KEY MINISTRY ACTIVITIES

Legal and Regulatory Reform
The Ministry is reviewing proposals of the Law Reform Commission to reform the legal and regulatory framework for the minerals sector. The starting point of this work has been LRC efforts to draft a new Consolidated Mines and Minerals Act which will incorporate underground mining rules and regulations, taxation and fee collection systems, appropriate and effective health and safety, community and environmental protection provisions, and adequate legal measures to resolve disputes.

The Ministry is also considering of a range of new mining regulations to strengthen the enabling environment for mining activity. This will include regulations governing:

• artisanal mining;

• trading of precious minerals;

• management of mineral sector revenue; and

• exploration and prospecting licensing.

Other, more technical, regulations that have been identified and will be developed over the next six months include: (i) underground mining; (ii) environmental management; and (iii) mine health and safety.

Review of Mining Agreements
Government is undertaking a review of all existing industrial mining agreements and leases. The main objective of the review is to ensure that the people of Sierra Leone derive optimum benefit from the exploitation of the country’s mineral resources. Key issues being addressed as part of this review include:

• Infrastructure development, including the contribution of mining companies;

• Fiscal regime, including taxes, royalties, and customs duties;

• Public/private partnerships, based on an equity participation by Government in the operations of mines;

• Social and environmental issues, including company efforts to address community needs and impacts from mining.

Institutional Reform
In line with Government’s civil service reform initiative and its interests to improve the management of the minerals sector, the Ministry is currently considering a number of institutional reform options. This includes the possibility of establishing a Government Agency to manage the issuance of licences and capacitating the Geological Survey Division to better service the private sector. The Ministry is also investigating the possibility of establishing a Minerals House to bring together the various functions of Government associated with the administration of the sector, as well as private sector diamond and gold traders.