INVESTING IN SIERRA LEONE Mineral Resources Julius Mattai

INVESTING IN SIERRA LEONE Mineral Resources Julius Mattai, Director General, National Minerals Agency June 2019 UK – SL Trade and Investment Conference

Sierra Leone’s known mineral resources Rutile Gold Ilmenite Diamond Bauxite Zircon Iron Ore Columbite-Tantalite (coltan) 2

Nationwide Airborne Geophysical Survey of Sierra Leone World Bank’s Extractive Industry Technical Assistance Project Phase 2 (EITAP 2) has provided budgetary support to carry out a Nationwide Airborne Geophysical Survey to enhance general knowledge of Sierra Leone’s mineral potential Nationwide Airborne Aeromagnetic & Radiometric Surveys. Followed by Airborne Electromagnetic • Line Spacing: 150 meters; Tie line spacing: 1, 500 meters; Terrain Clearance: 50 meters (agl); Minimum line length: 3 kilometres • Time frame: Started in January 2019. Break on June 2019. Restart in October 2019. Completion in May 2020 • Survey flown by Xcalibur Airborne Geophysics • Data Quality Control by Reid Geophysics • One of the best nationwide geophysical surveys in the World Completed: 75% 3

Sierra Leone’s potential mineral resources Base Metals & Elements Chromite Molybdenum Lignite Platinum Tin Graphite Nickel Manganese Dimension Stone Copper Lead Granite Gravel Semi-precious Stones 4

Nature of mining investments Mining is capital intensive, high-risk and long-lived business, with significant investment in exploration and development, mostly sourced from the private sector Why has Sierra Leone's mining potential not been fulfilled in the past? Commodity price volatility, underdeveloped infrastructure, power supply constraints, lack of local development, political instability and an investment climate perceived as very weak Inve stor “Fly-By-Night” Investors 5

Mineral rights – Licensing and administration Reconnaissance Licences =0 Exploration Licences = 62 Large-scale Mining Licences = 12 Cancellations of Licences: 41 (July 2018) 25 (April 2019) Small-scale Mining Licences = 2 Artisanal Mining Licences = 1, 170 Web-based Mining Cadastre Administration System (MCAS) provides information on license holders, coordinates, application dates, duration of licence and fiscal information 6

Status of Mining Companies in Sierra Leone Tonkolili Iron Ore Marampa Iron Ore Sula North Gold/Iron-Ore SL Mining Iron Ore Northern Mining Iron Ore CKH Mining Sierramin Bauxite Iron Ore Boroma Ltd Diamond Mass Energy Iron Ore Koidu Ltd Dayu Mining Ltd Diamond MEYA Diamond Nimini Mining Sierra Rutile/Iluka Resources Rutile Sierra Minerals Holding Ltd Bauxite Gold Algom Resources Sierra Diamonds Diamond Southern Mining Iron Ore Gold

Total mineral exports in 2018 Artisanal Diamonds $ 65, 429, 984 181, 507 carats Revenues: $ 2. 1 Million Industrial Diamonds Rutile Iron Ore $ 13, 149, 241 968, 585 tonnes R: $ 9. 4 Million $ 99, 997, 508 130, 751 tonnes R: $18. 6 Million $ 91, 427, 007 559, 627 carats R: $12. 4 Million Gold $ 5, 242, 205 135 kg R: $ 595, 960 Bauxite Coltan $ 64, 060, 326 1, 822, 123 tonnes R: $ 7. 6 Million $ 4, 425, 097. 95 423 tonnes R: $ 130, 000 8

Contribution of the mineral sector to the economy The minerals sector has been the backbone of Sierra Leone’s economy since 1930’s Contribution of Mining Revenue to Total National Revenue Authority (NRA) Revenue (billions of Leones) Mining Revenue as % of Total NRA Revenue 2013 2014 2015 2016 2017 2018 440 386 345 315 239 445 21% 18% 11% 10% 6% 5% 4. 3% Source: NRA Mining Sector as % of GDP 23% 24. 5% 27. 3% 4. 2% Source: Statistics SL 9

Roadmap for improving investment in the mining sector lth ea W To identify low-cost/low-hurdle actions to be implemented by the Ministry of Mines & Mineral Resources, National Minerals Agency, the mining industry and other stakeholders that can start to build the mining revival and create a positive narrative to drive increased investment ea Cr n Roadmap to be implemented through the Extractive Value Chain Award of Contracts and Licenses Regulation and Monitoring of Operations Collection of Taxes and Royalties Revenue Distribution and Management Implementation of Sustainable Development Policies and Projects Export Br o Su ad-b s a D t e ve aina sed b lo Improving policy implementation le p m en t Improving enforcement of existing laws and regulations tio To enhance inputs, processes, outputs, outcomes, impacts and their linkages with the objectives of Sierra Leone’s Medium-term National Development Plan (2013 -2019) for diversification from mining

Improving legal & regulatory frameworks Mines and Minerals Act 2009 National Minerals Agency (NMA) Established the Mines and Minerals Operational Act 2012 Minerals Advisory Board (MAB) Established the Regulations 2013 NMA Board

“On this 58 th anniversary of our independence, I want us to each reflect deeply and ask ourselves as individuals and collectively as a nation what we have done to make our country a land worth living in “ HE President Julius Bio 27 April 2019 THANK YOU FOR YOUR ATTENTION