By Mabinty M. Kamara
Leone Rock Metal Group Limited has presented to the Government of Sierra Leone on behalf of the primary host communities, Dansogoia, Sambaia, and Simiria Chiefdoms in Tonkolili district the sum of twenty-three billion three hundred and sixty-nine million eight hundred and ninety-five thousand three hundred and twenty Leones (20,369,895,320.00) as Community Development Agreement Fund .
Presenting the cash in Magburaka yesterday 30th of March, the Chief Executive Officer of Leone Rock Group Gilbert Zhao said he was honoured that his company was making another achievement this year, saying that last year they made history by paying the Community Development Fund directly into the community account for the first time in Tonkolili. He said his company’s ambition is to grow together with its operational communities. “Our company will make sure our communities become the best example of an independent and thriving mining community under our valued social governance implementations. For me, as I am going to look at His Excellency hand over the cheque to the community stakeholders, that moment is not only a historic moment to me but also a fulfilment of my heart's desire to give to the people of this our wonderful mining community what they truly deserve,” he said.
He added that the company had already completed Phase II Stage I concentrate processing Plant and that they started producing and exporting 62% Iron concentrate in January of this year.
He stated that Tonkolili Iron Ore Mines was well- known for the frequent strikes, violent demonstrations, and conflict with the communities and that the mines usually closes whenever the Iron Ore price drops sending a large number of employees home, leaving the communities in poverty.
However, he said the Leone Rock Metal Group was determined to make sure itsbecomes a thing of the past. “Since we took over the mines, we have worked so well with our landowners and community stakeholders that we are still the only large-scale mining company to operate in 2 years with no strike, protest or demonstration. I want to thank our host Paramount Chiefs and the landowners for their leadership and protection of the company,” he said.
That notwithstanding, he said the company has faced some challenges in its operations over the two- year period such as restoring the Mines, railway, and port during Covid Pandemic amidst low Iron Ore Prices, upgrading the capacity of the Railway and Port to meet our production demand and recently a drop in Iron Ore Price in the Global market.
Speaking at the handing-over ceremony President Julius Maada Bio noted that the event was the outcome of the many policies and governance reforms that were laid out in his party’s 2018 manifesto for transforming the mining sector.
He added that in spite of a very tough global investment climate as a result of COVID-19 and other global crises, it is possible to create and maintain a healthy investment climate that is attractive and conducive for investors in the mining sector.
“We are, therefore, grateful that investors from the People’s Republic of China have kept faith in our economy. At a broader level, this is a deep manifestation of the close solidarity between our two countries that is based on mutual trust and respect, a shared vision, and a shared interest in our mutual prosperity. That is the basis of over half a century of close friendship and mutual cooperation. I, therefore, wish to express our nation’s deep sense of gratitude to President Xi Jinping and the Government and People of the People’s Republic of China,” he said.
He added that since 2018, his government has maintained a clear view of the future of a sustainable mining sector in the country that is based on a transparent regulatory regime where everyone -- patient investors, the community, workers, and the government “know the rules and play by the rules; and, a clear set of incentives that is good for business, good for the community, and good for the country”.
He said that his government believes that mining communities should benefit significantly from mining activities in their areas. The president stated: “Hitherto, there was very little evidence that the paltry 0.001% paid by mining companies was even received by the communities. For ten years of mining in the Tonkolili District, there is no direct community development footprint from community development agreements negotiated before 2018. My Government believes that communities can achieve better development outcomes when more resources are directly provided to take care of their stated development needs. There is a saying in popular lore that “diamonds are not forever.”
Mining, he acknowledged is not forever but that mining communities deserve to be better off even when mining operations close down or are scaled down.
He applauded the mining group for maintaining its commitment to pay 1% of revenue as an investment in local sustainable livelihood and community development projects. “As I have indicated, the CDA will not only support the economic viability and resilience of this community, but mining will also leave a positive footprint in these communities,” he said.
He called on the communities to support the peaceful operations of Leone Rock Metals-Kingho and to protect the company’s assets.
In a welcome address to all present, Paramount Chief Baimba Foray Musa Bendugu of Sambiaya Bendugu expressed appreciation for the increment of the CDA fund to 1% which amount to over Le 20 Billion, which he said happened under President Bio's tenure in governance. He said prior to President Bio's leadership there was no good relationship between the mining companies and the various communities.
He said Leone Rock Metal Group has done an increasingly amazing job in contributing to community development projects. He added that the relocated communities are currently benefiting hugely from LRMG with the provision of basic amenities and security.
Last year, the company paid the sum of Le5, 392,472,315 (Five Billion, three hundred and ninety-two thousand and three hundred and fifteen old Leones) as CDA to the same host mining communities. The Community Development Agreement (CDA) comes into existence as a result of a provision in the Mines & Minerals Act, 2009, and as revised in the Mines & Minerals Development Act, 2022.
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