A sweeping review of rules governing smallscale and artisanal mining in Sierra Leone has created a regulatory environment conducive to achieving the level of open competition, continuity and security of tenure that can maximise benefits of the activity to the nation.

Changes recently introduced were also designed to minimise smuggling of precious, industrial and sand-based minerals that previously plagued the sector.

According to Sierra Leone's Ministry of Mines and Mineral Resources, the livelihoods of more than half a million people in the country depend on small-scale and artisanal mining activity, which also generates revenue for government and an "appreciable amount of economic activity" beyond that directly connected to the minerals recovered.

Sierra Leone's strengthened and more transparent regulatory structure covers not only artisans and small-scale miners, but also the dealers and exporters of minerals produced.

The government had "decided to regulate the Small-Scale and Artisanal Mining sector in a manner that ensures open competition, continuity and security of tenure, and minimises smuggling of Precious, Industrial and Sand Based Minerals so as to maximise benefits to the nation as a whole".

Regulations specify key requirements for artisanal miners as:

• Application for an Artisanal Mining Licence shall be submitted in the prescribed application form.
• An Applicant for an Artisanal Mining Licence shall be allocated available mining land (not encroaching on area of other Mineral Rights Holders) by the Chiefdom Mining Allocation Committee before it is processed and issued by the National Minerals Agency (NMA). Artisanal mining may be facilitated on areas of other Mineral Rights Holders only with the permission of such Mineral Rights Holders who shall inform the NMA for its concurrence.
• An applicant for an Artisanal Mining Licence shall provide evidence that he possesses sufficient capital and mining experience to undertake mining in accordance with the Artisanal Mining Provisions prescribed in the Mines and Minerals Act 2009.
• An Artisanal Mining Licence shall be granted to (i) in the case of an individual only to a Citizen of Sierra Leone; and (ii) to a Co-operative registered in Sierra Leone under the Co-operatives Act Cap 253.
• All such co-operatives shall be registered with the National Minerals Agency for approval to participate in Artisanal mining of precious, industrial, and sand-based minerals.
• In addition to the registration, a co-operative shall apply for an Artisanal Mining Licence and must fulfil the condition set forth for the application of the Prescribed Licence.
• Where an Artisanal Miner is to be sponsored by a Financier, such Financier shall show proof of his/her financial ability to undertake the mining venture and may be a Licensed Dealer or an Exporter. A Financier without a Dealer/Exporter's Licence shall not be allowed to handle any of the precious, industrial, and sand based minerals recovered from the mining operations but may facilitate the sale of such Precious, Industrial, and Sand Based Minerals to a Licensed Dealer or Exporter.
• All Financial Supporters of Artisanal Mining Licence Holders shall register with the NMA regional office, and shall pay a registration fee of Le 250,000 per acre.
• Heavy earth-mining machines such as Excavators, dredges, etc, shall not be employed in Artisanal Mining Licensed areas and shall target alluvial deposits only (and not Kimberlite deposits). Pit depth shall be limited to 10m.
• Mining shall be carried out in an environmentally friendly manner. All such mining operations shall be closely monitored by the NMA to ensure best mining practices are employed by all.
• An Artisanal Mining Licence shall be valid for such period, not exceeding 1 year and may be renewed for further periods not exceeding one year at a time.
• Tenure and Renewals shall be subject to the holder's fulfilment of the conditions required by the Mining and Environmental Regulations in force.
• The area covered by an Artisanal Mining Licence shall not exceed 5 acres. The area must not encroach on any other Mineral Rights Holders area without their permission.
• An Artisanal Mining Licence holder shall pay a prescribed rehabilitation fee to a rehabilitation fund that will be utilised to defray the cost of rehabilitation and reclamation of mined out areas.
• An application for an Artisanal Mining Licence shall pay all other fees before the issue of his Licence.
• An Artisanal Mining Licence shall be revoked if, (i) within a period of three months no mining operations have commenced under the said Licence or its renewal; (ii) the Holder fails to fulfil the conditions required by the Artisanal Mining provisions of the Mines and Mineral Act; and (iii) the holder contravenes any provisions in the regulations and Policy.
• The holder of an Artisanal Mining Licence shall be required to sell his proceeds to a licensed Dealer or Exporter only and not to another licensed miner. All such transactions shall be recorded on a sales card and produced for inspection by the Director of Mines or an Authorised Officer.

Support for artisanal miners

The Ministry of Mines and Mineral Resources says the Sierra Leone Government also intends to re-activate an assistance scheme aimed at helping artisanal miners to "restore rights of complete control over mining operations within their mining claims and become less dependent on the supporters who had hitherto usurped the powers of the miners due to the miners' inability to secure the high initial investment capital required".

"It is against this background that the Peace Diamond Alliance Project has been launched to encourage the formation of mining co-operatives that can be provided with mining equipment and machinery as well as food for work, required for the artisanal mining operation," the Ministry says.

"The project has been tried in Kono, and there are plans to extend to Tongo and other parts of the country."

The Peace Diamond Alliance Project has also started training artisanal miners in the Kono district in the art of valuing diamonds to enable them to negotiate the best market prices for their winnings when selling to dealers or exporters.

Requirements for small-scale mining

Under Sierra Leone's regulatory reforms, proposed small-scale mining companies must be a wholly-owned Sierra Leone Company registered in Sierra Leone under the Companies Act 2009, or a body-corporate incorporated in Sierra Leone with a minimum of 25% Sierra Leonean shareholding, preferably held by the Community in which the proposed mining area is located.

Key rules governing such companies include:

• All such bodies corporate shall be required to register with the NMA for approval to participate in Small-Scale Mining of Precious, Industrial, and Sand Based Minerals and pay the specified fees.
• An applicant for a Small-Scale Mining Lease shall be allocated available mining land (not encroaching on areas of other Mineral Rights Holders) by the Chiefdom Mining Allocation Committee before the grant of the lease by the Ministry.
• In addition to the registration, a company shall apply for a Small-Scale Mining Lease and must fulfil the conditions set forth for the application of the prescribed Licence.
• A Registered Mining Company with foreign participation may employ a prescribed number of expatriate workers to supervise the operations of the mining in the field. Such expatriate workers must fulfil the requirements of the relevant provisions outlined in the Local Content Policy and the immigration and labour laws of Sierra Leone before they are allowed to enter the mining areas.
• An applicant for the grant of a Small-Scale Mining Lease:
• Shall be accompanied by a plan of the area, over which the Licence is sought, drawn in such manner as the Director may require;
• Shall state the period for which the lease is sought;
• Shall give a statement with particulars of the programme of proposed mining operations, including the treatment method and the type of equipment/machinery to be employed in the operations;
• Shall submit to the Environment Protection Agency (EPA) and a copy to the NMA, proposals for progressive reclamation and rehabilitation of land disturbed by mining and for the minimisation of the effects of mining on surface water and underground water and an adjoining or neighbouring lands for consideration and approval before the commencement of any mining operation;
• Shall be accompanied by a report on the proposed marketing arrangements for the sale of the minerals (Precious, Industrial, and Sand Based Minerals) recovered.
• The area covered by a single Small-Scale Mining Lease shall not exceed 100 hectares and must not encroach on areas of other Mineral Rights Holders.
• An applicant for a Small-Scale Mining Lease shall pay all fees before the issue of the lease. l A Small-Scale Mining Lease shall be revoked if (i) within a period of three months mining operations have not commenced under the said Licence or its renewal thereof; (ii) the holder fails to fulfil the conditions required by the small-scale mining provisions in force; (iii) the holder fails to submit reports as outlined below.
• The holder of a small-scale mining lease shall be required to keep accurate records of all the winnings and sales/exports on site at all times and to submit every 6 months accurate technical records of the operations in the Licence in such form as may be prescribed. Records of winnings, sales and/or exports shall be submitted monthly to the Director of Mines through the NMA regional office on the 10th day of the succeeding month. These records shall also be produced for inspection by the Director of Mines or an Authorised Officer. Diamonds recovered in small-scale mining lease operations shall be exported through the NMA under the Kimberley Process Certification Scheme.
• Small-Scale Mining Companies shall not be allowed to buy any precious, industrial, and sand based minerals from miners or dealers, but may sell to Dealers / Exporters only after obtaining written permission from the Director of Mines or an authorised Officer.
• All renewals shall be granted subject to the holder's fulfilment of the obligations required by the Laws and Regulations in force. l A Small-Scale Mining Lease Holder intending to operate a dredge shall take out a dredging permit on payment of a prescribed fee.

Requirements for dealers

Dealers can apply for a prescribed Dealer's Licence on the recommendation of the Director of Mines and the approval of the Director General of the NMA, and after the payment of a prescribed fee. To be successful they must be registered to pay the country's Standard Assessment Tax.

An Applicant for a dealer's Licence is required to contribute to monitoring and rehabilitation funds.

A Dealer's Licence is issued for one year (with half-yearly licences issued in special circumstances) and renewal is subject to the dealer meeting performance targets set.

The Dealer is required to buy Precious, Industrial, and Sand Based Minerals only from an Artisanal or Small-Scale Mining Lease Holder and sell to any Exporter, and cannot buy from or sell to another Dealer. The Dealer must keep a record of purchases and sales of precious, industrial and sand-based Minerals acquired and to issue a numbered invoice/receipt for each purchase or sales transaction.

A Dealer must also submit monthly returns of purchases and sales to the Director of Mines through the NMA regional office.

Each Dealer can employ not more than five agents of Sierra Leonean nationality. On the recommendation of the Head of the NMA regional office, the Director of Mines shall approve a Buying Agent and issue a Dealer's Buying Agent's certificate on the payment of the prescribed fee.

Requirements for exporters

Export licence applicants can be individuals of any nationality or a registered company approved by the Minister of Mineral Resources on the recommendation of the Director General of the NMA. One-year Exporter's Licences are issued by the Minister of Mineral Resources on the payment of a fee of US$35,000 for diamonds, and US$7,500 for gold, and US$5,000 for industrial and sand based minerals.

Exporters can employ buying agents approved by the Director General of the NMA on the recommendation of the Director of Mines, and issued with the prescribed Exporter's Agent's Certificate. Not more than five (5) buying agent certificates are issued under one Exporter's Licence.

Exporters can open foreign currency accounts in accredited commercial banks in Sierra Leone to finance their operations and to dispose of funds freely, but must show evidence of importation of all foreign currency inflows, before exporting any (precious) minerals.

Incentives

A person who gives information leading to the arrest of smugglers or illicit dealers of precious, industrial and sand-based minerals is compensated with 40% of the value of the goods confiscated. The identity of informants is not disclosed.

Tourists who wish to purchase diamonds, gold, industrial, and sand-based minerals as souvenirs can obtain permission from the Ministry on the recommendation of the NMA for such transactions.

They can purchase and export diamonds to maximum value of US$1,000, gold to maximum value of US$500, and industrial and sand based minerals to maximum value of US$250.

Export duties shall be imposed in addition to a levy of 3% payable to NMA.