CIVIL SOCIETY NETWORK (CSN) KONO DISTRICT Position Paper

Kono in Dire Need of Road- Government to Act Now

ivil Society Network (CSN), an umbrella body of over fifteen civil society organizations in Kono District, appreciates government's effort to improve the road network in the country as provided for in the second Poverty Reduction Strategy Paper (PRSP II) commonly referred to as the Agenda for Change. CSN also appreciates government's decision as provided for in the Agenda for Change to rehabilitate the MatotokaKono Highway and the extra allocation to rehabilitate 20 Kilometre road with the Koidu township. We are quite convinced that government indeed sets its priorities right for the development of the nation as improved road network is a major factor that contributes to the reduction of poverty and the enhancement of socio-economic development of any nation. CSN is however gravely concerned about the effective and efficient implementation of this very laudable vision. The present state of the Matotoka Kono Highway and the rehabilitation work on the Koidu township road has posed very serious problems to both residents and people travelling in and out of Kono District. Starting with the construction of the 20 kilometre road project that started in April 2011, we are concerned about the transfer of contract from one contractor to another as there was almost physical confrontation between Cymain (the first contractor) and Well Group that took over. Civil Society believes that there are laid down procedures for the awarding and withdrawal of contract which does not warrant such an ugly situation. We are of the opinion that those procedures were not respected. Civil Society is confused as to who is not fulfilling its own side of the agreement; whether the contractor or the Government

MININGWATCH
SIERRA LEONE
NOT FOR SALE
VOLUME THREE

of Sierra Leone as the construction work came to a standstill at some point due to funding constraints. Even though the work has resumed, we are still worried about the quality and timely completion of the work which is haphazard and painfully slow. The effects are high risk of accidents and

risks of accident, increased cost of essential goods and services including the Free Health Care. Recommendations: In view of above, Civil Society recommends that: Government makes a public statement on the contractual agreement with the Contractor, Well Group on the Koidu township road rehabilitation. Government closely monitors the rehabilitation work on the Koidu township road to ensure quality and timely completion of the project. Well Group to concentrate on few roads at a time instead of digging up so many roads at a time. Government to intensify the on-

MAY 2012

Koinadugu District
Council Concerned
Page 2

Over Reckless Mining

"Rutile Is Not BeneficiChief al To Us says Section

Mines Minister Launches
The Cadastre And Online
Repository System
health hazards as the township is littered with dug-up and almost abandoned drainages and exposed iron rods. With regards the Matotoka Kono highway, in as much as we commend government's effort and pronouncement for the commencement of the rehabilitation of the Matotoka Kono highway in April, 2012, we are equally disturbed about the present state of the road leading to the district which significantly contributes to the economy of the nation. From July to date, the road is almost impassable to vehicular traffic. This situation has led to scarcity of commercial vehicles and exorbitant transport cost from the few that ply the route. Other related effects are high going maintenance work on the Matotoka Kono Highway to ease the present burden on residents and travelers before the commencement of the proposed rehabilitation.

But How Effectively Will It Work???

Status report On African

Minerals

This publication is supported by Promoting Agriculture Governance and the Environment (PAGE) through Network Movement for Justice and Development (NMJD)

Operations
Produced by the Association of Journalists on Mining and Extractives in collaboration with Network Movement for Justice and Development. Editor-In-Chief: Theophililus S. Gbenda - 232 76 982 623

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AJME Magazine

May 2012

reetings! The Association of Journalists on Mining and Extractives (AJME) is pleased to bring you yet another edition of its newsletter called 'Mining Watch Sierra Leone'. We are pleased with the progress made thus far, and we wish to announce that we have moved from a mere newsletter to a full blown magazine. Mining Watch Sierra Leone is designed to dig out facts relating to the country's huge but unprofitable mineral wealth, and to publicize our findings for the attention of the general public and more especially our duty bearers whose handling of such wealth has not been impressive from the onset. Sierra Leone, a small West African country populated by less than six million people, is a resource-rich country that is yet to make any meaningful headway in translating such an exceptional blessing into the reality it was meant to be. This has left the country entrapped in the resource curse syndrome, and by all indications, there seem to be no hope for a positive change in the near future. Rather than emphasizing on ensuring beneficiation from the mining and extractive industry, the former government and the current one have simply maintained the status quo, and the situation is even worse now with the granting of undue concessions to mining companies coming to 'invest' in the sector. Could you imagine a country that is donor dependent, with a substantial portion of its national budget being subsidized from outside, being so generous to multimillion dollars corporations to an extent of granting them tax breaks amounting to millions of dollars. The 2009 Mines and Minerals Act, a useful document if only implemented to the letter, was designed to change the country's fortune when it comes to the exploitation of its natural resources. Sadly though, the usefulness of the said act has long been rendered questionable, as there have been cases in which its provisions have been openly violated at the behest of mining companies. In fact, rumours are now doing the round that the much drummed about act has been withdrawn for reexamination. While it goes without saying that the implementation of the Mines and Minerals Act of 2009 has been seriously compromised, the government of His Excellency Dr. Ernest Bai Koroma has entered into yet a new phase of resource mismanagement, by rushing with a petroleum bill to the house of parliament with a certificate of emergency, again at

From The Editors Desk

People's right to demand returns from extraction of non-renewable resources

it good enough for the citizens of Sierra Leone? 2010 number from NRA clearly states that the mining revenue that year amounted to 1.4% of GDP. In IBIS' view, it is not enough. Why not? Because the extractive industries is exactly such an industry that preys on non-renewable natural resources that does not belong to them. Job creation is of course a result, as it is the result of any business as it the only means in which it can function. But what comes in return for the non-renewable raw material? What is the raw input? Providing jobs is not sound terms for foreign investments into extractives of natural resources from the point of view of IBIS. It has to be coupled with a substantial amount of revenue which can be used to develop the countries who own these minerals. We seek to influence as much as possible on a global level that regulations are changed for higher transparency, strike down upon tax haven structures which is also the structures of the largest mining companies in Sierra Leone. This we do to ensure that money and profits are not channelled out of the country without being declared. On a national level, we seek to influence to increase the revenue intake and through civil society advocate for higher yields as a return for the non-renewable resource. On a local level, the level of development seen and experienced as a result of the mining operations is pivotal. If people who live side by side with mining activities do not feel that this is bringing anything in return, we are also loosing on the global and national level. This means practically to ensure higher transparency and compliance on the measurements in place for local development, such as the Community Development Agreements required by law, the DACDF monies, and strengthening communities to bring these issues to the agenda in their interfaces with the authorities and the mining companies. It is the citizens' right to ask for more. But we need the foreign investments! Mining operations are extremely costly. There is no doubt about that and it is at times fair for the mining company to invest in their own operation rather than declaring profits. But we need to ask for full transparency concerning this, keeping in mind that the extractive industries is traditionally one of the

From page 10

the advantage of oil exploration companies flooding in to drill for our oil. It is worthy to note that with all the rush, doubts exist as to whether there a National Petroleum Policy in place. This in itself is a major cause for concern because it was expected that the preference should have been given to the much delayed finalization of the National Mineral Policy so as to inform the process of formulating a Petroleum Bill, rather than the other way round. What is particularly worrying is the fact that while no concrete efforts have been made to correct the wrongs that have paved the way for the massive pilfering or stealing of the country's natural resources since the 1930's, a new frontier for another round of exploitation has been sanctioned with the mad rush into the oil business. Just as mining contracts signed by the past and present governments to a large extent favour 'investors', so too is the rushed petroleum bill in favour of current and potential 'investors' in the oil sector. Drawing examples from oil producing countries such as Nigeria and Sudan where there have been spate of insurgencies, it is but obvious that if conscious efforts are not made by the policy makers to effectively manage the country's oil resource and ensure beneficiation, another round of bloodbath could not be avoided in the long run. In a recent research conducted by the Association of Journalists on Mining and Extractives (AJME), it came out clearly that the country currently has an extremely weak institutional and governance framework that inhibits policy makers' ability to adequately address the potentially negative effects of natural resource wealth. This is why we are yet to see any sense in rushing a petroleum bill to parliament. Is anybody running after our policy makers or are they under pressure to sell off the country? AJME recognizes the fact that some of the woes associated with the exploitation of the country's natural resources include government's unwillingness to apply due diligence and transparency in its dealings with present and potential 'investors' and the lack of respect for the views of the ordinary citizenry represented mostly by the civil society body in the change or reform process. Our firm position is that it is about time that the country makes the most from its already largely depleted mineral wealth,

Chairman Theophilus S. Gbenda

or there is no need to continue mining. Till date, what the country is getting from mining is a mere pittance as compared to what is being taken away by so-called investors. In 2010 for instance, the country exported minerals worth USD 199.5 million, amounting to 60% of exports. That same year, the contribution to state revenue from the mining sector was calculated at USD 32 million, amounting to only 1.4 per cent of the country's Gross Domestic Product (GDP) and barely 11% of domestic revenue. This includes payee taxes from salaries to employees; without which, revenue from mining would have been merely eight per cent of domestic revenue. This is nothing in actual terms, and the major reasons responsible for this unacceptable situation are weak laws, lack of effective monitoring and the granting of excessive tax concessions and other special benefits to mining companies. For example, companies are not only exempted from paying income and excise duties, but also from paying the Goods and Services Tax (GST), which every Sierra Leonean pay on every commodity they buy except food, and which many believe is responsible for the high cost of living the country is currently experiencing. This paints a picture of a perpetual street beggar wanting to give away his last and only penny to a multi-billionaire. We hold the view that Sierra Leone as a country will continue to be donor dependent despite its huge mineral wealth, if it fails to lay emphasis on local revenue generation. One way local revenue generation efforts could be boosted is by ensuring strict adherence to tax obligations especially by business or profit related ventures including the operations of mining and extractive companies. To this note, we call on the Government of Sierra Leone to immediately reverse all tax concessions granted to mining companies and do hereby demand that more seriousness is applied in the management of the country's natural resources. This is against the backdrop that the resources belong to the people of Sierra Leone and should therefore be exploited to their maximum benefit. Anything short of that is a disservice to the nation, for which posterity will take no pleas.

most corrupt and intransparent sectors of all. But if we take for a moment the company perspective, we must accept that mining operations are extremely costly and that is a crucial argument when they negotiate for tax exemptions for instance with the Government of Sierra Leone. But the whole range of incentives that is provided is often not soundly substantiated or necessary. As was stated by one Revenue Watch Institute associate recently: Show me a company that left due to a government's change of fiscal

regime? The natural resources will stay in the ground if not exploited, they don't need to be sold off to the first and worst offer. Investments are extremely important to a country like Sierra Leone, but they must be challenged in their effect. Prosperity doesn't always flow downwards prominent economist Noreena Hertz has stated, and we have to ask what power who yields? And is that really how we want it to be? www.ibiswestafrica.com / www.ibis.dk

But if we take for a moment the company perspective, we must accept that mining operations are extremely costly and that is a crucial argument when they negotiate for tax exemptions for instance with the Government of Sierra Leone. Kimberley Process Civil Society Coalition Brussels Meeting, November 17-19, 2011 Communiqu
standardized and graduated penalties as well as a technical support mechanism to remedy technical problems of compliance. The KP needs to examine similar international regulatory systems such as those governing financial and sporting bodies. The KP Adhoc Committee on Reform must develop such a system for adoption at the 2012 Plenary. The CS coalition will work with the Adhoc Committee to advance this issue. Development Diamonds have not fulfilled their development potential in many producer countries. The KP should use its good offices to create a wider forum among multilateral, bilateral and nongovernmental development organisations to promote the development agenda in the diamond industry. We will work with the KP and DDI to convene a major development

From page 26

conference in connection with the 2012 Plenary in order to inform the wider development community about the challenges and opportunities that exist for promoting diamond related development. This will build on the one day round table discussion in Windhoek in June 2009. 6. CLEANER DIAMOND INITIATIVE: Until there are clear indications of serious KP reform, we intend to pursue with immediate effect with interested governments and industry a parallel diamond regulatory body that will include all of the existing KP standards and those included in the many reform proposals that have been discussed over the years. This initiative aims to create a higher level of certification for consumers - a "Triple A Rating" that will build confidence and greater value in the diamonds of those countries and companies that participate.

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Kimberley Process Civil Society Coalition Brussels Meeting, November 17-19, 2011 Communiqu
e welcome the Kimberley Process initiative agreed to at the Kinshasa Plenary (October 31-November 3) to study possible reforms to the overall diamond regulatory system. We have seen efforts to reform the KP in the past, however, and too often, badly needed reforms have been blocked by political, commercial and vested interests. We will work with the reform process in the year ahead, but we expect to see tangible results by the end of 2012, with clear indicators of success at the mid-year Intersessional meeting. Taking note of our absence at the Kinshasa Plenary, we are making our full engagement with the KP dependent on the adoption of substantial and sufficient reforms such as those listed herein. The Kimberley Process Civil Society Coalition notes the decisions made by the KP at the Kinshasa Plenary with regard to Zimbabwe. These decisions were made in the absence of civil society and our concerns and objections have been made known. The Civil Society Coalition will work with the agreement to ensure the best outcomes possible. We also intend to work on parallel initiatives until it becomes clear that the KP is willing and able to address fundamental concerns about its operation. We recognize the KP as a necessary, yet insufficient, means through which to regulate the international trade of rough diamonds, particularly those coming from high risk and conflict prone areas. The KP Civil Society Coalition believes that the following recommendations and outcomes are a necessary prerequisite to an effective, credible, clean and responsibly managed diamond supply chain: 1. DEFINITIONS: Human Rights The current definition of conflict diamond is outdated and does not address the way in which violence in the diamond producing areas has evolved in the decade since the Kimberley Process was formed a decade ago. The KP must include respect for human

rights in its minimum standards for all Participants. By this we mean the provision and administration of security measures in Participants' diamond mining sectors should be consistent with international human rights law. As a means of addressing the potential for smuggling and other concerns relating to KP compliance in artisanal diamond mining, Participants should further provide and administer security standards and measures consistent with international human rights law with respect to diamond miners and members of local communities. Until the KP has adopted such clear human rights provisions, we will work with national, regional and international human rights organisations, including the UN High Commissioner for Human Rights and other UN organs and human rights mechanisms to inform them of the KP's unwillingness and inability to include human rights as a basic standard in the diamond industry. 2. GOVERNMENTS: Independent Monitoring The KP peer review mechanism has considerable value but it also has limitations. The civil society coalition believes that the KPCS would greatly benefit from additional independent oversight. As a means of informing the KP on this issue, we recommend a preliminary, independent, professional review of reviews to examine: ? the quality of the review visits and missions that have already been done; ? action taken on the recommendations; ? follow-up by the KP. This should be agreed at the Intersessional Meeting with a target completion date by the 2012 Plenary. 3. INDUSTRY: Inclusion of the Cutting and Polishing Industry in KP Oversight and Statistics The exclusion of the cutting and polishing industry from the KP system creates a vacuum between the production and trading system and retailers and consumers. Until the cutting and polishing industry is included in KPCS oversight, the Civil Society Coalition will work to inform retailers and consumers that there can be no confidence in the KP certification system. Clearer Responsibilities for Industry throughout the Supply Chain

The Civil Society Coalition will work with industry, the KP, and the OECD to create a supplement on diamonds as an integral part of the OECD Due Diligence Guidance for the Responsible Supply Chains of Minerals from Conflict-Affected and High-RiskAreas. 4. CIVILSOCIETY: The Role of Civil Society Organizations We insist that the KP adopt clear language in support of the role of civil society organisations in the monitoring of their country's KPCS compliance, that member states respect the role of civil society organisations in this process and accord them full protection under the law. The civil society coalition will work with the incoming Chair to draft appropriate language for adoption at Plenary 2012. 5. KIMBERLEY PROCESS: Decision Making Until the KP has adopted an effective decision making policy, and as long as it retains its dysfunctional consensus decision making arrangement, the CS coalition insists that consensus on any decision must include the agreement of the CS coalition and the World Diamond Council. Without the involvement of all stakeholders of this tripartite initiative, and without the agreement of observers on issues before the KP, there will be no consensus Transparency Transparency was a founding KP principle but in practice it has proven very elusive. As a minimum, we believe that all KP monitoring reports, participants' annual reports, and statistics should be made public. Until this happens we will work with other organisations, including EITI and Transparency International to create a KPTransparency Index showing which KP participants make these reports publicly available. Administrative Support Mechanism The KP needs a permanent, small, flexible, professional, technical support mechanism to support the work of the Chair and the KP Working Groups, and to provide analysis, archiving, and dialogue facilities. The need for this has become a matter of urgency and details must be agreed at KP Intersessional in June and operationalized by the end of 2012. Wider and Better Compliance Any regulatory system needs a system of
Continued page 27

By AJME Team The Extractive Industries Transparency Initiative (EITI) was launched at a world summit for sustainable development in Johannesburg, SouthAfrica, in 2002. The main thrust of the initiative is to promote, strengthen and deepen transparency and accountability in the extractive sector through regular reconciliation and publication of payments made by companies and revenues received by government entities. Sierra Leone acceded to the EITI In 2006 and became a Candidate Country in 2006. In 2010, Sierra Leone published both the reconciliation and validation reports, but is yet to become an EITI Complaint Country like Liberia, Ghana and Nigeria to name a few, due to unmet indicators. In the march towards EITI compliance, the country has taken the following steps: a) Appointed a new Champion in the person of Dr. Kaifala Marah, the Chief of Staff of the Republic of Sierra Leone b) Launched in July 2011 a two year work plan that has been approved by the Multi Stakeholder Group (MSG) c) Established a Sierra Leone Extractive Industries Transparency Initiative (SLEITI) secretariat at No. 29 Dundas Street in Freetown and appointed a National Coordinator in the person of Kenie Lamin d) Drafted a SLEITI bill that is soon to be passed into law e) Recruitment of staff to run the SLEITI secretariat. Some of the major challenges facing the process of implementation include sustaining commitment from stakeholders (government, civil society, mining companies and development partners), ensuring that all Ministry, Departments and Agencies (MDAs) and companies report, disclosing all material payments, ensuring data reliability and disseminating reports for public debate. Sierra Leone has so far produced the 2006-2007 report and is expected to produce the report for 2008, 2009 and 2010 in December 2012, or face the risk of not being validated in order to become a full fledge EITI Complaint

Status of EITI implementation in Sierra Leone

Dr. Kaifala Marah, Ibrahim Sorie Kamara and Abu Brima signing the MoU

Country. By way of an advisory opinion, the Anti Corruption Commission (ACC) has unearthed serious discrepancies between payments made by mining companies and revenues acknowledged by government. Following a data reconciliation exercise, the findings show that unresolved discrepancies in 2006 amounted to $220,155 (Le 515,779,256) and in 2007 $235,151 (Le 115,829,908). These discrepancies are currently the subject of investigation, but preliminary postmortem points at government's failure to report revenues in their templates or the inability to substantiate payments reported by companies. Also, some companies were unable to provide adequate supporting documentation for amounts reported as payments to government entities. The discrepancies show quite clearly that the EITI is not yet fully embedded in Sierra Leone as in other countries. While the country works towards its second validation, it is worth noting that the Multi Stakeholder Group (MSG), whose role is critical if only to attain a candidate status, is currently malfunctioning and to a large extent sidelined. Of course the need to capacitate and fully operationalize the SLEITI secretariat so as to effectively handle the administrative affairs of the implementation process cannot be overemphasized. The present scope of the SLEITI is limited to extractive industries in gold, diamond, rutile and iron ore, but given the natural resource endowment of the country, plans are well advanced to include the budding oil sector, timber and marine resources. At a ceremony marking the launching of the SLEITI work plan and signing of a memorandum of understanding held on 20th July 2011 at State House in Freetown,

stakeholders from government, mining companies and the civil society demonstrated their commitment to ensuring the successful implementation of the process in the country. Representing the Government of Sierra Leone, the Chief of Staff, Dr. Kaifala Marah, who happens to be the new SLEITI Champion, said Sierra Leone is a country in a hurry to catch up adding that We have to meet international standard and apply best practice. He noted that the government is committed to the EITI process because as he puts it, We want to be able to be transparent and inclusive. Dr. Marah informed of plans to revamp the SLEITI website and that the process of legislating a special EITI law is in full gear as a draft bill is now in place. According to him, the government has asked the ACC to investigate the discrepancies earlier mentioned relating to what the companies say they pay and what government acknowledges. He called for the cooperation of stakeholders involved in the process, pointing out that We do not win because we are a resource-rich nation. We win when all stakeholders are involved and when we use what we get from our resources to the benefit of the country and its citizenry. Dr. Marah furthered that his reputation is at stake and cannot afford to preside over a process that will end up not bearing the desired fruits. Speaking on behalf of mining companies operating in the country, Ibrahim Sorie Kamara of Koidu Holdings Limited (KHL) registered their commitment to the EITI, saying, It exonerates us in lot of ways.

Continued page 25

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Status Report On African Minerals Operations

By Theophilus S. Gbenda and John Kamara Highlights: he road networks leading from Magburaka to Bumbuna and from Binkolo to Bumbuna, are in their worse especially during the rainy season, with scores of potholes caused by fleets of heavy duty mining related trucks and caterpillars plying the routes. Just few months ago, a fatal accident occurred along one of the routes leading to the mine site, leaving at least three mine workers dead and several others seriously injured. Employment still remains an issue, although so far a good number of jobs have been awarded. African Minerals has a couple of subsidiary companies working on contract with it. All companies in question are foreign-based and providing different services. Amongst the contracted companies so far are CCECC (Engineering/Construction), Hawk (Construction), Elite (Construction), BCM (Mining), Dawnus (Construction), ATS (Catering), EM Drilling (Drilling), Ansenco (Mineral Processing), WBHO (Train Line Construction) and BME (Blasting). AML, being a private profit making company, is not under any obligation whatsoever to award contracts through a competitive bidding process. The companies mentioned therefore were directly contracted and are covered by the terms of the agreement between AML and the Government of Sierra Leone (GoSL). Article 14 (a) for instance states that 'Subject to the terms of Article 19, for the duration of this Agreement, the GoSL shall exempt the Company and its nominated contractors from all duties and taxes in respect of imports of mining machinery, plant and equipment, infrastructure and consumable mining stores as defined in Schedule 3'. Some of the subsidiary companies mentioned are said to be racist. One such company is Hawk, which is on record of contracting

Training On Oil and Gas And The Role Of The Media Ends In Ghana
From page 19

mainly Whites. Machines such as excavators, bulldozers, rollers, front wheel loaders and graders to name a few, which could be driven by experienced local staff, are all being operated by Whites. The argument is that the said equipment are expensive and that leaving them in the hands of "poorly trained and ill-experienced Sierra Leoneans" will only expose them to early damage. The company also has on contract Whites for masonry and carpentry jobs. One worker on contract with the company says he gets Le 1,500 (One Thousand Five Hundred Leones) per hour and works from 7am-6pm. While some categories of workers are grumbling over low wages, others seem quite satisfied with what they are being paid. Those with direct employment with AML are getting fatter salaries as compared to those employed by the subsidiary companies. One local processing lab technician under direct employment with AML disclosed that he receives One Million Five Hundred Thousand Leones per month as remuneration. "I am very satisfied with that amount, considering how much other workers are getting", he said. %80 of those employed by the subsidiary companies get a basic salary of Le 250,000 (Two Hundred and Fifty Thousand Leones)

dishes. The so-called African Kitchen is meant for Sierra Leonean workers only. All the other nationals including employees from Ghana and other African countries are entitled to the goodies that the European Kitchen provides. Social factors In the Bumbuna general area, crowds of people could be seen roaming from one point to another. Many people have migrated to Bumbuna in search of job. Some job seekers came all the way from Bo in the south, Kono in the east and Kabala in the north. They however feel discriminated because they are considered as outsiders. This is against the backdrop that indigenes of the mining community are reportedly given preference when it comes to unskilled jobs. Ferengbeya, where the mining operations of AML are centered, is said to be sitting on top a variety of minerals including iron ore, gold, lead, zinc, metal and white mercury. In what could rather be termed as a cunning move, the company once known as Sierra Leone Diamond Company (SLDC), metamorphosed into African Minerals Limited (AML) so as to include other minerals in its mining expedition.

understanding the intricacies surrounding the sector, pointing out that governments in resource-rich countries prefer investing resource revenues on consumption to investing in productive areas so as to diversify their economies to withstand post-resource economic difficulties. The irresponsible management of natural resources is not limited to Sierra Leone alone. Other countries around the globe, and Africa in particular, are sharing the same

plight. Such countries, including Sierra Leone, are deemed to be victims of the resource curse syndrome. At the end of the two-week training, it was resolved that African governments need to do more in the area of transparency, that the civil society should take the challenge of monitoring and engaging stakeholders involved in the sector, that parliamentarians should ensure that they formulate laws that are people-friendly, while journalists are to put more effort in playing the watchdog role. The training included a field trip to a

mining community in the Tarkwa District in western Ghana and the Ashanti Gold mines, with the aim of enabling participants have first hand information of how it looks like in terms of mining operations and what the surrounding communities are getting back by way of benefit. Tarkwa is one of Ghana's major mining communities, hosting several of the country's gold mining companies. Tarkwa is faced with the paradox of plenty, with poverty seen all over the place. Only few people in the district are well-off, as in the case of Sierra Leone.

Africa resource curse syndrome What is responsible?

From page 8

Massive crowd in admiration of ALMs train

per month, with no housing allowance. Permanent local staff members of AML are entitled to an annual medical allowance of Le 5,000,000 (Five Million Leones). Entitled workers have to turn up for full treatment covering the estimated cost, because if they don't, cash refund equivalent is not an option. Discrimination It goes without saying that local staff are discriminated against in the mines. A typical example is the prevalent of two different kinds of kitchens. The one is named African Kitchen that serves typical Sierra Leonean dishes, while the other is named European Kitchen that serves exclusive European, Asian and other western or continental According to the 99 years infrastructural agreement between the AML and the GoSL and based on the commitment of AML by way of its corporate social responsibility, locals will have access to the train service (free of cost) to move their agricultural products from point A to B as the case may be. This possibility is now redundant, as it has come out clearly that the trains are for exclusive official use. Because no passenger is allowed, one could better refer to the so-called trains as carriages.
CONTINUED PAGE 5

A view of Bumbuna town

accountable and I am emphasizing this point because I believe the key role of the civil society is to demand transparency and accountability from governments, and at the same time tracking revenues streaming from the exploitation of natural resources. Parliaments in Africa also have a role to play because of their oversight responsibilities that enable them to demand transparency. The extractive sector is the most corrupt, with very big players involved. This is where the fight against corruption is most needed. Natural resources are said to be oneof assets, and therefore investment into them should be sustainable and pro-poor growth should be the focus of their exploitation. In the case of Sierra Leone, diamonds were considered the most preciuous, which was why the diamondeferous district of Kono in the east was dubbed the bread basket of the country. Iron ore, gold, bauxite and rutile are also precious and important because of their strategic natures. Just recently, oil came into the picture. With all these resources, the question many people have asked is what does the country stands to benefit. Already, some of these resources have been depleted considerably, with nothing to show in comparative terms. What are the development outcomes for Sierra Leone from the mining

industry? This is amongst the many questions asked today. But who is prepared to proffer an answer? The introduction of the Extractive Industries Transparency Initiative (EITI) is no doubt a blessing in disguise for the country, as it reduced smuggling, which was a big issue, and also increased government's intake from mining. The reviewing of existing mining contracts which is now in progress, is no doubt a step in the right direction. Thanks to pressure plied by civil society organizations advocating for just mining in the country. The review process however seems to be shrouded in deep secrecy. Civil society activist, Abu Brima of the Network Movement for Justice and

Development (NMJD), in a recent engagement referred to the trend of mining in the country as catastrophic, stating that The policies, regulations and fiscal regime are all skewed towards the advantage of so-called investors, with a number of illegal concessions and tax holidays given to companies. This is not helpful to the country, considering the damages caused to the environment as a result of mining activities. With this being the state of affairs and given that mining is contributing only 1.4 per cent of the GDP, civil society activists want a moratorium on mining activities so that the sector could be properly regulated to ensure maximum beneficiation, before the country starts again with such activities.

The reviewing of existing mining contracts which is now in progress, is no doubt a step in the right direction. Thanks to pressure plied by civil society organizations advocating for just mining in the country.

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AJME Magazine

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Status Report On African Minerals Operations

From page 4&5

Another protest action that occurred in the Bumbuna general area sometime last year was over the right to food. Apparently, the indigenes were not informed or educated about the scope of the concession granted to AML. They were therefore taken by surprise when one morning they woke up and saw their plantations being bulldozed by AML heavy duty machines, without due reference to them. As a result, the whole community including children, elderly men and women and youths went on the rampage to demonstrate their anger at the company's blatant move to undermine their right to food. The police intervened with very heavy hand to put off the strike action, physically manhandling the clearly provoked indigenes and apprehending

over one hundred of them. Few were released after few hours, while the bulk of them were detained for over a month in police cell and released afterwards without bail or charge. The heavy handedness with which the police came down on the people of Kemedugu and its surroundings for staging the said protest has implanted permanent fear in the minds of the people. The fear is such that they are now afraid to rise up even in the face of forceful relocation from their ancestral homes. Their current frame of mind is that if they dare do anything to hamper the operations of the company, it is the government directly that they would be challenging. The fact that AML did everything possible to complete the railway line in record time so as to fast track the process of

environmental impact, including: vegetation; degradation of forest and land; water supplies (contamination as well as availability); siltation of rivers and creeks; and social and economic costs associated with the movement of communities due to destruction of cultivable land. The government of Sierra Leone would like to continue seeing the mining and exportation of diamonds and gold, but is yet to develop enforceable policies to address environmental degradation and cannot afford to invest any revenue into environmental conservation or education. It is up to the government to develop comprehensive guidelines for mining activities taking into consideration environmental protection and the health and safety of the general populace. Mining companies whose activities are adversely affecting the communities in which they are excavating and digging for diamonds are yet to fully commit themselves to according victims of their operations the respect and attention required. The operations of mining companies often result in degradation of the vast expanse of land exploited, thereby warranting the risk of flooding of surrounding villages

Sierra Leone Mining And Environment From page 20

from dredging ponds, siltation in tidal creeks and dislocation of several villages. Some villagers, including the elders, are expressing dissatisfaction at the displacement, complaining that they are unable to pursue agricultural activities in their new settlements. The communities are not consulted from the onset or in the resettlement process. Environmentalists and health organizations who would like to see the government take a more active role in protecting the environment and enforcing such a stiff law against defaulters, remain unimpressed with the current environmental safety measures applied by the government. At present there is a lack of capacity on the part of the Government to intervene in some areas of environmental concern. The Government has entered into new agreements with large-scale mining companies requiring them to develop comprehensive environmental action plans for mitigation of environmental degradation. Unfortunately, while showing a high level of commitment, these agreements lack in depth. Additionally, in respect to the smallscale mining activities, the system of fees in the artisanal mining do not take into account the extensive and severe land degradation of the mined-out areas.

transporting the iron ore and possibly other minerals, without making any real effort to fix the road networks its officials and heavy duty trucks are plying on a daily basis to and from the mines, sends a clear signal that the company is particularly interested in the minerals and not so much about what the country and its people benefit. Meanwhile, the proposed construction of the so-called 900 Man Camp in the hill top of Bumbuna has caused the pollution of the township's traditional water source that has served the people from the 1970s till date. This has brought grave suffering on the people, as most of them now have to resort to buying spring or packet water for drinking. Assurances of addressing the water problem in the township remain unfulfilled, thereby leaving the people prone to a variety of short and long term side effects and ailments. News coming from the hill top where the 900 Man Camp is to be situated is far from being encouraging. Accordingly, an helicopter comes there frequently. Whenever the helicopter is destined for the camp, the workers would be told to go into their offices and keep themselves busy. Frank Timis is coming, they'll be told. No worker is allowed to go anywhere close to the helicopter. It is an exclusive VIP affair. Some concerned workers disclose that anytime the helicopter goes there, it leaves with something; possibly raw gold or some other minerals. Apart from the suspicious helicopter, AML also operates fleets of sealed trucks that could be seen going up and down with escort. No one sees inside the trucks, and no one has bothered to ask. The suspicion is that those trucks might be carrying precious materials. While it was operating under the name Sierra Leone Diamond Company (SLDC) in Kono District, the company, with a prospecting licence, used to transport quantum of raw gravel from Tombodu to its laboratory in Bo. Hundreds of carats of diamonds were discovered in the process. Whatever became of those diamonds is an entirely different story, but evidences abound that the company did export the gems, though without an exporter's licence at the time. Meanwhile, AML is now producing quantum of precious iron ore courtesy of its Tonkolili project, and has already made several shipments abroad.

Status Report On African Minerals Operations

From page 4
The devastation caused on the environment courtesy of the railway line construction is such that a separate Environmental and Social Impact Assessment (ESIA) is needed if only to set up mitigating mechanisms necessary to protect the environment and safeguarding the rights of persons who are going to be directly affected as a result. DISLOCATION/RESETTLEMENT A number of fright-stricken indigenes have already been displaced from their ancestral homes and relocated five kilometres off Bumbuna town, at a place named Ferengbeya Two. Their houses have since been demolished to give way for the railway line to pass. Also demolished are schools (e.g. Baptist Primary School Ferengbeya) and such other structures standing in the way of the mapped out railway line. Those initially relocated were housed in makeshift panbody structures, which they rejected but were prevailed upon by government and their traditional authorities.
Off it goes

Polluted water running from a public tap

As an incentive, each of the resettled household was given the sum of Le 600,000 (Six Hundred Thousand Leones) as 'DisturbanceAllowance'. Each resettled household receives a bag of rice plus Le 50,000 (Fifty Thousand Leones) monthly; a measure taken to address the food needs of the affected households, since they no longer have land on which to do their usual traditional smallholder farming activities. The recipients, mostly jobless, consider the gesture to be ridiculously unsubstantial, given that they now have to buy everything from pepper to other items needed for their daily cooking. The company's website on www.africanminerals.com is completely silent on the issue of ResettlementAction Plan. The 'Young Boy' Chief of Ferengbeya, Nonkoh Sesay, who was awaiting relocation in September 2011 said, "We are powerless, and therefore don't have a choice". He went further to say "We are not happy about our plight, but we have nothing to do as it is the government that

has approved it". He said their greatest worry now is whether they will be provided with land to do their usual farming. He pointed at his massive plantation and shook his head for a while. According to him, their crops were ever since assessed, but compensation delayed. Meanwhile, Mr. Nonkoh Sesay said while awaiting relocation, strict orders was given to them not to embark on any farming activities. Adding to that is the fact that the river where they used to go on fishing is no longer accessible due to the passage of the almighty railway line. Migrants from other parts of the country, who had settled at Ferengbeya for decades and even built houses there, were compensated for their properties and asked to leave the township with immediate effect. The entire Ferengbeya area has been leased to AML for mining purpose, thereby putting the company in a strong position to order even the indigenes to vacate. Adverse social/economic effects and employment malpractices Because of the high population currently in the Bumbuna general area, prices of basic commodities have gone up unprecedentedly, prostitution in the once traditional community has taken a turn for the worse and house rent has gone up to between Le 35,000 (Thirty-Five Thousand Leones) and Le 50,000 (Fifty Thousand Leones) for a single room per month. The price of cookery has also gone up to Le 3,000 per plate and above. Before now, house rent was Le 5,000 (Five Thousand Leones) per room, and cookery Le 1,000 (One Thousand Leones) per plate. Most of those who have gained

employment with AML and its subsidiary companies confessed that they bribed their ways through. For instance, if you're fortunate to be employed by any of the subsidiary companies, you have to commit yourself to paying a specified amount of money either up-front or on a monthly basis, to the official that made your employment possible. If you're employed as a driver, the commission (bribe) to pay is Le 300,000 (Three Hundred Thousand Leones), and for a labourer job, the commission or bribe is Le 100,000 (One Hundred Thousand Leones). In the mines, workers are exposed to danger due to the lack of adequate protective gears. Jonathan Gibao Massaquoi, an AML employee, lost his left eye when the electric oven he was operating on site exploded. His situation was life threatening to say the least, and reports say had immediate treatment abroad been accorded him, he may not have lost the said eye. It was few

A distant view of the 900 Man Camp

months after the accident that the AML management decided to fly him to Ghana, for what could best be described as overdelayed treatment. Imagine that it was a socalled expatriate involved. He would have been flown out of the country almost immediately for advanced treatment. Tension, conflicts and violations It could be noted that strike actions have been common occurrences in the Bumbuna area since AML started operations there. The protests have centered mainly on employment issues, and recently, the protestation took a different dimension with AML workers staging a sit down strike to say enough is enough. The said protest action that was meant to be peaceful turned violent when armed police personnel started firing live rounds and teargas indiscriminately across the township, thereby killing one person and wounding eleven others. The workers protested over low wages, abuse, discrimination, the fact that they have no trade union representing them and also the fact that they have no job security.

AML Railway Line

Continued page 24

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Oil Sector Report By AJME

Executive Summary n September 2009 the US independent oil firm Anadarko announced the discovery of a hydrocarbon system off the Sierra Leonean coast. The company operates the Venus B-1 exploration well in its offshore block SL6/07 on behalf of its partners Woodside (Australia), Repsol YPF (Spain) and Tullow (UK/Ireland). The actual size of the find is unknown as appraisal is not expected to be completed until 2011. Current estimates are tenuous at best, extrapolating from the Jubilee find in Ghana some have hinted that the find may be as high as 250m boe. If these numbers were to be confirmed, this would still make Sierra Leone a comparatively small producer: Nigeria's proved reserves stand at 37.2bn barrel and those of Equatorial Guinea at 1.7bn. Estimates for Ghana's reserves still vary widely, but the country is thought to possess about 1bn barrels of oil. Petroleum exploration and production will become a major contributor to domestic revenue mobilization and provide development financing opportunities that are likely much greater than those of the current mining sector. Given the lack of information on the amount of recoverable reserves, future oil prices, as well as companies' capital and operating expenditures robust estimates regarding the potential tax revenues cannot be given, but a vague and conservative approximation suggests that revenues would amount to no less than 100 million USD per year. The current legislative framework is set by the Petroleum Exploration and Production Act of 2001. Beyond that, the Income Tax Act of 2000 and subsequent amendments govern taxation in the sector. Individual contracts with oil companies are based on a Model Petroleum Agreement, which in turn is based on the Petroleum Act. The Petroleum Exploration and Production Act established a Petroleum Resources Unit (PRU), which serves as the regulatory authority for the sector. The PRU is part of the Office of the President. Its task is to monitor, regulate and facilitate oil and gas investments. It negotiates Petroleum Agreements with oil companies. Although the PRU has a rather technical brief, the Unit has significant decisionmaking/discretionary power. In a regional perspective, the fiscal terms i.e. tax and royalty rates, allowances and government participation - for the extraction of petroleum are relatively

investor-friendly. In that respect, the Governments' reputation however will be harmed by demarcation issues, which were until recently subject to an arbitration case with the International Chamber of Commerce (ICC). In 2009 the President established a task force, headed by the Secretary to the President, Emmanuel Osho Coker, to develop a new petroleum policy for Sierra Leone and restructure the Petroleum Resources. As consultations lacked in depth, awareness of the policy appears to be very limited beyond those who were directly engaged. The draft policy reflects concerns regarding good governance and prudent economic management of oil revenues for current and future generations of Sierra Leoneans. Its success however, will largely depend on the commitment and capacity to translate the policy into action. It seeks an overhaul of the existing institutional framework governing the sector. The draft policy also makes some provisions for the reform of the fiscal system. While the reform situation is still very fluid, there is a sense of urgency amongst some policy makers to put a new policy in place. However, not all stakeholders in the sector are adequately equipped to engage in the reform process and public discussion of Sierra Leone's petroleum policy. The Government is also planning to set up a National Oil Company. The degree of state participation sought and precise institutional set up have not been clarified yet. There needs to be a clear distinction between commercial and potential regulatory role of national oil companies. Furthermore, there is crucial potential of attracting international investors. Currently CSOs engagement with oil has been minimal. This is due to a certain asymmetry of information which causes CSOs to shy away from more active involvement. Since the announcement of the find in September 2009, a number of donors and NGOs have been involved - to varying degrees - in the petroleum governance and policy reform: The Revenue Watch Institute, Accra-based Africa Centre for Economic Transformation (acet), Norad's Oil for Development Programme as well as the International Senior Lawyers Project (ISLP), the World Bank, German Technical Cooperation (GTZ), the Commonwealth Secretariat and Norad. With the prospect of becoming an oil producer in the medium term, the

inclusion of revenue streams from petroleum production into reporting under Sierra Leone EITI will undoubtedly become an issue. At the moment discussions regarding the extension of SLEITI are reduced. There is less evidence of the creation of significant employment opportunities in the sector, as rather than direct employment, the growth of the petroleum sector can provide opportunities in ancillary sectors such as transport, catering hotels etc. One of the most prominent concerns of stakeholders is that Sierra Leone might fall victim to the so-called resource curse, commonly associated with slow growth and a deterioration of institutional quality. Sierra Leone's institutional capacity is particularly weak: Sierra Leone ranks very low on governance indicators measuring government effectiveness, corruption and public sector management, although some progress has been made. Even though the draft petroleum policy calls for the application of environmental standards in line with international practice, this lack of capacity endangers their enforcement. It can be noted however, that offshore production of petroleum is less disruptive to communities than on-shore operation of the extractive industries. Low government capacity and high levels of patronage and corruption increase the likelihood of oil wealth not being put to developmentoriented use. It will become a question of civic education as well as managing expectation while at the same time, it is just a matter of time before the issue of oil revenues will become politicised. Currently, the opposition SLPP is limiting itself to low-profile attacks on the Government for its secrecy regarding negotiations, a situation that is likely to change in the run-up to the 2012 elections. Dialogue with the GoSL and donor assistance should be focused on the following aspects: a) Strengthen stakeholders in government, as well as the Parliament and CSOs and also enable working-level officials to implement and enforce the policy b) Strengthen media organisations so as to adequately sensitise and educate a wider public on petroleum related issues c) Encourage the GoSL to reinforce a more participatory approach d) Support the efforts to enshrine fiscal transparency through means of inclusion into the SLEITI. e) Aid the GoSL to devise a private sector development strategy

CIVIL SOCIETY PLATFORM ON NATURAL RESOURCES AND ECONOMIC JUSTICE (NAREJ) -SIERRA LEONE

COMMUNIQUE ON NATURAL RESOURCE GOVERNANCE IN SIERRA LEONE - 30TH JANUARY 2012

t this National Conference on Development and Transformation in Sierra Leone, We, the member organizations of the Natural Resource and Economic Justice (NAREJ) Platform comprising all the major CSOs engaged on Solid Minerals, Petroleum, Forestry, Fisheries, Land and Water resources sectors acknowledge the initiative to pay attention to the cardinal role natural resources have in the development and transformation of the nation. The Natural Resource and Economic Justices Platform (NAREJ) wish to reaffirm here that most natural resources especially minerals are God given, not renewable, constitute public property. All citizens are therefore entitled to equitable enjoyment of the benefits that flow from their exploitation. Let us recall that Africa as a Continent is already advanced in putting mechanisms in place to optimize the exploitation of natural resources to underpin broad-based sustainable growth and socio-economic development (AMV 2009). In February 2009, at their Assembly, the AU Heads of State and government requested "member states to improve their mineral resource policies, establish appropriate institutional, legal and regulatory frameworks, and invest in human skills, research and development, and geological and geophysical data that are critical for efficient and effective management of mineral resources". We therefore want to see our natural resources utilized for the creation of wealth, sustainable development and productivity for the benefit of all Sierra Leoneans. Thus, Sierra Leone's natural resource endowment (land, marine, minerals, oil, forest, water) should be transformed into lasting benefits for the society in a sustainable and equitable manner, through the transparent, accountable, equitable and sustainable governance of these resources. For this to happen we need to see the exploitation and management of our natural resources through the lenses of the African Charter on Human and Peoples' Rights (ACHPR) with particular reference toArticle #21. KEY DEMANDS OF CIVIL SOCIETY IN THE MARCH FORWARD For our natural resources to serve as driver of our development and transformation,

we demand the following; " Put a Moratorium on new medium and large-scale corporate mining leases and licenses until the policies, laws, regulations are reviewed/developed to align with the African Mining Vision (AMV) and that reflect the demands and aspirations of the citizens. " The Governance of natural resources entails (1)recognition of public ownership of the resources; (2) community involvement in and transparent award of Licenses and Concessions; (3) Effective monitoring of the operations of licensees and concessionaires; (4) transparent reporting of payments and revenues; (5) equitable and accountable distribution of mineral revenues; (6) Sustainable development policies , etc " The urgent review of all corporate mining lease agreements that have shortchanged the country and peoples by going against the relevant laws e.g. MMR Act 2009, Income TaxAct etc. " Holding of separate national conference of Natural Resource governance to come up with "natural resource governance Charter" to inform all laws, Policies, regulations and mechanisms in the natural resource sector. " Clear vision of the role of natural resources in national development and key strategies for using natural resources for transforming and diversifying the national economy should be developed. " That all policies, laws, regulations and systems be aligned with the African mining vision, African Charter on human and peoples' Right and other relevant international Human Rights standards. " That a participatory, inclusive and transparent negotiating process for all agreements for the sector be regularised as a matter of urgency. " In line with the African Mining Vision and the African Charter on Human and Peoples' Rights and to ensure the integrated management of natural resources there is need to establish and strengthen a Natural Resource Commission to regulate the activities of the natural resource industries. " Set up a Transformation and Development Fund - percentage of which is to be slated as Future Generational Fund; another percentage as Social Development Fund with emphasises on manpower and skills development for natural resource sector.

" Restructure our educational system to develop manpower and skills for the natural resource sector. " That a national debate on land use be launched for the adoption of a comprehensive land use. " D evel op a l and/ pr oper t y cadastre system for the development of a land tenure policy - outcomes of the national debate. " That a cross-border initiative be launched for environmental management and joint management of natural resources. " An outcome of the national conference on natural resources should inform the development of a national policy on water noting water as a natural resource; usage of which for industrial purposes should benefit the immediate population and beyond. Effective oversight of the sector/industry by Civil Society and the legislature over the operations of corporate entitles that engage in natural resource and exploitation in Sierra Leone. " Forestry/environmental policies should focus on constant training so as to exploit emerging opportunities to reduced emission, deforestation, degradation plus conservation. " The natural resource sector catalyses and contributes to the broadbased growth and development of Sierra Leone through " Down-Stream linkages into beneficiation and manufacturing " Up-Stream linkages into capital goods, consumables and services industries " Side-Stream linkages into infrastructure (power, logistics, communications, water) and skills and technology development " Mutually beneficial partnerships between the state, the private sector, civil society, local communities and other stakeholders. We implore the conference participants who are themselves genuine Serra Leoneans consider these demands seriously for our natural resources to be the engine for the transformation of Sierra Leone.
For further information contact Aminata Kelly-Lamin - 076 651 755 (NMJD), Sahr Kendema - 076356691 (CGG), Hadji Bah 076717096 (CJM) and Joseph Rahall - 076 601979 (Green Scenery).

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The Government's Poverty Reduction Strategy Paper II (Agenda for Change) identifies the minerals sector as one of the engines of growth for the economy, with the potential to generate revenues, create employment, expand infrastructure and reduce urbanization. In order to realize this potential, the Government has embarked on a programme to restructure the sector and elevate practices and programmes to international standards and best practices within the region. In this context, and taking into account the longstanding and widespread public concerns that the exploitation of the country's mineral resources was not providing adequate benefits to the nation, the President set up a Task Force to review the sector which includes among others: review of the Core Minerals Policy, Mines and Minerals Act and all industrial mining rights. This Committee comprised of representatives from the Office of the Chief of Staff; Strategy and Policy Unit; Ministry of Finance and Economic Development; Ministry of Mineral Resources; Environmental Protection Agency; National Revenue Authority; Law Officers' Department; and International advisors.

THE TURNING POINT: REVIEW OF INDUSTRIAL MINING RIGHTS

With support from the World Bank and the UNDP, the Core Minerals Policy and the Mines and Minerals Act have been reviewed. Some Agreements (Koidu Holdings (Koidu Project) and London Mining) have been successfully reviewed and the new agreements will not only increase revenue to Government but will significantly reduce leakages. Negotiations are at an advanced stage with Sierra Minerals and Koidu Holdings (Tongoma) Project whilst Sierra Rutile and Cluff Gold's are at the preliminary stage of the review process. Other agreements to be renegotiated includeAfrican Minerals. The renegotiation process includes among others: 1. Internal meetings to analyze the companies agreement and other documents submitted with a view to: a. assess the extent to which the agreement differs from the existing laws; and b. Prepare and draft Government's position on the various provisions. 2. Visit to the companies mine site with relevant specialists to assess production and related activities and the impact on the environment. 3. Develop term sheet for negotiation drawing from international best practice. 4. Exchange term sheet with company and commence negotiations. 5. Draft Agreement and share with company for their comments. The constraints in the process includes among others, Availability of international partners/advisors; Timely support of Ministries Departments andAgencies (MDAs); and - Capacity constraints, especially for financial analysis. The lesson learnt from this project is that mining agreements should not be negotiated in isolation of Government's plans and programmes. The negotiating team has recommended that Government set up a mechanism for negotiations that would ensure representatives from all relevant MDAs to take part in the initial preparations before confronting the mining companies. This has been accepted and is now applied systematically. Government should secure the services of an expert in different mineral sectors that would provide technical advice to the negotiating team. While Government continues to review the sector and Large-scale mining Agreements, we will appreciate your comments on the process explained above. Is the process exhaustive? What can be improved upon and how? How can implementation of the Agreements be monitored? How should Government manage revenue generated from the mining sector?

Koinadugu District Council Concerned Over Reckless Mining

By Fatima Sesay

he Chairman of the Koinadugu District Council, Peter Bayuku Konteh, has referred to the mining activities taking place in the district as reckless and disorganized, and called on government to demonstrate political will in changing the situation. According to Chairman Bayuku, when his council took over from the previous one, the need for increased revenue generation to undertake development projects was deemed crucial. Knowing that our district is endowed with first class mineral resources such as gold, we turned our attention to the mining sector, he said, adding however on a sad note that We inherited a situation wherein the mining sector was not bringing any benefit to the people and the district because of lack of effective monitoring and regulation. The council, Chairman Bayuku went on, thought it fit to engage all the mining companies operating in the district by way of signing a Memorandum of Understanding (MoU) with them. We went ahead to draft the MoU but so far we have not got the cooperation of the companies and worse of it, neither the ministry of mineral resources nor the government has given us the backing needed to get the companies to comply. He said his council has tried in vain on three separate occasions to engage ministry of mines officials on the issue, stressing that as a result the situation remains the same. Among the issues raised in the draft MoU are: 1. That no mining company will be allowed to operate in the district without first meeting all obligations with the Government of Sierra Leone (Ministry of Mines) 2. That the allocation of mining land to a company should be approved first of all by the district /chiefdom council on behalf of the land owner (s) 3. That a mining company should only operate in the district after presenting detail information (documents) about itself to the district council and the chiefdom council in the area of operation 4. That companies with mechanized mining equipment should pay a licence fee of Ten Million Leones (Le 10,000,000) per annum to the Koinadugu District Council prior to the start of operations

If all these points are adhered to, I am sure the people of Koinadugu District will start realizing benefit from mining, Chairman Bayuku noted, pointing however that Council needs government blessing to enhance enforceability. This he said is important because according to him, some companies are Chairman Bayuku flipping through the pages of Mining Watch operating without proper documents and carrying out their mining activities with 5. That before starting operations, complete disregard to environmental every company must indicate in writing protection. and in agreement with the district and chiefdom councils the corporate social He referred to the ministry of mineral resources branch office in the district as responsibilities they intend to assume unserious, and reiterated the call on 6. That within two months of government to act now before it's too late. operations, companies must present to the two councils a list of their employees as Meanwhile, Abu Bakkarr Sillah, Assistant well as the responsibility and salary/wages Senior Mines Monitoring Officer attached at the Kabala office, said It is responsible of each staff mining that is taking place in the district 7. That every company operating in because we will not sit down and see the district shall within one month of companies doing what they want to do or operation make available for its workers operating without the required legal medical and watsan facilities. authority. Mr. Abu Bakarr Sillah 8. That every company is obliged to however stated that they are short staffed compensate the family of any deceased and lack the required capacity to conduct employee who dies on duty the sum of Ten robust patrols across the entire district, Million Leones (Le 10,000,000) within three months of his/her death. The same compensation shall be made to a worker who is left permanently disabled on duty. 9. That any company that goes beyond its allocated area of operation shall be liable to serious legal action 10. That after excavation and exploitation of the land through mining, every company shall be obliged to refill Fatima Sesay in front of the Koinadugu District Council believed to be the largest in the country. their pits for agricultural development. 11. That if a company is leaving for AJME finds that Mr. Sillah and his whatever reason, the land should be colleagues are operating under extremely returned to the land owner (s) and not to difficult circumstances, thereby making them vulnerable to the manipulations of any other company or individual mining companies. Mr. Sillah for instance, had to ask for a room at the office to be sleeping in, as no provision was made for him since he was transferred there from Freetown some two years ago. The motorbike assigned to him cannot confront the terrible roads leading to certain mining cites, and therefore sometimes have to rely on company vehicles for movement from one point to the other.

The primary objectives of the review was to ensure that the country fully benefits from it mineral resources and the creation of an environment of mutual trust between mining investors on the one hand, and the Government and people on the other, so that investors can operate in a stable business environment that guarantees fair returns on their investments. This, together with the establishment of transparent legal, fiscal and policy regimes as well as efficient institutions will further enhance the overall performance of the sector. Against this background, the review of mineral rights provided an entry point for the analysis of the sector's functions and for determining any changes required to meet the overall objectives of the Government. More specifically, the review was expected to formulate suitable recommendations for some of the existing mineral agreements, including whether they should be renegotiated, partially modified, accepted as is, or cancelled, depending on the extent to which they are consistent with the Government's vision and policies and on the extent to which the license holders comply with the letter and spirit of the relevant laws governing the implementation of the agreements.

GOVERNMENT REVENUE FROM DIAMOND ACTIVITY

Proceeds from Diamond Mining in Sierra Leone (Estimates 2006) Revenue Source Breakdown Fees Total Revenue Artisanal Mining (approx. 2,000 licenses) Licensing Monitoring Rehabilitation Surface Rent SUB TOTAL Le 200,000 Le 100,000 Le 200,000 Le 100,000 $135,600 $ 67,800 $135,600 $ 67,800 $406,800

Diamond Exports Duty (3% of $125 million) GDO Evaluators Treasury DACDF Monitoring Rehabilitation Public information SUB TOTAL 0.75% 0.40% 0.70% 0.75% 0.25% 0.05% 0.10% $930,000 $496,000 $868,000 $930,000 $310,000 $ 62,000 $124,000 $3,720,000

Exporters Year License (11) Half Year License (4) Export Agents (44) SUB TOTAL $ 40,000 $ 25,000 $ 5,000 $440,000 $100,000 $220,000 $760,000

Dealers Citizen (49) ECOWAS (15) Non citizen (21) Monitoring (82) Rehabilitation Dealer agents (89) SUB TOTAL $ 2,000 $ 2,500 $ 5,000 $ 400 Le 500,000 $ 1,000 $ 1,500 $ 98,000 $ 30,000 $105,000 $ 32,800 $ 13,898 $111,250 $390,948

TOTAL PROCEEDS

$5,277,000

Approximately $5.28 million USD is returned to the Government as revenue from diamond activity in Sierra Leone. The principal revenue from diamonds comes in the form of license fees and export taxes. Total annual exports of diamonds reached $125 million in 2006 and over $140 million in 2007 . The export levy on diamonds represents a key part of government's diamond-related revenue. Government also receives revenue from licenses (mining, dealer and export license fees). There are three types of people to whom dealer and export licenses can be issued (mining licenses are only issues to Sierra Leoneans): Citizens ECOWAS citizens Foreign nationals

Business-looking Mines office in Kabala

he lack of effective governance is believed to be the main reason why the natural resources of most African countries have not benefitted the nationals, thereby turning the resources into a curse, rather than a blessing. In a 2010 Revenue Watch Institute publication, it came out clearly that bad governance is one of the most serious challenges facing the extractive industry. But to promote good governance of those resources, we think that citizens and other civil society groups have a key responsibility, including members of parliament, who should ensure that good laws are made; equitable contracts are made between companies, governments and communities for the benefit of all. They should also be able to demand accountability from government and companies, said Emmanuel Kuyole, the Regional Director of Revenue Watch at the 2011 Regional Extractive Hub Summer School on Governance of Oil and Gas, held inAccra, Ghana. Revenue Watch Institute was amongst the sponsors of the summer school which drew participants from all walks of life including law makers, civil society activists, government officials, lawyers, media practitioners and experts in the extractive industry. Mostly referred to as a resource-rich continent, it has been revealed that 40 per cent of Africa's population is without access to safe drinking water and 33 per cent without access to adequate health care. 60 per cent of the global HIV/AIDS prevalence is in Africa. Africa is also the most dependent continent in the world. Of nearly two trillion dollars to developing countries in the last fifty years, Africa has received about a trillion dollars of the sum total. Norway and Nigeria for example, were endowed with extensive forests in prehistoric times. But the fractions of these forests that remain intact are far different. In Norway, over 90 per cent of the country's forest cover remains intact, while that of Nigeria is about 11 per cent intact and the rest has gone. The situation faced by Nigeria will soon hunt our country sierra Leone, due to the manner in which lands are being given away for so-called development

Reflection
By Mohamed Konneh

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Ministry of Finance and Economic Development Treasury Building George Street, Freetown

purposes under the guise of creating an economic zone. This is worrying because the negative effects of the situation have already started biting. A typical example is the controversial Pujehun land deal, involving at least two chiefdoms in the district, including Malen Chiefdom, that have leased out hectares of their lands to industrial oil palm plantation companies. The arrangements leading to the leases have been deemed

Africa resource curse syndrome What is responsible?

Who we are? Where are we headed?

he Association of Journalists on Mining and Extractives (AJME) came into existence in 2007 and has as its main objective 'using the media as an effective tool for sensitizing the public on the mining and extractive industry with a view of effecting required changes in the industry for the benefit of all Sierra Leoneans and more especially the host communities affected by the activities of the actors in the industry. AJME, comprising of 45 print and electronic media practitioners from across the country, works against the backdrop of the paradox of plenty in Sierra Leone, that is, our plentiful mineral resources have been a curse and not a blessing to the nation. For all our diamonds, iron ore, rutile, bauxite and other valuable resources, or is it partly because of them, Sierra Leone remain at the very bottom of the UN list of the world's least developed nations. Reversing this trend, turning our resources from a curse into a blessing, was the reason why journalists deemed it fit to organize themselves into an association, to bolster the advocacy machinery of the Campaign for Just Mining and other partners including the Network Movement for Justice and Development (NMJD), around issues bordering on the mining and extractive sector. Our objectives are to: "Undertake research on issues affecting the mining and extractive industry " Regularly publish the research findings in the media for the consumption of the wider public "Advocate on behalf of communities,

AJME:

SIERRA LEONE GOVERNMENT

Ministry of Mines and Mineral Resources 5th Floor, Youyi Building Brookfields, Freetown

PRESS RELEASE
The Ministry of Finance and Economic Development (MoFED) and the Ministry of Mines and Mineral Resources (MMR) wish to inform all mining and exploration companies that the Government of Sierra Leone has committed itself to promoting transparency and accountability in the mining sector. In essence, it is Government's position that the public should know what mining and exploration companies pay to Government and what Government receives from mining and exploration companies. However, it has come to the notice of MoFED and MMR that a number of mining and exploration companies have not only failed to make good their annual and renewal licence payments but have also failed to submit operational reports in accordance with the Mines and Minerals Act of 2009, sections 152, 65, 78, 102 and 115. To ascertain the authenticity of these claims, therefore, letters have been addressed to these companies and they will be followed by site visits. In this connection, all mining and exploration companies are hereby requested to furnish the Office of the Director of Mines (Youyi building) immediately with all of the following: 1. Evidence that you have made these payments or, in the absence of payment, a bank draft to bring the licence up to date. 2. Outstanding operational reports in respect of the mining licence. 3. Updated address, e-mail and telephone contact information. Mining and exploration companies are warned that failure to provide such evidence will leave the Ministry with no alternative but to initiate suspension procedures as per sections 53 and 172 of the Mines and Minerals Act of 2009, respectively. For further information contact the Office of the Director of Mines (076697-662) or the Mining Cadastre Office (076-330-694).

Author at a mine site in Ghana

to be heavily manipulated, thereby provoking backlashes from the affected property and land owners who were neither properly sensitized before including their properties in the deal, nor paid compensations that are in commensurate terms. Recently, 40 affected persons were detained for merely staging a peaceful protest action against what they believe is the grabbing of their lands, and a Member of Parliament, Honourable Shaka Sama, associating with them, subjected to police questioning on accusations of inciting the protest. More protest actions are on the pipeline, and who knows, they might take a bloody turn one day. Africas natural resources include diamond, gold, iron ore, bauxite, rutile, forest, land and so on. Sierra Leone as a country is endowed with plenty of these resources, but the question is, 'How much is the country benefitting from them'? In a recent report by Ibis, a nongovernmental organization working in the country, it came out clearly that revenues accrued from the mining sector account for merely 1.4 per cent to the country's gross domestic product. This is pittance when one considers how much so-called investors are taking away, and this has left many observers with the view that the country should rather stop the business of mining and concentrate on other sectors that would bring benefit to the people. Mining is destroying the land, and instead of making the lives of the people better, it is the direct reverse. Mining communities are the poorest; typical examples are Kono in the east and Sierra Rutile in the south. Transparency is lost as the operations of mining companies are often embedded in secrecy.

Major mining companies have their businesses registered in tax havens, with a view to dodging tax payment and thereby making corporate tax payment a big joke and also creating a huge opening for revenue loss. It is estimated that each year, African countries lose 5.2 billion United States Dollars in tax avoidance profits transferred from Europe to Ireland, Netherlands and onward to Bermuda. This chain is somehow very complicating, and this is exactly what these multi-lateral companies are doing in connivance with certain African leaders and this is done to further widen the gap between the rich and poor. Tax havens provide the structures that facilitate capital flight and multinational companies always make use of the scheme that is programmed by corrupt elites operating within the system. Tax havens undermine transparency and international cooperation. Tax havens are characterised by special legislations to provide protection for foreign companies and foreign accounts holders against tax payment. There is no transparency, no reporting, no disclosure of ownership, no clearly defined accounts, and sometimes one wonders why governments in Africa would want to cooperate with companies taking advantage of undue protection. As a result of bad policies pushed forward by international financial institutions such as the World Bank and IMF, African governments believe that they are under obligation to give incentive packages to foreign investors, in addition to giving a blind eye to their tax avoidance tactics. Civil society needs to hold governments

employees and groups affected by the activities of mining and extractive companies "Sensitize all stakeholders of the need for just and effective use of extractive resources " Create opportunities for others in the media to provide i n f o r m e d opinions and news reports on the mining sector " Network with other civil society groups and organizations as well as government agencies and departments to ensure adherence to the national and international standards by actors in the mining and extractive sector AJME aims to create: "Amore transparent mining sector "More human right awareness and protection for persons living in mining areas and environmental concerns "An invaluable body of mining-related documents available to the public and all interested parties "A cadre of journalists better informed and conversant on mining issues The enthusiasm of the AJME is limited only by the need for funding. Thus far, AJME's only source of funding has been NMJD, for which we are very grateful. But we are still seeking financial support to enable us set up our own offices, make us mobile so we can get to the mining areas, development our communication capacity and a website, and continue to increase our own expertise and knowledge through training. Meanwhile, the second phase of the training ended on Wednesday 25th April 2012 at the Hill Valley Hotel in Freetown. Six Liberian journalists joined their Sierra Leonean counterparts to benefit from the training that was coordinated by Christopher Springate of DeutchAwella.

Status of EITI implementation in Sierra Leone

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According to him, mining companies in the past created the platform for people to treat the current generation of mining companies with suspicion. We are in a situation wherein we have to substantiate everything we do, he stressed. For his part, Abu Brima of the Network Movement for Justice and Development (NMJD) representing the civil society family, decried the slow pace of the EITI implementation and blamed it on lack of political will. Government needs to do more, he called. Also speaking at the ceremony was the World Bank country representative who maintained that the country will derive much more benefit from its huge mineral wealth if transparency issues are taken seriously. Regrettably, Sierra Leone could not meet the minimum standards of the core EITI requirement which directs that information on payments and revenues supplied by both companies and government entities are 'the subject of a credible and independent audit'. Meanwhile, the EITI process has come under criticism, given that it lays all emphasis on tracking payments and revenues, but not how the revenues received are expended.

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The Issue There is enormous pressure to mine Sierra Leone's natural resources. The activities of Sierra Leone's two largescale mining companies result in land degradation through loss of vegetative cover, soil erosion, and contamination of water sources. Small-scale mining of diamonds and gold raises similar issues on a different scale. Artisanal mining results in deforestation and land degradation; and stagnant water collects in excavated areas which are abandoned by the miners, providing breeding ground for mosquitoes. Frequently, there are clashes between the farming communities and the mobile artisanal miners who are creating hazardous health conditions for the resident farmers. To examine this issue more closely, we will focus on small-scale mining and its environmental impact on the communities affected by mining activities. Description of the problem Sierra Leone is endowed with abundant rainfall, substantial mineral resources, some fertile soils, and extensive marine fisheries. This development has not been effectively managed, and Sierra Leone is classified as one of the poorest and least developed countries in the world. Continued poor economic performance is largely due to the war in Sierra Leone.

Sierra Leone mining and Environment

age five. Primary school enrollment is among the lowest inAfrica. Trade and the Environment Officially, the mining sector contributes minimally to the country's export earnings. It has lost some of its apparent strength, as its share of GDP has dropped from 16 percent in the early 1970s to less than 10 percent. This decline, however, reflects significant increases in unaccounted trade, as well as the depletion of deposits. The failure to combat illicit mining and widespread smuggling of gold and diamonds has significantly reduced public revenues. Prior to 1956, small-scale diamond mining was illegal. With the introduction of the Alluvial Diamond Mining Scheme, small-scale production of diamonds was licensed. Illicit production has however persisted, despite efforts to enforce the law. The method of production for small-scale mining ranges from very basic artisanal methods of digging earth and washing and sifting to the use of more capital intensive equipment, including water pumps and excavators. The most common method is the highly labour intensive process where large groups of people dig the earth and wash and sift the ore for diamonds. The environmental impact of small-scale diamond mining activities is severe, devastating the land by clearing and digging up vegetated areas. After an area is mined the land is left exposed and degraded, unsuitable for farming or any other activity. When the mining is carried out on hilly areas and slopes, severe erosion takes place and flooding can result. In certain locations, miners not only remove vegetation and economically valuable trees but their activities also divert surface drainage. Siltation in river systems is a common problem to be faced by communities living downstream. Water collects and stagnates in the dugout areas contributing to health hazards, potentially increasing the incidence of malaria and other water borne diseases. Mining activities expose communities to a wide range of diseases. Heavy rains

Sierra Leones Biggest Wetland Neglected As massive mining

cause dug-out areas to be transformed to stagnant ponds which are breeding grounds for mosquitoes, exacerbating the problem of Malaria. Communities interacting with water sources contaminated by mine wastes are exposed to diarrheal diseases. Mining activities cause heavy siltation in river beds and creeks, which reduces coastal coral and fish populations that feed and breed in it. Toxic wastes in the water sources contaminate marine life making them unfit for human consumption. "A study carried out in southwestern Sierra Leone (Gbakima) indicates the prevalence of schistosomiasis and other parasitic diseases. Urine and fetal samples from mine workers and their dependents from selected residential diamond mine camps in some mining communities revealed cases of widespread infection. The study concluded that abandoned diamond workings provide a habitat suitable for Biomphalaria pfeiffer, the snail vector for the disease, S. Mansoni. Biomphalaria pfeiffer has been found in large numbers in most streams and ponds in southwestern Sierra Leone, particularly in the Tongo area and the number of incidences of S. Mansoni in the Tongo Field hospital are reported to have increased dramatically. The study further concludes that diamond mining on a large scale and swamp rice farming can eventually contribute to a prevalence of schistosomiases, a major parasitic disease, which can be fatal to young children." Unfortunately there is little other details available on the direct health hazards imposed on the local communities. In order to provide a better understanding of the impact of the current mining activities, environmental impact assessments need to be undertaken for large-and small-scale mining activities to evaluate the relative environmental costs, including off-site costs like downstream siltation. In the case of small-scale mining activities, an assessment is needed of the
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Sierra Leone imports 70% of its requirements and suffers from extreme shortages of foreign currency. The war consumed as much as 75% of the government's financial and material resources. Sierra Leone has a population of about six million, growing at a rate of about 2.6 percent per annum. Over two-thirds of the population lives in absolute poverty. Rural life, with the exception of the diamond and gold mining areas, is generally at a subsistence level. Life expectancy is very low, estimated at 42 years; and infant mortality is among the highest in the world, despite the recent introduction of the free health care policy for pregnant women, lactating mothers and children below

By Theophilus S. Gbenda & Fatima Sesay ocated in the Diang Chiefdom, Koinadugu District in the north of the country, the Lake Sonfon provides an opportunity for Sierra Leone to boast about having one of the biggest and finest wetlands in the entire African region. The lake stretches 42 square miles and is home to a host of animals including endemic reptiles and birds, and is said to be serving as a biological corridor to accommodate animals and reptiles escaping from the Bumbuna hydroelectric fall, with which it has a direct connection. Birds from Europe are believed to be migrating to find settlement around the lake and forest officers have confirmed the presence of elephants, lions, tigers, buffalos, hippopotamus and other notable animals in the area. There are also said to be thousands of crocodiles, alligators and such others in the lake that is on record as being the hallmark of a natural formation that could hardly be found anywhere else in the world. According to Alfred Gibrilla Momoh, Forest Officer of Koinadugu District, the lake was proposed for conservation in the mid 1970s, but was never gazetted. Rich in pure gold, the lake soon attracted mining investors and a high population, and till date, massive mining is taking place around the lake, with minimal benefit to the district. About 30 camps have been opened around the perimeter of the lake, with almost everybody, men, women and children, depending on gold mining as their only means of survival. Even traditional cattle rearers and farmers have abandoned their trades for the gold mine. A number of licence have been issued to rights holders, making the mining activities going on around the lake which by all means is supposed to be protected, legal. One such rights holder is the Lion Mining Company Limited (LMCL), which according to Abu Bakarr Sillah, the Assistant Senior Mines Monitoring Officer in the district, has a concession covering 42 square miles; the largest. The LMCL undertakes industrial mining, it should be noted. Another prominent rights holder is the Chiefdom Speaker of the very Diang Chiefdom, Mohamed Jawara. Chief Jawara's concession which covers an area called Segbeya, has become a hub for artisanal gold miners from most parts of the country. On a daily basis, the artisanal miners sell their finds to a special purchasing committee set up by Chief Mohamed Jawara, at a fixed rate of Le 6,000 (Six Thousand Leones) for 20 percentage of gold dust. It is obvious that the miners are being tricked or underpaid. Imagine the committee buying various percentages from hundreds of miners on a daily basis, without having to negotiate? While the licence holder is living in affluence, the miners and populations in the mining camps around the lake live like dogs. They have no access to pure drinking water, no toilets, no hospital, no school, no market, no balanced diet, no social amenities and of course nothing else to look up to. Worse of it is that the people live in makeshift structures that could hardly stand rain and cold. To say that people living under such conditions are prone to a variety of ailments is an understatement. The Chairman of the Koinadugu District Council, Peter Bayuku Konteh, referred to the mining activities occurring around Lake Sonfon as "Wreckless", noting that, "Mining is destroying the finest natural lake we have in the country".
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GIZ opens resource centre to promote knowledge on natural resources

A busy resource centre indeed

By Mohamed Konneh As part of conscious efforts to promote awareness and transparency in the mining and extractive industry, the German International Cooperation (GIZ), has opened a well contained resource centre at the library facility of the Campaign for Good Governance (CGG) at Tengbeh Town, Freetown. The main aim of the establishment of the resource centre is to increase opportunities for Sierra Leoneans and visitors alike to access credible information and knowledge on issues relating to resource governance. In Sierra Leone, the number of stakeholders with access, knowledge and expertise on natural resources is limited. Therefore, the basis of informed opinions on the part of decision makers for checks and balances is low. Adding to this is that due to low internet connectivity and almost non-existent book market, stakeholders can hardly access up-todate scientifically and academically-based information. It is in view of these factors that GIZ deemed it fit to support the idea of establishing the resource centre, in partnership with various civil society organizations such as the Network Movement for Justice and Development (NMJD), Campaign for Good Governance (CGG), Campaign for Just Mining (CJM), the National Advocacy Coalition of the Extractives (NACE), the Association of Journalists on Mining and Extractives (AJME), ChristianAid andActionAid. The provision of specialized library materials on resource governance for use by visitors, students, researchers and journalists with the aim of educating a measurable number of stakeholders in the field of natural resources management, is of utmost importance. The resource centre will host a wide range of over 300 publications related to mining and resource governance issues in Sierra Leone and Africa, including laws, regulations, scientific publications, documentations by research institutions and nongovernmental organizations, documents of German Development Cooperation, the World Bank Group and international partners around the key words such as mining in Sierra Leone and West Africa, resource curse, corporate social responsibility and the Extractive Industry Transparency Initiative (EITI). The idea of establishing the resource centre is not only to serve as a point of reference for interested citizens and visitors alike, but also as a venue for debates and public lectures. It is in furtherance of this objective that GIZ, in partnership with the organizations above, in mid April 2012, established another resource centre at the Fourah Bay College (FBC) campus. GIZ and its partners are doing all of these against the backdrop that a well-informed citizenry at all levels of natural resource governance will contribute positively towards the fair distribution of the proceeds from the exploitation of natural resources, thereby enhancing sustainable growth and stability in the country and beyond.

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People's right to demand returns from extraction of non-renewable resources

By Anders Reimers Larsen IBIS - Sierra Leone The industry of extractives is without any doubt one of the most important sectors of global economy. It provides the raw materials used in electronics, construction, combustion engines, as well as it feeds into the personal consumer market with gold and gem stones. It is the basis for a number of industries and for that reason; the extractive industry is by default powerful and essential to global economy. IBIS was formed as a response to support the power struggles against apartheid across Southern Africa, and we are still committed to address power issues as they become constructed in these present times. What do we mean by that? It means that we seek to analyse the structural causes for poverty, and we try our best to change these. Why take this battle? Otherwise, we will still be here a hundred years from now. We don't want our grandchildren to be fighting the same battles as we did. How is fighting structural causes for poverty related to the extractive industries? The global situation is very much so that mining companies and oil drilling companies have assumed a critical role in how this world goes round and round. Not only on the stock exchanges, in western economies, but perhaps even more crucially in resource rich countries. The resource curse as has been widely accepted as a fact is the evidence of the proportion between high poverty and the presence of rich natural resources, and hence also the presence of extractive industries. But why is it a problem that, for instance, a mining company wields a lot of power when they invest so much money? Investments into a poor country have their economical reasoning and even in IBIS' analysis, not all the consequences of the mining companies operating in Sierra Leone are bad. Not at all. However, we must understand the nature of a company and state it clearly over and over in order to remind ourselves. A private company has one overruling objective, which is to make
profits. It doesn't matter if it is making soap from palm oil to sell at the local market or if it is an iron ore mining company selling to the global market. Everything comes down to the bottom line. Is it profitable? Why do we need to remind ourselves this? Because we must not mistake a company for a development agency. We should never expect a company automatically will deliver development in the shape of public services or welfare goods. In an economic perspective, this would only make sense for a company if they could profit on it. But this doesn't mean that a mining company in Sierra Leone is not a driver of change like the rest of us wish to acclaim that we are also. They are. There are however two follow-ups to that. What change do they bring? And how is the change driven? These are the two crucial questions to ask before engaging in the sector of extractive industries: The result and the means. Who are the owners of the natural resources? For IBIS the result needs to be equal prospering, equal distribution of benefits and the means a responsible, accountable and transparent business conduct. We partner with civil society and communities as our drivers of change? Why so? Because the power structure is again key here. It is not the companies who own the land, the minerals, the oil, the forests, the rocks, anything of that. The companies do not own these. They have bought the right to utilise these raw materials, but they do not own them. Hence, it is not their choice how to exploit and extract. It is not their choice what they should pay in return. If we leave it to a company to decide the terms of taxes, land lease fees, royalties, community development, etc. we are messing with the basis of a company: They will always choose the cheapest option vis a vis their primary objective: profit. If the owners of the natural resources want something in return, they need to set the terms. Period. It is the citizens' knowledge about what would be good for their communities that should be a point of departure for such terms. It should be the government's responsibility for development and public services that should be the point of departure for such terms. Acompany who wishes to utilise someone else's resources need to go by the owners' rules. And the owners are the state and the citizens. The state and the government has the discretion to negotiate with the companies, but the citizens of the country elect this government. On a recent conference on parliamentarians' role in this sector, it was stated by one Ugandan MP: I was elected by the citizens, so how could I legislate without their influence. In Sierra Leone, who has a democratically elected government, the natural resources belong to the people, and if the means of which these are extracted is not fitting, both in terms of their environmental, social, and financial consequences, the people will have to move towards changing those means. This means practically to problematize the legislation, the contracts, and the generation and usage of revenue. To sum up this far, it means that IBIS seeks to empower people and their organisations to influence decisionmaking on extraction of natural resources. to establish human, environmental, social, cultural and economic rights and sustainability as a guiding principle for any extractive activity, as well as IBIS seeks; to establish as a guiding principle that revenues from extractive industries must be transparently managed with the right to information; revenues must be maintained in the country through adequate taxes and invested in development for poor people. The above constitutes IBIS strategy objectives on extractive industries. We target these issues through being present on a global, national and local level. This vertical view is important if we wish to see the change taking place and to work legitimately on all levels. Is 1.4% of GDP in mining revenues enough in return for a non-renewable resource? Are we against the mining companies, one might think? No. But we want to be critical towards what is being promoted as the good sides of mining and extractive industries. Are they not providing jobs and paying better salaries? Are dependent family members of employees not also benefitting? Yes that is the good side. And that is enough for a company. But is

he Deutsche Wella Akademie w i t h s u p p o r t f ro m t h e German International Cooperation (GIZ) has trained 12 print and electronic journalists from Liberia and Sierra Leone on 'Reporting on Extractive Industries'. The training ran from 19th - 30th September at the Saint Andrews Convent in Monrovia, Liberia, with Kate Hairsine (Journalism/Radio expert), Ralph Hotte (Investigative Journalism/TV expert) and Rainer Gilhofer (Technical, Radio and TV expert), as trainers. The training aimed at giving Liberian and Sierra Leonean journalists the instruments they need to provide their audiences with balanced, objective and impartial information on extractive industries, with a view to promoting public debate on resources and making their use more transparent. The training focused on providing background information on Liberia and Sierra Leone's extractive industries, understanding the ethical and economic benefits of transparency, investigative journalism, research and story-telling techniques. The training came at a time when both countries are deemed to be at the crossroads insofar as the exploitation of their vast natural resources are concerned, and more so when oil has come into the picture. During the training workshop, participants unanimously agreed to establish a Mano River Union of Journalists on Natural Resources, so as to be well positioned to tackle issues bordering on the mining and extractive

Sierra Leonean And Liberian Journalists Trained On Natural Resources Management

Sierra Leonean and Liberian journalists with Liberian Senator in the middle
sector in the region which includes neighbouring Guinea and Ivory Coast. The end of the all-important training was followed by a grand certification ceremony attended by the German Ambassador to Liberia, Dr. Bodo Schaff, who in his speech congratulated participants for successfully undertaking the two-week intensive course and assuring of continued German collaboration in ensuring beneficiation from the mining and extractives industries in the region. Ambassador Schaff said mineral resources can be a blessing if used wisely, and likewise could be a curse and a source of conflicts if used otherwise. He welcomed the initiative to establish a network among journalists in the region, stating that "Journalists have a great role to play to turn the situation around for the good of all". Earlier in his speech, head of the Sierra Leonean delegation Theophilus S. Gbenda

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Liberian and Sierra Leonean journalists displaying their certificates

who happens to be the Chairman of the Association of Journalists on Mining and Extractives (AJME), thanked the German tax payers and facilitators of the training for what he referred to as a timely intervention, adding that the training has further broadened their horizons to dig deeper into the sector and expose the odds that are inhibiting the country's chances of making the most from its huge mineral wealth. Mr. Gbenda furthered that "Our government will no longer be left alone when it comes to taking the lead in bringing about the desired changes in the sector which remains a potential time bomb for the peace and quiet the country is currently enjoying". On his part, leader of the Liberian delegation, Augustine Myers of Star Radio and TV, said "For us Liberian journalists, we consider the training as an eye opener because all our reports have been focused on political, and not development issues". Mr. Myers said one reason why Liberian journalists have not been pursuing mining related stories is due to the lack of support and training. He went on to state that a good number of mining activities are taking place in parts of the country, with no single journalist bothering to find out what is going on and what the country and its people are benefiting as a result. He expressed optimism that the formation of a network among colleagues in the region will be a useful tool in creating more interest in the sector and as a result usher in a change for the better. Meanwhile, the second phase of the training ended Wednesday 25th April 2012 at the Hill Valley Hotel in Freetown, with six Liberian journalists in attendance.

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Training On Oil and Gas And The Role Of The Media Ends In Ghana
By Mohamed Konneh t is three years down the line organizing training on governance of oil, gas and mining revenues in Ghana's capital, Accra, at the Ghana Institute of Management and PublicAdministration (GIMPA). The latest training started on Monday 25th July and ran up to 6th August, 2011, drawing participants from nine African countries including Ghana, Sierra Leone, Tanzania, Uganda, Mozambique, Zambia, Zimbabwe, Nigeria, and Liberia. Sponsored by GIZ and Revenue Watch Institute, the Regional Extractive Industries Knowledge Hub Summer School, which is an annual event, is open to senior level civil society activists engaged in the extractive sector, members of parliament serving in the extractive industry, legal practitioners and senior level journalists interested in covering stories relating to the mining and extractive industry. Seven Sierra Leoneans including civil society actors, a legal practitioner and two journalists from the Association of Journalists on Mining and Extractives (AJME) took part in the training. AJME's representatives at the training were Diana Coker, National Organizing Secretary and yours truly Mohamed Konneh, Secretary General. The inclusion of media practitioners in the training underscores their importance in nation building, especially in a developing country such as Sierra Leone, whose natural resources have been plundered for decades. The role of the media is crucial not only because of its informative and educative roles, but also because of its role in exposing the odds in society. The extractive industry is a rich sector, with powerful individuals especially in government, mining companies and their shareholders, enjoying the spoils. In view of the distinctive role of the media in bringing sanity in the sector, the need for broadening the knowledge base or capacitating journalists with the tools required to effectively report on the sector, cannot be overemphasized. The training provides the basis of understanding for media practitioners interested in the sector and the difficulties surrounding it. The training in Ghana focused mainly on these thematic issues. At the opening ceremony, Guest Speaker Mohamed Amin from the civil society platform in Ghana, said "The summer school offers significant opportunity for African professionals and activists to share ideas on the common goal of promoting the sustainable management of the continent's abundant natural resources". Africa he said is confronted with the paradox of plenty, noting that the major setback could be attributed to a chain of factors including commoditization of the policy environment, the rentier state mentally, the boom effect, institutional weakness, resource conflicts and vested interests. Mr. Amin went on to state that most resource-rich countries in Africa are associated with high levels of poverty, poor infrastructure, institutional collapse and huge debts. "The major problems facing resource-rich countries and which have hampered their abilities to efficiently manage their resource wealth for improved living conditions of their people, are problems of unfair investment and distribution of resource wealth, poor governance and weak institutions", he said, adding that natural resources are non-renewable and their prices are volatile. He challenged the media to continue in the struggle of

Mines Minister launches the Cadastre and Online Repository System

but how effectively will it work??? he Minister of Mines and Mineral Resources, Alhaji Minkailu Mansaray, has launched the Cadastre and Online Repository System for the mining sector in the country at a ceremony held at the Presidential Lounge of the National Stadium in Brookfields, Freetown. Addressing the gathering, the Minister said that the system is an electronically operated one that is free, transparent and credible. He explained that over the years a lot of attention has been given to the mining sector which he said has made it imperative for a system to be put in place to ensure that the country is investor friendly. He also explained that this system will greatly project the extractive sector of the country to enhance the country's economy to the satisfaction of every Sierra Leonean. He emphasized that the mining sector should be transparent to ensure that it becomes the business of the people who should become the greatest benefactors. He stressed that the online repository system is a solid tool for both Government and investors to derive maximum benefit from the mining and extractive sector. He also explained that this system will also keep the people informed on how funds are generated and expended. Potential investors, the Minister noted, should also make use of the online system so that they can have an insight into the country's mining and extractive sector. He said the system is capable of drastically stamping out corrupt practices in the sector. Making a statement, the Head of Mission, European, Union, Jean Pierre Reymondet-Commoy, said through this system the people of Sierra Leone will for the first time have full access to the operations and financial aspects of the mines and extractive sector. He expressed happiness to be part of the process, pointing out that the mines sector is very critical to national development. He noted that the mining sector has a vast potential to help develop the country when procedures are transparent and tailored in the best interest of the people. In his remarks, the Country Director of GIZ, Marina Mdaihli congratulated the Government and people of Sierra Leone for ensuring that the online system of mines registration and revenue collection become a reality. She stated that they were very proud to have provided both the moral and financial support to the Sierra Leone Mining Cadastre and Online Repository System and to have also helped in the training of staff members of the Ministry of Mines and the National Revenue Authority who will be working on the system. She also emphasized the need for various ministries who have working relationships with the mines ministry to be meeting regularly to move the system forward. She concluded that her organization is looking forward to the success of the system. Meanwhile, some concerned citizens have sounded the view that the system is bound to suffer some hiccups along the line especially given that some relevant information bordering on the country's mining and extractive industry might not be displayed on the online repository and also given that access to effective internet connectivity remains a major challenge.

Gola Forest Co-management:

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By Mohamed Massaquoi he forest co-management program is aimed at instituting and maintaining a positive relationship between the resources in the Gola Forest reserve and the surrounding communities. It involves a strategic planning that would appropriately and sustainably combine and use available resources in the reserve and allied customary laws to generate and optimize benefits for the communities, while at the same time maintaining the forest's ecosystem. Forest reserves are portions of state lands where commercial harvesting of wood products, mining and other domestic activities are prohibited in order to capture elements of biodiversity that could be missing from harvested sites. Small (patch) reserves will conserve sensitive, localized resources such as steep slopes, fragile soils, and habitat for certain rare species that benefit from intact forest canopies. Large reserves will represent the diversity of the forest landscapes remaining in the country. The core objective of forest comanagement is to improve and maintain boundary communities' livelihoods. The program has its specific objectives that it aims to achieve. It implements activities within a specified impact area and partners with communities in order to achieve the set objectives. Gola Forest is part of the Upper Guinea Forest, of which less than 30 per cent of the forest now remains intact. It was once a huge expanse of lowland rainforest covering Sierra Leone, south-east Guinea and Liberia. Often times, surrounding communities, especially those that oppose conservation for farming, mining and other domestic activities in the reservation, have been critical about the effective utilization and the management of the resources of the Gola Forest. The co-management of the God-given resources of the Gola Forest has now been considered by many conservationists as the best way forward to involve communities in the governance and utilization of the reserve. The process will among other things support the regeneration and sustainable management of forest

A Standard Practice For Conservation

resources in customary land, promote community institutionalization, governance and responsibility. The process will also include the provision of capacity building and skills development services for local communities so as to enhance the promotion and development of natural resource based enterprises which will in turn facilitate conflict management in the respective communities. In Tunkia Chiefdom, Kenema District, a good number of forest edge communities have expressed frustration over the utilization of the forest, saying they are yet to see fulfilled the promises made to them in return for their cooperation to protect the forest. The Gola Forest program however claims to be supporting education, social and infrastructural development projects in the edge communities. Recently, the Paramount Chief of Tunkia chiefdom, PC Amara Goway Sama and other sub chiefs, preferred mining to conservation. In April 2011, Sable Mining Company announced that it has acquired an 80% interest in Red Rock Mining Company, which claims to hold a fifty-year mining lease agreement at Bagla Hills, an area located within the Gola Forest reserve. Bagla Hills is said to have a rich deposit of iron ore and other minerals, according to an exploration conducted by Bethlehem Steel Mining Company, between 1973 and 1975. This has made the site highly attractive to investors. One such investor is quoted to have casually remarked while addressing community stakeholders in the area that "Your government has to choose between development and the preservation of a mere forest". The proposed Bagla Hills Iron Ore project in the Gola Forest has faced stiff resistance from the people of Tunkia Chiefdom, as some land owners have openly challenged and condemned the said lease agreement, saying they were not involved in the arrangement. The situation seems to be getting worse for the investors as according to a government press statement issued few months ago, no mining activities should take place in the reserve. The huge rainforest is under strict government protection, and has been hailed as one of the best examples of forest conservation to cut down carbon emissions in theAfrican Sub-Region. His Excellency President Ernest Bai Koroma while launching the Trans Boundary Programme between Sierra Leone and neighbouring Liberia, declared the 75,000 hectares stretch forest as the country's national park, thereby protecting more than 50 mammal species including leopards, chimps and forest elephants, 2,000 different plants and 274 species of birds of which 14 are said to be close to extinction. The area, situated close to the Liberian border, will become the flagship site in a new national park network with local communities paid annually to replace royalties linked to logging and diamond mining in the forest. Scientists will be encouraged to study the wildlife of the area which is expected to become a hub for eco-tourism. The Gola Forest Project Leader, Guy Marris, in an interview said they are currently embarking on two management approaches that are geared towards involving community stakeholders in the protection of the reserve and to help them know their 'usual rights and obligations' through a forest co-management system, which he said will minimize the misconceptions amongst community people about immediate benefits or a mining option. ''We are planning to set up village comanagement committees, because it is our intension to allocate funds for an alternative livelihood project for the people", he said. According to him, a wide range of consultation with forest edge communities to develop the said project h a s b e e n h e l d i n t h e a ff e c t e d communities. Protected Area Manager of the Gola Forest, Alusine Fofanah, emphasized that the inputs of stakeholders for effective forest management is key to the successful conservation of the forest. He said even though there are limited 'usual rights' of the proclaimed national park by people, yet the program strongly recognizes the role of the traditional people in the management of the reserve. The Promoting Agriculture, Governance and Environment (PAGE) which is operating in Kailahun, Kono, Kenema and Koinadugu Districts, is implementing a four-year project worth $13.2 million, funded by USAID. The aim of the project is to enhance the economic development of four of the country's most underserviced districts. The project is working to increase Continued page 13

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The roots of inequality: Mining profits soar, but Africans are still poor
rofits have ballooned in recent years, but African states haven't seen their fair share. It's time to look beyond the woefully inadequate compensation of voluntary corporate social responsibility actions by mining firms inAfrica.

By Yao Graham
In 2009, African heads of state adopted the African Mining Vision. Its key objective is the transformation of Africa's mining sector into a catalyst of broad-based growth and development and a key component of a diversified, vibrant and globally competitive, industrializing African economy. The vision foresees Africa moving away from being a source of unprocessed minerals, towards the production of valueadded goods from its mineral resources. It also recognizes that the governance of Africa's mining sector must improve. It must become more environmentally friendly, more inclusive in sharing its benefits, more socially responsible and be accepted by surrounding communities. The African Mining Vision also calls for an increased share of mineral revenues for African countries. In short, the African Mining Vision offers a more equitable future of economic relations between Africa and the rest of the world. It is Africa's response to the disappointing developmental outcomes of two decades of mineral policy. From the late 1980s, amidst economic crisis, faced with low mineral prices, and under the heavy influence of western aid agencies, African countries liberalized their mining sectors. State mining companies were privatized, sold off to foreign investors, and new concessions awarded under very generous investment conditions. These involved low royalty rates, tax exemptions, long-term freezing of tax rates and freedom to retain a high percentage of earnings abroad. The argument was that resource royalties to African governments, along with the voluntary community development activities of mining firms, would be adequate developmental returns. Except for a short-lived dip from 2008 to 2009, the demand for and price of minerals have been rising. Between 2002 and 2007 the average prices of minerals and metals rose by 260 per cent-and with them, so did the profits of mining firms. According to a PricewaterhouseCoopers study, the top 40 mining firms enjoyed a 1,900 per cent cumulative increase in net profits in the six years between 2002 and 2007! But very little of this additional income and profits went to the mineral exporting African countries, thanks both to the lopsided fiscal terms enjoyed by mining firms, and to their use of tax avoidance schemes such as doing business with shell

companies in tax havens. Voluntary CSR is woefully inadequate compensation. The case of Zambia, for which copper makes up about 80 per cent of export earnings, is a good illustration of the asymmetry of power and benefits between mining companies on the one hand and African states on the other. Zambia levies a derisory 0.6 per cent royalty on copper in some cases. In 2004, with copper prices averaging $2,868 US per tonne, it earned $8 million US in budget revenue from 400,000 tonnes of copper exported by foreign mining companies. This is a mere fraction of the $200 million US it earned in 1992, before privatization, from the same volume and similar price of copper. In the meantime, with the quadrupling of copper prices between 2002 and 2008, firms operating in Zambia such as the Canadian company First Quantum Minerals, have seen sharp jumps. Over the past decade, a lot of international attention has been focused on ensuring extractive-sector revenue transparency in developing countries so as to limit corruption and the misapplication of public monies. Citizens' access to information about public finances is extremely important, and is a key element of good governance. However, the limits of revenue transparency for ensuring an adequate share of mineral revenues for African countries is highlighted by the wildly disproportionate returns to mining firms and African governments since 2002. Completely corruption-free and optimum use of their tiny royalties would do little for Zambia's development prospects. For communities in Africa's mining areas, the promised development outcomes of the mining boom remain illusory. Human rights

violations, tensions and conflicts between mining companies and communities are persistent and widespread. Voluntary corporate social responsibility interventions by mining firms have been woefully inadequate compensation for the disruption of livelihoods through dispossession of lands, pollution of waters and heavy-handed policing in support of the mines. The African Mining Vision exemplifies the growing consensus in Africa that the harmful race to the bottom to attract mining investment has to end. The race has inflicted a 'winner's curse' of gaining investment, but at the high price of lost revenues and reduced policy options for broad-based and dynamic development. African countries want to re-negotiate mining contracts and review fiscal regimes so as to increase their share of mining revenues. International co-operation is needed to curb the use of tax havens by transnational firms, including those in mining, which deprive all jurisdictions, especially developing countries, of tax revenues. Africa is the continent with the least industrial capacity, and increased revenues from Africa's mineral wealth could and should help transform that reality. Communities expect a much stronger accountability framework for the human rights, environmental and social responsibility of mining firms. These and more should set the benchmark for support of Africa's development efforts by countries such as Canada. Yao Graham is the co-ordinator of Third World Network-Africa, a pan-African policy research and advocacy organization based in Accra, Ghana. editor@embassymag.ca Courtesy of Embassy Publications

CJM And School Club On Mining Join African Children To Commemorate The Day Of The African Child

Sierra Leones Biggest Wetland NeglectedAs massive mining takes precedence

From page 9
He said even though council gets 20 per cent from annual surface rents, he has personally made attempts to stop mining activities taking place around the lake. This he said is because, "That place should be an absolute reserved place". K.I Bangura of the Wild Life Sector in the Ministry of Agriculture Forestry and Food Security, said the lake which has been proposed as a game sanctuary for a variety of animals and spices, should by all indications be listed amongst the protected areas in the country. Before mining took over the area, the lake used to be a distinctive tourist attraction. Now though, environmentalists say the lake which is situated right in the middle of the Sula Mountain, has eroded considerably as a result of siltation caused by human behaviour. One such behaviour is massive logging around the lake. Nobody seems to care about the threat under which the Lake Sonfon is, and according to officials of the Ministry of Agriculture Forestry and Food Security that has authority over it, "The situation is above us because it is the Ministry of Mineral Resources that is issuing licence for mining activities to take place around the lake". Abu Bakarr Sillah, Assistant Senior Mines Monitoring Officer attached at the Ministry of Mineral Resources office in Kabala, the headquarter town of Koinadugu District, said "The ministry perceives the Lake Sonfon as a spectacular mining spot and not as a reserved territory". The whole Lake Sonfon issue has become a major political one, and many civil society organizations have simply kept sealed lips over it.

he Campaign for Just Mining (CJM) and School Club on Mining and Extractives, on 16th June 2011 joined millions of African children to commemorate the Day of theAfrican Child. As part of the commemoration, CJM conducted on-the-spot checks in artisanal mining communities in the eastern and southern regions and the Western Area to investigate incidences of child mining in these areas. CJM made the following findings during the investigations. A trend of parents and guardians putting children to work in the mines as labourers in order to generate income to sustain the family. In Kono district, the research team saw eight children at work in the mine. The children indicated that they have abandoned the classroom and jumped into mining due to poverty. Scores of children interviewed in the district say they no longer attend school due to mining. In the southern region, children were found breaking rocks for which they are paid Le 10,000 (Ten Thousand Leones) per day or Le 5,000 (Five Thousand Leones) for five hours of hard labour. At a granite mining site in the Western Area Rural District, CJM found children as young as 6 years of age breaking rocks for which their parents/guardians are paid Le 5,000 per head pan. The team also took notice of sexual exploitation in the gold mines across the districts visited and a high level dropout of girls from school due to rampant teenage pregnancies caused by miners. In light of these findings and in line with the laws of Sierra Leone including the Child RightsAct of 2007 and the

Truck loading sand

CJM members

Mines and Minerals Act of 2009, CJM and the School Club on Mining and Extractives are demanding the following: That the Government of Sierra Leone and other stakeholders in civil society should monitor all artisanal mining areas on a regular basis to discourage unlawful activities such as child labour and sexual exploitation. That the Government should engage parents of children in artisanal mining communities on alternative livelihood projects. NMJD intern That the Government should increase the capacity of the Ministry of have to generate much needed income to Social Welfare, Gender and Children's run their home is to embark on stone breaking. Also interviewed at the scene was Paul Kargbo, a 5-year old boy who was helping his mother in the business of stone breaking. His mother Fatmata Kamara said she is willing to send her child to school but due to poverty she cannot afford the cost. "We have to break stones otherwise we will Teenage stone miner in action not have food to eat or even pay our house rent". Affairs in terms of budget allocation and Children and their parents resting under a numerical strength to properly handle cases shade after heavy work under the hot of child mining and ensuring that children burning sun At Hamilton Village along the Freetown are in school rather than in the mines. That the Government should Peninsular, the team saw massive sand ensure that primary education is truly free mining going on under the control and for all and that teachers and administrators management of the Western Rural District in primary schools are not adding extra Council. burden on parents and guardians by way of Like Goderich, the team discovered women, men and youths, mostly school extra fees, etc. That the Government should create a Child dropouts, doing sand mining. The entire environment where the sand is being mined C o m m i s s i o n t o is under serious threat of erosion. engage in raising awareness around issues of child l a b o u r, t e e n a g e pregnancy and the likes. At a place called Olympus, a former stone mining site of a G e r m a n construction company in Stone miners with the dependants

Goderich, the team found women, men, youths and children breaking stones to make ends meet. During the Goderich visit, a middle aged woman Kadiatu Kanu, who was breaking stones alongside a dumb boy called Osman Kanu and said to be her son, disclosed that her husband died in 2003 and therefore has to go stone breaking to raise funds to send her children to school. At the same site, Sheik A. Turay and Abie Kargbo revealed that they have lived together as husband and wife for more than twelve years and have five children. According to them, the only means they

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"Rutile Is Not Beneficial To Us"

From Page 15 Chief Tuayemie disclosed that since there relocation by Sierra Rutile Company in 1987, no provision has been made for health centre, school, pipe borne water and other social facilities. He added that it was quite recently that World Vision with funds from Irish Aid through the Impere Area Development Programme (IADP) built a MCH post for them at Kahekay Junctionla. He also disclosed that CARE International, ten years ago, dug a water well for the community with a view to addressing the acute water problem, but that the said well has since become a white elephant. We are totally abandoned by the company. Since our relocation over twenty years ago amidst promises, the company has hardly paid us a visit to know how we are coping or ask us questions regarding our constraints, he pointed out rather frustratingly. The chief furthered that they have made several complaints to government and the company regarding their deplorable condition of living, but that no step has been taken to address their problems. He added that during mining operations, the shock and dust emanating from the application of heavy mining machineries inflict many unexplainable illnesses on them. He cited cholera and tuberculosis as some of the most common ailments in the community, and attributed them to air pollution caused by over speeding company vehicles amidst heavy dust. Our fertile agricultural land has been taken away from us and presently if we want to farm we have to walk for more than twenty miles to and fro, which was not so when we were at Gangama, Chief Tuayemie said, adding that Our poorly fed children have to walk seven miles to school all the way at Moriba Town and seven miles back each day. He said the company has failed to build them community facilities such as court barray, mosque, church and school, as earlier promised. Because of lack of easy access to land, most people he said are unable to carry out their usual farming activities, thereby causing food shortage in the community. We are dying of starvation, and nobody seems to care, he maintained. Talking to Simeon Amara, the Chiefdom Speaker of Impere Chiefdom, he reiterated that Indeed, the much expected benefits from rutile and other minerals that this chiefdom has, are now like a sour grape on the tooth of the community people. Chief Simeon Amara stated that they were relocated from Old Belleh Town

We should have mourned the discovery of diamonds in Kono

Chiefdom Speaker, Simeon Amara

(where Sierra Rutile Company Limited is now mining). He described Old Belleh Town as notable for agricultural productivity, stressing that their relocation from there has turned out to be an undue punishment. We used to produce food in abundance and had free access to sea foods including fish and crab, but nowadays, since our relocation, things have changed for the worse, he said, furthering that The so-called New Belleh Town where we have been relocated, is a complete desert, with no access to farmland, no bush for hunting, and absolutely no social facilities to make life worth living in this The collapsed Solondo dredge: Still begging for rescue place. Everything here is money, he pointed compensation each year is too small and out. should be reconsidered by the appropriate We have been here for over 20 years, he authorities. He also noted that the Agricultural Development Fund should be paid directly to the community people rather than to the government in Freetown where the money is often delayed for no good reason. For this year, Sierra Rutile paid the money to government in March but we only got it in October, when the planting season had long passed. The distribution chain of the A mined out site in the heart of Rutile now a mighty river money, he maintained, is quite unfair. went on, noting that Some of the houses that He mentioned unemployment and the lack you see here were built by the company and of transport facilities to convey pupils to the host of others were built by the school as major challenges affecting the community people themselves. According to him, the houses built by the company for their relocation are far below standard. He referred to their health situation as deplorable, stressing that the community is presently without a health facility to respond to the spate of ailments affecting the people as a direct result of mining. He cited hypertension as one of the health hazards confronting them. Main road leading to mining site being graded The chief further stated that the amount community. given to them for crop compensation The entire road system is very deplorable as only the main roads that lead to the mining sites are graded, he went on, adding that Minerals are God given gifts and should first and foremost benefit those living around the vicinity where they are mined, but in Rutile it is completely the opposite. Salifu at the Sierra Rutile mine site with operating dredge seen in the background

annually is not commensurate to what they used to get from the sale of their crops, adding that the community has even appealed to the company to increase the payment to a period of 20 years, just so as to enable them receive something substantial. Rather uncompromisingly, Chief Simeon Amara stated that the much talked about Agricultural Development Fund (ADF) is not working well for them. He said the company is paying them a surface rent of $ 10 (Ten US Dollars) per acre, stressing that The most unfair thing is that when the lease agreement was entered into, neither the government nor the company consulted with us who are the rightful owners of the land. Chief Amara further stated that the surface rent of One Million Leones paid by the company to family heads as crop

By Saa Matthias Bendu beautiful twinkle stone was discovered on the banks of Gbobonada River in the Jaima Sewafe Chiefdom in Kono District, precisely in 1927. The news of the discovery spread wide and fast like a bush fire in the dry season, and within a twinkling of an eye, there was a massive exodus of people from all over the world into the district. This magnificent stone was referred to as the 'Devil's Stone' by the native Kono people, whilst the westerners called it diamond. The influx of people from different nationalities with varied cultural and social backgrounds, sparked an interaction of host and guest that resulted in a new social setting not easy to define. Then came De Beers, one of the world's richest mining companies that first started mining diamonds in Kono in the early 1930's. It is now 82 years since then, as compared to the large scale diamond production which started in Botswana only 33 years ago. Whilst the production of diamond has propelled Botswana into rapid socioeconomic and infrastructural development, Sierra Leone's case has been in the reverse, with no end in sight. Bear in mind that there are important differences between the proximity of opportunities South Africa gave to Botswana and those the greedy and corrupt British colonial masters have to Sierra Leone, have largely been seen as the reason for the two divers development situations of the two resource-rich countries. It is factual that our uninvited British colonial masters were the very ones that started the massive exploitation of our mineral wealth and planted the seed of pervasive corruption that currently exists in the sector. The colonial masters also woefully neglected and marginalized the then rich mining district of Kono in teams of socio-economic development, a situation which served as a catalyst for the formation of the first political party in the district. The Kono Progressive Independence Movement founded by Paramount Chiefs T.S Mbriwa and A.A Mani emerged in 1955 in response to the widespread feeling among the Kono People that they were not getting

enough attention from their national leaders. This neglect and marginalization continues unabatedly till date. Regime after regime in our 51 years of independence, has prostituted the district for its huge wealth and nothing more. Kono is constantly placed on the altar of sacrifice for the development of other parts of the country and the western world, while she remains abandoned in nudity and backwardness. Kono still lacks good roads, electricity, modern structures, pipe-borne water, effective hygiene and sanitation facilities and higher institutions of learning, to name a few. The diamond trade has exposed Kono district to massive environmental damage and human rights abuses. The indigenes have nothing to point at as benefit from the proceeds of mining. During the war, the district became one of the hottest spots. Both governmentbacked and rebel forces fought for the control of the diamonds, thereby causing

Author
massive destruction of lives and property. Rather than being a blessing to the district, the discovery of diamond has turned out to be a big curse. Over 80 years of mining diamonds and gold in the district has only made the majority of the indigenes poorer. There is nothing whatsoever to celebrate by the people of Kono when it comes to mining in their district, a situation that has left them in deep regret as to why in the first diamond was discovered in their locality. For them, the discovery of diamond in Kono is mournful, rather than celebratory.

The diamond trade has exposed Kono district to massive environmental damage and human rights abuses. The indigenes have nothing to point at as benefit from the proceeds of mining

A Standard Practice For Conservation

From page 10
agricultural productivity while supporting sustainable natural resource management and promoting transparency and participatory democratic governance. The project also aims at supporting producers organizations and marketing associations through a market-driven and value chain-based approach that supports the achievement of USAID's economic development goals in the country. The Natural Resources Management Officer of PAGE, Maamod Turay, in an interview, referred to the forest comanagement initiative as an innovative approach for the Gola Forest conservation project, nothing that the old idea of chasing away intruders has now become an outdated strategy. He said PAGE has engaged stakeholders

in various communities to properly manage the forest and that they have provided agricultural support as an alternative livelihood scheme for the communities. ''Our objective is to enhance the conservation of the forest, and for it to be sustainable you don't have to keep the people away from the planning and governance processes. We are currently operating in five chiefdoms and 98 communities in the Kenema district", he noted. According to him, PAGE has so far been overwhelmed by the level of cooperation between the organization and the people because as he puts it "We have created village, section and chiefdom forest management committees to formulate policies for the effective utilization and conservation of the forest".

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conflicts, noting that the company is yet to fully commit itself to the By Abu Bakarr Munu Mr. Jabbie expressed regret that KHL hired ono District, situated in the the services of officials from the Ministry of eastern part of the country, is Agriculture Forestry and Food Security to known beyond boundaries as undertake the assessment of plantations being one of the major producers of owned by affected property owners, saying high quality diamonds around the that the exercise was done in favour of the world. c o m p a n y. A c c o r d i n g t o h i m , a n Mining began in the district as early as independent body should have been the best 1930. The district is often referred to as to undertake such an important exercise. the bread basket of the country, but He said in all, 284 property owners from ironically, it is one of, if not the least five villages namely Sokogbe, Swarray developed, with almost all the basic Town, Saquee Town, New Senbehun and social amenities completely lacking, Yarmadu village, are directly affected by including pipe-borne water, electricity the operations of the company, with almost supply and good road network. half of that amount still awaiting Successive governments over the years resettlement to safer locations. have failed woefully to put proper Tamba James, a civil works engineer and a development mechanisms in place for son of the soil, who was asked to give an Alhaji Minkailu Mansaray the people in that community and hence, expert view on the mining method of KHL, development in the district is nothing said "The blasting done by KHL has both good to write home about. short and long term adverse effects on the It was against this background that a people as well as on the environment". civil society activist, Mohamed Jabbie, He noted that most of the people that are born and breed in Kono, recently appreciating the work of KHL and what is described development in the district as happening in Kono with respect to mining sluggish, while talking to the activities, are doing so because of personal Association of Journalists on Mining gains. and Extractives (AJME) in an interview. The engineer said the chemicals the Mr. Jabbie, speaking generally on the company is using are harmful, adding that situation in the district, noted that there these chemicals later convert into are over 20 mining companies operating poisonous gases in the air. in there, with Koidu Holdings Mining "The majority of the people in Kono are Company Limited (KHL) which is living in abject poverty. I am not happy. I doing Kimberlitic mining, being the see it as a betrayal. Our elders have sold biggest with a long term mining lease Kono, Tankoro Chiefdom in particular. agreement with the Government of This is a fact some people don't want to Sierra Leone (GoSL). accept," Tamba James charged. The mining method employed by KHL He also pointed out that the cloudy is affecting the lives of the people living atmosphere created by the blasting is within the blasting perimeter greatly, he polluting the air and that it is not good for said, adding that "Each and every time human health, as its affects the respiratory the company wants to blast, you will see system and lead to cough and cold. This was people running for their lives, leaving confirmed by the Kono District Medical behind all their personal belongings and Officer, Dr. Samuel Kietell. whatever they are doing". This he said An affected property owner, Kai Lawrence happens after a short notice by alarming M'bayo, said they are dissatisfied with the the sheering. "Sometimes security compensation paid to them by KHL guards of the company will forcefully because according to him, the assessment ask you out of your house, even if it did not cover shrines and other sacred means going under rain", Mr. Jabbie places including graves. stated. Plantation items such as mango, orange, As a way of proving a point, Jabbie cited and coconut trees are paid for Le 5, 000 an example wherein a pregnant woman (Five Thousand Leones) per tree for a was forced to go into premature labour period of five years and above all he said the as a result of the blasting and gave birth process of resettling the people is far from to a baby girl that was later named being satisfactory, Mr. M'bayo maintained. 'Blastiner'. It remains to be seen what the current He mentioned the fact that resettling the mission of the newly constituted executive affected property owners living within of APOA is, but what is clear is that the the concession and compensating them widely recognized executive of the for their crops remain major sources of association was deliberately plunged into

"Development In Kono Is Sluggish "Rutile Is Not Beneficial To Us" Says Activist

disarray and rendered completely ineffective due to high level manipulation. Meanwhile, Koidu Holdings, in what has been referred to as window dressing, has for the first time in its mining history in the district, undertaken a substantial corporate social responsibility drive. The company recently constructed classroom blocks, market, hospital and other facilities such as mosque and church, at the Kania Resettlement Camp, where persons previously resident within the blasting perimeter were relocated for safety reasons. While the company has made huge publicity out of the provision of the said facilities, concerns have been raised by the inmates of the camp regarding the management and functioning of the hospital. In a press interview, the Communications Director of KHL, Ibrahim Sorie Kamara, stated categorically that once the company hands over the finished hospital buildings to the community, it will now be the responsibility of the government to take over its overall day-to-day running. Many people had thought that the company will equip the hospital and bring in its own medical doctors to administer free treatment to patients entitled. Meanwhile further, doubts still exist over the death of an indigenous youth, whose body was discovered in a pit within KHL's concession. There is no evidence of any investigation into the matter. The death came amidst concerns by the company that its concession is being raided by illegal artisanal miners. With Paul Ngaba Saquee, Paramount Chief of Tankoro Chiefdom who doubles as chairman of the Village Resettlement Committee (VRC) now serving as unofficial spokesman of KHL, it is said that the future of the chiefdom hangs in a balance. Despite the fact that persons within the original 250 meters radius of the KHL blasting perimeter are yet to be fully resettled, the company has been given the green light to expand its operations to a further 250 meters deeper into the Koidu City, thereby generating a new caseload of over 700 affected families who are going to be in urgent need of relocation or suffer the inconveniences of leaving their homes each time blasting is to be done. Recently, a man died when he was forced out of his home for blasting to go on. The man is said to have been gravely ill and that he died right inside KHLs ambulance. This death could have been avoided had the government ensured the strict implementation of the Jenkins Johnston Commission of Inquiry recommendations.

says Section Chief

They also grumbled about employment, pointing out that despite the fact that two mining companies are operating in the area, unemployment remains a big issue, By Salifu Conteh and Musa Kamara with 80-85 per cent of the population Since the commencement of mining directly affected. Priority they say, is activities in Sierra Rutile, located in given to people outside the affected Bonthe District, southern Sierra communities. Leone, the inhabitants are yet to see In one relocated community called Lungi any benefit coming their way. Village in the Impere Chiefdom, you Despite the huge natural wealth around could hardly see smile on the faces of the them, the indigenes live in abject people. Even the surrounding poverty and high health hazards, while at the same time subjected to violations Section Chief Alfred Tuayemie talking to AJME's Salifu Conteh environment can tell you that things are and deprivations from mining are now suffering from extreme hunger not in any way rosy for the residents, most companies, particularly the Sierra and deprivation, due mainly to the of whom are living in makeshift and Rutile Company Limited. unavailability of land to enable them unprotected buildings. This village was Many land owners have been undertake their usual smallholder farming relocated in 1987 from where the Solondo dredge collapsed some two years ago. dispossessed of their lands and activities. plantations, and even displaced from Resettled communities, apart from the The Section Chief resident in the village, the ancestral homes. exposure to hunger and deprivation, are Alfred Tuayemie, said in a rather angry The affected people have forwarded also lacking in health facilities and other mood while highlighting the ordeal he and his people are going through, that The c o m p l a i n t s r e g a r d i n g t h e i r basic social amenities earlier promised. dissatisfaction to the immediate past In the entire Rutile area, there is minerals deposited in our homeland have and present governments of Sierra absolutely no hospital or health centre become a curse rather than a blessing to Leone and several other quarters, and built or supported by Sierra Rutile us. This he said has left deep scars on even staged a number of protest Company Limited or VIMETCO, the their minds as could be seen in their facial actions to vent out their grievances other company operating there. The health expressions. against the companies, but as it seems, centre at Kahekay was built by World Chief Alfred Tuayemie recalled that back nobody has acted in their interest. They Vision with funds from Irish Aid through in Gangama Village where they were remain disillusioned and could go on t h e I m p e r e A r e a D e v e l o p m e n t before the relocation, life was quite the rampage anytime, especially now Programme, while the one at Moriba pleasant for them in terms of their living that Sierra Rutile Company Limited is Town was built by the Government of condition.According to him, no concrete working on plans to expand its Sierra Leone through the National operations. Commission for SocialAction (NaCSA). Despite corporate social responsibility Both health centers operate without promises, the Sierra Rutile general electricity, making it more than difficult to area is a complete shadow of itself, effectively administer treatment to the with a mass of artificial lakes littering hundreds of patients that frequent there on the entire community and posing as daily basis. death traps. Scores of people Emergency cases are referred to either especially children, have drowned in Serabu or Matru Jong hospitals at the these lakes, with no compensation or expense of the relatives of the sick. The attention paid to the bereaved families. companies occasionally provide Families that have been resettled to ambulance to convey dying patients to A hungry family at Lungi village, with a places far removed from their these referral hospitals, but not without suckling mother sitting hopelessly with her four children traditional settlements where they used tearful pleas. to have everything in abundance and Many residents have expressed regret that agreement was made with them regarding hardly buy anything from the market their homeland is endowed with so much the terms of their relocation, thereby except rare items like salt and maggie, natural resources. According to them, putting them at the mercy of the company. their lives were better off before the He said the houses under which they are commencement of mining in their living were built by the villagers locality. themselves, noting that what the company Mining has only made us become poorer gave to them for the construction of the and miserable, they said, adding that houses is nothing good to talk about. He The only benefits we've seen so far are said the company, rather than supplying total blackout, bad roads, high cost of the required building materials to them, living, unavailability of farm lands and the ended up selling items such as zincs to outbreak of contagious diseases like them at high prizes. Tuberculosis, diarrhoea and respiratory Continued page 17 Lungi village court barray in problems.

very bad shape