2018 and 2024, yet only 5% of that value entered the national treasury. In 2024 alone, $1.5 billion worth of exports yielded just $16 million in government revenue; an arrangement he described as unsustainable and detrimental to national development.
To address these challenges, the government has introduced a more robust participation framework under the Mines and Mineral Development Act 2022. The law guarantees the government a 10% free carriage undiluted interest in all large-scale mining projects and allows up to a 35% equity stake in joint ventures. To implement this system, the Sierra Leone Mines and Mineral Development and Management Corporation (SLMMDC) was established, supported by the Mineral Wealth Fund (MWF), a government-owned vehicle ensuring mining operations remain financially independent of the national budget.
The new framework is being put into practice with the signing of landmark Land Lease Agreements for the Kasafoni Iron Ore Deposits in Tonkolili and Koinadugu Districts. A high-level government delegation, led by Minister Bangura, visited the chiefdoms of Diang, Sambaia, and Dansogoia to formalize the agreements with local landowners. Deputy Minister of Information and Civic Education, Bocakarie Abdel-Aziz Bawoh, confirmed that the SLMMDC will manage the concessions, citing successful models in Namibia, Botswana, Ghana, and Nigeria.
Minister Bangura emphasized that the Kasafoni deposits have been identified as strategic national assets allocated to the SLMMDC and the Mineral Wealth Fund. “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.
By Mohamed Kamara
