Benefits Contd..
Concerns
•Significant consolidation potential.
•Real cost inflation - not uncommon to the global sector.
•60% of Sierra Leone is currently under-explored.
•Local community activity threats (even though threats may exist, they are not that common).
•Sierra Leonean assets are usually the lowest quartile of their respective cash cost of production (cheapest to extract) and highly
resilient to decline in commodity prices.
•Steps to engagement:
•The Sierra Leonean government is progressive and understands
mining and its benefits to the country.
•
•
•
•Recent changes to the mining royalty code were modest and
government has indicated its support for the sector.
•
•
•The supply of skilled labour and infrastructure are largely in
place.
•
Early engagement with local Chiefs
Proactive investment in local communities
Maintaining positive corporate reputation (Corporate Social Responsibilities)
Tax and royalty
While still friendly on a global scale, more pressure to go in
the other direction.
•Relatively slow licensing process
Sierra Leone Mining Sector Impact on Income Tax Collection
Mining Sector Impact on Economic Growth
Mining Sector Impact on Imports
Mining Sector Impact on Imports
Estimated Portfolio By Investor Country
Mining Licenses: Presented Vs. Approved 2007-2013
Source: Sierra Leone Ministry of Mineral Resources
World Bank Data
ADB