Presentacin de PowerPoint

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MINISTRY OF MINERAL RESOURCES PRESENTATION AT
THE 9TH DEPAC MEETING 16-17 September
2004 BY ALHAJI M.S. DEEN MINISTER OF MINERAL
RESOURCES
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CONTENTS 1.- Mission of the Ministry 2.- Goals 3
.- Mining Policy Objectives Overall
Objectives Specific Objectives 4.- Mineral
Resources Diamonds Rutile Bauxite Gold O
thers 5.- Challenges 6.- Conclusions
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Mission of the Ministry

• ... is to promote investment and regulate
• the mining industry in Sierra Leone
• through the adoption and implementation
• of appropriate policies and programmes
• geared towards the realization of potential
• economic benefits from mining and related
• activities for sustainable national development
• and improved quality of life and prosperity
  for
• the people of Sierra Leone

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Goals

• For small scale artisanal mining sub-sector,
  the Goals are
• to improve the overall standard of living of
  the involved communities through
• Modernising licensing on first- come-first
  served basis
• Establishment of a credit or revolving loan
  fund
• Provision of extension services

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MINING POLICY OBJECTIVES
1995 and 1998 Mining Policies Foundation for
establishment of enabling environment for
minerals sector.

• The new Core Mineral Policy (CMP) 2003
• improves on goals and objectives of
• previous policies
• OVERALL OBJECTIVE
• progressively increase production,
• income, tax revenues, employment
• opportunities generated by the
• mining sector (both artisanal and
• industrial), reduce illegal mining,
• eradicate smuggling of minerals
• and to rehabilitate mined out areas.

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MINING POLICY OBJECTIVES

• Specific Objectives (contd.)
• Promote improved Employment
• practices, Encourage participation
• of Women in the Mineral Sector
• and Prevent the Employment of
• Children in the Mining Industry
• Add Value to Mineral Products
• and Facilitate Trading Opportunities
• for Mined Products
• Improve the Welfare and Benefits
• of the Individuals and Communities
• Participating in and affected by
• Mining

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MINERAL RESOURCES - Geology
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Assortment of rough diamonds
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Model kimberlite pipe relative sizes of pipes
in Africa

• Cross section of a model kimberlite pipe and a
  compilation of relative sizes of kimberlite in
  Africa.
• The erosional datum is Kimberly and based on this
  model the Koidu field would lie at a level within
  the basement complex at 500 to 1000m.

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Mineral Resources.

• Maraka Pits

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Mineral Resources.

• There are no more gravels below this surface

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Mineral Resources.

• This swamp has also been cleared of gravel

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• KOIDU HOLDINGS S.A.
• Koidu Holdings S.A. granted concessions
• for Koidu Tongo kimberlite deposits
• Reserves of deposits down to depth of 600m
  are
• 6.3 million carats at Koidu
• 3.2 million carats at Tongo
• KH S.A. started kimberlite mining operations
  in Koidu in January 2004
• As at August, 2004 KH S.A. already exported
  46,974 carats diamonds valued
• at US9,700,000

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Mineral Resources.
Kimberlite Diamond Exports 2004
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Koidu Holdings - Kimberlite Operations Benefits
to Sierra Leone

• Fiscal Regime
• Licence Fees US200,000 per annum
• 10 free carried interest held by Govt. post
  bulk sampling
• Royalty 5 of Gross Revenue
• Valuation fee 0.5 of Gross Revenue
• Agricultural Fund 0.1 of Revenue
• Import Tax 5 of all Imports
• Corporate Income Tax 35
• Personal Tax PAYE Sliding Scale
• Employment of over 400 Sierra Leoneans

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New Houses at Relocation Site Koidu Holdings
S.A.
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Artisanal Diamond Export -2004
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Diamond Exports 2000-2004
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Registered Mineral Exports
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Current Artisanal Mining Licences
Year No. of Licences 2001 700
2002 1,200 2003 2,011 2004
(June) 2,300
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DACDF Summary of Funds Disbursed by District
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Share Reward Between Principal Stakeholders
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Mineral Resources.

• Rutile
• At closure of SRL in 1995, Gbangbama reserve
  was estimated at 150 million tons of rutile
  (grade 1.5-2) plus large reserves of ilmenite
  and zircon
• The Sembehun group is estimated to contain
  over 180 million tons of rutile with grades
  ranging from 1.2 to 1.6 rutile
• The indicated resource estimate of the
  Rotifunk deposit is 235 million tons at 0.62
  rutile it is currently undergoing detailed
  studies.

Sierra Rutiles Bucket Ladder Dredge
Mobile Auger drill Rotifunk
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SRL - Cash Flow Schedule Showing Govt. Revenue
streams
The company plans to employ up to 800 Sierra
Leoneans for a start and will increase as
operations expand
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Wet Plant Installation Sierra Rutile
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Reclaimed Land Sierra Rutile
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• Bauxite
• The Mokanji deposit is variable in quality,
• shipping grade ranging between 55 56
• alumina and 3-4 silica
• Maximum annual production was 1.5 million
• tons
• The Port Loko bauxite deposit is of medium
• grade with about 48 alumina and about
• 3 to 3.5 silica.
• Mineable reserves estimated at 100 million
• tons of which 77.3 million tons of bauxite
• have been proved.

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Sierra Minerals Cash Flow Schedule
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GoSL Cash Flow Schedule
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Gold

• Considerable deposits of alluvial and lode
  gold are wide spread
• Over 80 prospecting and exploration licences
  have been issued
• Two of these prospects at Yirisen in Tonkolili
  and Baomahun in Valunia chiefdom are at an
  advanced stage
• Drilling is nearing conclusion at Yirisen,
  whilst the Baomahun deposit is to undergo yet
  another stage of drilling
• It is estimated that 10 of the 80 prospecting
  and exploration licences may develop into
  producing mines.

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Diamond Drill in Action Yirisen Prospect
Drill core logging Yirisen Prospect
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Artisanal gold miners using sluice box
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Challenges

• Challenges for Government are
• Achieving Optimal Prices for Diamonds
• Attain an equitable resource distribution
• Creation of a positive multiplier effect and
  re-investment in the sector
• Combat illicit diamond mining smuggling

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Challenges

• Use of Rod Carrot method
• THE CARROT
• DMACDF
• 40 Award
• Chiefdom Mining Committee
• THE ROD
• Mines Minerals (Amendment) ACT 2004
• (Stiff Penalties for unlawful possession
  smuggling of precious minerals)
• Unlawful Possession 3 years, No fine
• Smuggling 5 years, No fine

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Challenges

• LOGISTICS
• Personnel
• Recruitment Training
• Vehicles
• Supervision data collection
• Office Accommodation
• Boajibu, Barma, Kamakwe, Kambia
• Communication Equipment
• VHF radios
• Equipment consumables
• Field geology Laboratory

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Conclusion
The mining sector requires attention and funding,
if we should fight against corruption, IDM and
smuggling to achieve maximum benefit from our
mineral resources. In this regard, friendly
donors who have shown so much concern in diamond
smuggling and corruption are requested to
consider any assistance they can offer.
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THANK YOU!