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Mines Minister accuses Sierra Rutile of “illegal” shutdown

  • Julius Daniel Mattai, Minister of Mines

By Sorie Ibrahim Fofanah

Sierra Leone's Minister of Mines and Mineral Resources, Julius Mattai has accused Sierra Rutile Company of suspending its operations illegally and had refused to present the required document to the ministry for review.

He called on all relevant authorities in the mining sector to come on board to ensure that the “right” thing is done, as he briefed the media on his ministry’s challenges at the Foreign Affairs Ministry conference room, Freetown on 26th March 2024.

"In 2021, the government gave opportunities called fiscal regime royalties from four percent (4%) to zero point five 0.5%), fuel income duty, withholding Tax among others to mining companies,” Mattai said.

He explained how in 2021 Sierra Rutile complained to the Government of challenges, which saw the government giving the mining company concessions. “The government did so just because we don’t want our citizens to lose their jobs,” he stated.

Mattai also pointed out that a Mining Lease Agreement is not mandatory though the government offers that to companies.

He claimed that since August 2021, Sierra Rutile has not been paying corporate income tax of 25%, but the minimum turnover tax which he said the government reduced from 3.5% to 0.5%.

The minister said the company made over 76 million dollars in 2022, and over 30 million dollars in 2023, but has refused to cooperate for a re-adjustment of its agreement with the government.

He stated that Sierra Rutile refused to pay the usual tax clinging on to what he said were terms and conditions that had existed for 23 years despite the government engaging them as the country was struggling at the time. Mattai said instead Sierra Rutile threatened to shut down and redundant the Sierra Leonean workers. “They (Sierra Rutile) however went ahead and shut down,” he said.

The mining sector, he stated is very complex, adding that it is also capital-intensive to mine diamonds, gold, and other minerals. He noted that investors expect profit and that there should be a win-win situation for all. 

Mattai pointed out that some steps should be taken for mining to impact the economy in Africa, emphasising that without laws and policies that will guide both parties, there will be problems.

He acknowledged that the mines ministry will have to review some of the laws and improve awareness of geo-technological knowledge.

Copyright (c) Politico Online (05/04/24)

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