By Mabinty M. Kamara
The Sierra Leone government has announced the cancellation of the license of the Tonkolili Iron Ore Project (TIOP), a mining project operated by Shansteel (SL) Limited, a subsidiary of the Chinese owned Shandong Iron and Steel Limited.
The National Minerals Agency (NMA), which made the announcement on Thursday, accused the iron ore miner of lack of commitment to meeting its obligations to the government and the communities in which it operate.
NMA, which is responsible to regulate the activities of mining companies, also announced the lifting of a 21-day ban earlier imposed on another iron ore miner. - SL Mining Limited, which operates the Marampa Mines in Lunsar, Port Loko District.
Julius Daniel Mattai, NMA’s Director General, said the cancellation and suspension were based on “serious breach” of terms of the licenses of the companies and the Mines and Minerals Act of 2009. Among others, the companies were also found wanting for delay in renewal of registration.
Mattai said TIOP and its sister company the African Port and Rail Services (APRS) SL contravened its statutory obligations in both the mining lease and the rail way and port lease agreements. TIOP, which operates in the Tonkolili District, also failed to pay their annual license fees and lease rent agreement since August 2018. And the company is also accused of failing to make royalty payment for April 2018 shipment of iron ore and to provide details of phase two mines development plan, including information on the geology, mining operations , processing and rail way operations.
SL Mining was found wanting for contravening provisions of the Mines and Minerals Act of 2009 and for making a statement to the government in connection to their mining rights which they know or ought to have known to be false. The Lunsar based miner is also wanted by the office of the Attorney General over alleged corrupt practices.
“The cancellation of these licenses and the ARPS lease agreement is without prejudice to the obligation of TIOP and ARPS pursuant to the license and lease agreement,” Mr Mattai told journalists at the government’s weekly press briefing in the conference hall of the Ministry of Information and Communication.
The revelations followed days of speculations about the suspension and cancellation of many major mining companies. But Mattai dismissed as rumors those suggestions.
“The aim of the government is to promote investment, and the decision to cancel or suspend license are not taken lightly,” he said.
In spite of the lifting of the ban on its operations, SL Mining Ltd cannot ship any of its products until it provides outstanding information required of its by the government, NMA officials said.
TIOP was initially operated by the defunct African Minerals Limited (AML), which was bought by Shandong in a major takeover deal in 2015.
AML started its operations in Sierra Leone in 2011 after the mining lease for the project was approved in August 2010. The project which involved a fully integrated mines, rail and Port infrastructure was planned to be developed in three phases with the first phase in November 2011, and the second phase to have commenced in 2014 though production starts in 2016.
The Tonkolili mine was supposed to have an operation period of more than sixty years.
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