Mineral Resources: What Can Sierra Leone Offer You?
- Traditional strength in mining
- Opportunity to add value in finishing diamonds
- Opportunity to profit from supporting Sierra Leone’s construction boom
- Government efforts to improve the investment climate for the mining industry
1. Traditional strength in mining: Before the war, mining accounted for 20 percent of GDP, 90 percent of registered exports, and 14 percent of the workforce. Investors can capitalize on this strength to either expand current production, add value in the production process, or to rebuild infrastructure required to engage in large-scale mining.
Below are links to a list of the key players in the mineral resources industry and a map of the country’s known deposits.
Key Players in the Mineral Resources Sector
Map of Known Mineral Deposits
2. Opportunity to add value in finishing diamonds: The diamond industry, which in the past accounted for the bulk of Sierra Leone’s foreign exchange earnings, has undergone considerable regulatory change in response to implementation of the Kimberley Process—designed to ensure that illicitly mined diamonds do not reach export markets. Some analysts suggest that the current level of exploitation is near its peak potential. Estimates of alluvial diamond production range from 250,000–400,000 carats a year for the next 5–10 years, which is significantly lower than in 2007 (see table below). Although Sierra Leone lacks the expertise to cut and polish diamonds, finishing is a potential value added investment opportunity.
The Ministry of Mineral Resources maintains statistics on the sector. Production volumes are from 2004–2008 are listed below:
| Period | Bauxite (metric tons) | Diamond (carats) | Gold (ounces) | Ilmenite (metric tons) | Rutile(metric tons) |
|---|---|---|---|---|---|
| 2004 | -- | 693,100 | 860 | -- | -- |
| 2005 | -- | 668,810 | 1,690 | -- | -- |
| 2006 | 1,071,140 | 582,330 | 2,280 | 13,820 | 73,600 |
| 2007 | 1,169,040 | 603,700 | 6,820 | 15,750 | 82,810 |
| 2008 | 954,370 | 371,290 | 6,290 | 17,260 | 78,910 |
| Source: Bank of Sierra Leone Annual Report 2008 | |||||
3. Opportunity to profit from supporting Sierra Leone’s construction boom: A postwar construction boom has fueled investment in product manufacturing involving domestic minerals. Notably, in 2006 the $5.4 million Sierra Block Factory, a joint venture between Sierra Leone and a private investor from Ghana to make cement products, was established. This investment expands capacity for cement production, replacing a factory that operated before the war.
4. Government efforts to improve the investment climate for the mining industry: The mineral resources sector is one of the biggest beneficiaries of the government’s push to improve the investment climate. Because the companies in this industry are some of the longest established, the win when new laws and regulations are passed.
For more information, contact us at investmentpromotion@sliepa.org.
To access a mineral resources sector profile, go to downloads.