The total sum of NLe1, 559, 732, 19 was paid on Friday 10th February, 2023 by Koidu Limited as surface rent to beneficiaries of the land on which the company is carrying out their mining activities in Kono District.
The rent is cascaded to include the following beneficiaries: to the Constituency Development Fund, Koidu Limited allocated 10% which is equivalent to NLe155, 973.22; Koidu District Council was allotted 5%, which translates to NLe77, 986.61; to the Koidu New Sembehun Council was allotted 10%, equalling NLe155, 973.22.
The surface rent paid by Koidu Limited also impacted PC Paul N. Saquee V, who received 15%, equivalent to NLe233,959.83; to the Tankoro Chiefdom was given 10% of the allotted funds, which equalled the sum of NLe155,973.22 and; ending with the Tankoro Administration – Land Owning Families, that received 50% of the rent, totalling NLe779,866.09, for a grand total of NLe1,559,732.19.
This annual payment of surface rent by Koidu Limited, according to Mr Turay, Head of Corporate Affairs, is pursuant to not only the mining laws of Sierra Leone but also to international best practice relative to empowering communities where mining interest operate to encourage sustainable development in these localities.
The beneficiaries we spoke to were very pleased with Koidu Limited and say the company continues to inhabit a very special place in their hearts as the company always comes out on time to pay their surface rent. They hope this will continue and other mining interests will follow suit.
“The total sum of NLe1, 559, 732, 19 was paid on Friday 10th February, 2023 by Koidu Limited as surface rent to beneficiaries of the land on which the company is carrying out their mining activities in Kono District.”- The Calabash
I am glad that the Mining companies are paying some monies to the communities in which they are operating.
As happy as we may be, I am a bit wary about the amount. We do not know what the amount that is gained from mining of Diamonds by the Mining Companies per year in these communities. It is important to note that the Diamonds mined are exported and sold in Millions of Dollars, and since there is no information from the Mining Company or Government about the annual turnover of each of these mining companies, I am afraid to state that what is paid as Surface Rent to the Communities might be less than 0.005% of the annual amounts for the minerals that are exploited in these communities.
Let us do a small mathematics with this year’s fees for example. It is reported that Koidu Limited paid NLe1, 559, 732, 19 as surface rent to the following beneficiaries: to the Constituency Development Fund, Koidu District Council, Koidu New Sembehun Council, PC Paul N. Saquee V, Tankoro Chiefdom, Tankoro Administration and the Land Owning Families.
However, at today’s exchange rate, NLe1, 559, 732, 19 is equivalent to just USD78, 523.30 (seventy eight thousand five hundred and 23 new Leones). Yes you heard me right, just 78,500 United States Dollar is paid as yearly Surface Rent for a Mining company that is ravaging and exploiting Diamonds worth Millions of Dollars for an entire year from these communities. Is this not laughable? This article stated the land owning families received 50% of the money paid. That is about 39000 USD. If there are 20 Land owing families, it will amount to less than 2000 US$ per family.
My suggestion is that citizens from these communities should endeavour through the Right to Access Information Commission to get Information from the Mining Companies or government on the Yearly income accrued by the Companies from the Diamonds exploited and the yearly Surface Rent should be calculated based on a percentage that is in the Mining Agreement. It should be transparent and not opaque as it is presently.
Good move but I want know what is the sals agreement between our Government and the compan?