By Foday Moriba Conteh
A strongly worded letter from British Investor, Alex Preston, to the Mines Minister, Timothy Kabbah, with copies sent to various sectors challenging the controversial cancellation of the mining license of Sierramin Bauxite Limited has opened a diplomatic can of worms to the extent of straining Sierra Leone British relationship.
British Investor, Alex Preston, states that it is rather surprising and disappointing over the letter of 7th December 2021 from the Ministry of Mines and Mineral Resources cancelling the Mining License (ML 1/2016) and the exploration license EL16/2014.
Preston noted that the Parliamentary Committee on Mines had objected such cancellation until further background information was done to find reasonable and justifiable basis for such cancellation.
The letter was very direct about the fact that an estimated 35USD million has been invested into the Port Loko Bauxite project via Sierra Bauxite Holding Limited predominantly by British citizens.
The opening line of the letter expressing surprise and disappointment is understandable when one considers the lame reason provided by the Mines Ministry and National Mineral Agency about purported non-compliance issue on the part of Sierramin Bauxite Limited that is not plausible as pointers provided in the referenced letter can deflect such bogus claims.
The background details provided by British investor, Alex Preston, cannot be disputed. This medium will cite some of these details to illustrate that in-spite of the double effects of Ebola and COVID 19, Sierramin Bauxite Limited has been active on the ground in works that are compliant consistent.
Alex Preston’s sequential detailing of tangibles are here highlighted: exploration work started in 2014 in all three license areas. This was subsequently delayed by the outbreak of Ebola in late 2014 to 2015.
At the recommendation of the previous Government in late 2015, SBL applied to convert EL/2014 into a large scale mining license ML 1/2016. This was granted on 7th September, 2016. The licence ML 1/2016 was subsequently ratified by the Government of the Republic of Sierra Leone on 6th December, 2017.
In mid-2018, SBL received significant investment interest primarily from China. Conditions for investment included a Mineral Resource Estimate by a specified Consultant and bulk sampling from key exploration areas. The specified MRE Company was appointed in 2018.
To execute bulk sampling and increase the universe of potential buyers for the Port Loko project, a pilot plant was procured in August 2018. This delivered, installed and commissioned in the first half of 2018.
With all preliminary work done by November 2019, a meeting in China resulted in a Memorandum of Understanding, being signed on the 8th January, 2020. The MOU was predicated on 1m metric tonne (MT) of bauxite in 2020 increasing to 4.5 from 2021. The investment was dependent upon the investor being able to visit the project. Unfortunately, scheduled visits were delayed on multiple occasions due to COVID travel restrictions in China and, subsequently, in Sierra Leone.
The letter stated further that prior to signing the deal in 2021, SBL evidenced proof of funds and since 2021 Devon has been committed to the Port Loko project in time and resources. The British investor added that the company quickly identified that the original port at Tholyem would limit to less than 2.5mt and an alternative port has since been identified that would allow the project to scale up to an annual production of 10 MT. This significantly increases the value of the project to the local communities, the Government of Sierra Leone and stakeholders of SBL.
Now, the project background information exposing the trump-up lies to justify a roguish cancellation of SBL license makes an important point to consider. Despite the 2021 COVID related travelling restrictions which have prevented visits from off-takers, Devon has proven its ability to travel to Sierra Leone and continue to progress this important project.
This medium is categorically stating that these are irrefutable facts that expose the Ministry of Mines and Mineral Resources working in cahoots with the National Minerals Agency to have made allegations about Sierramin incapacity to develop the Port Loko project.
With the lies sufficiently exposed, we can turn to the grave implication of national disservice bordering on illogical decision that the British investor brought out in his letter.
He writes: “the alternative approach of assigning SBL licence to another entity is without logic as it is going to delay the project by another three years with no guarantee of the same level or indeed any success for the new party.”
The aforementioned argument is further strengthened by the fact that any new entity to whom the SBL licence is transferred would have to undertake a fresh exploration, embark on community land base exploration and application for Environmental Impact Assessment study. And this is all before the Government’s ratification of the new licence, which would materially disadvantage all stakeholders.
So why would a genuine regulator of the sector disregard all of these implications to risk a legal and diplomatic row with the British Government whose citizens have invested a whopping 35 million dollars in this project?
The answer is simple: both NMA and Mines Ministry have been allegedly bribed by the new party. It is fact that scarcely when the SBL licence was cancelled in September last year, Vimetco that wants the Port Loko asset flew the Mines Minister, Timothy Kabba and Director of NMA, Julius Mathai, to Russia. It is safe to suspect that bribe was paid to the two Government officials to have them do the desperate and illogical that is patently self-serving and anti State.
This letter has reached the UK House of Commons and the British Embassy here in Sierra Leone. It suffices to say that Sierra Leone is embarrassed in diplomatic relations with Britain. A British citizen has been bullied by few people working in Government. There is a looming threat that the situation is even going to put Sierra Leone in difficulty with the British Government especially if timely remedy is not effected to review and reverse the license cancellation of SBL.
The people of Port Loko have spoken their minds in a letter addressed to President Bio late last year that they endorse SBL operations. Now information in the possession of this medium contains that the people of Port Loko are threatening to resist any other company because of the simple fact that such an effort means a derailing of their socio-economic livelihood.
The complications arising could have been avoided if Julius Mathai and Timothy Kabbah listened to the sagely caution of Lawmaker, Saa Emmerson Lamina who still represents the hope of clearing the mess to save the image of Sierra Leone, guarantee cash returns for the Government and people and of Sierra Leone and avert the past mistakes of litigations that other companies resorted to seek redress when bullied in similar fashion.
Common sense can save this situation from creating an unfortunate situation to affect this Government’s good reputation in dealing with investors with good intentions.
