By Diana Kinch
LONDON--Government officials in West Africa's Mano River Union,
consisting of Sierra Leone, Guinea, Liberia and Ivory Coast, are
holding discussions to harmonize mining codes and laws relating to
tariffs and taxes at the regional level in a move to protect
investors in the mining industry, Sierra Leone's mining minister
said Wednesday.
The cooperation aims to ensure "disparity and imbalance won't
arise," Minister Minkailu Mansaray told Dow Jones Newswires on the
sidelines of the West Africa Mining Investment Summit in London.
Recent changes in Guinea's mining investments code may have led to
imbalances, according to the minister.
West Africa is rich in mineral resources including iron ore,
bauxite, gold and manganese, which the region is seeking to develop
with international investors to boost local development and reduce
poverty. However, political and tax changes, together with the high
costs of developing infrastructure such as ports and
railroads--which may involve bilateral cooperation--have thwarted
some investment.
"Sierra Leone's issue of concern is the need to protect the
investor and to create an environment where government and people
should participate in a dialogue on creation of mine projects," Mr.
Mansaray said. "We believe we need some changes."
A spokeswoman for Guinea's mining ministry had no immediate
comment on the talks. The development of Guinea's massive Simandou
iron ore deposit, where investors include Rio Tinto PLC (RIO.LN),
Vale SA (VALE) and BSG Resources, has been slowed by infrastructure
hurdles, partly because the most efficient shipping route to the
export market could be through neighboring Liberia, which would
involve international cooperation and the rehabilitation of
existing railroads.
Amadou Baba, the mining minister of Mali, told Dow Jones he
expects that West Africa would become an important iron ore
producer "within five to 10 years. The problems are more
infrastructure, railways and power supplies than politics," he said
on the sidelines of the summit.
Sierra Leone is also developing a National Minerals Agency to
act as an industry regulator and directly support the country's
poverty reduction strategies, the new agency's director general
Sahr Wonday said at the event. The plan to is ensure mining
contributes $1.5 billion to the country's targeted annual gross
domestic product of $5.8 billion by 2015, he said.
The agency will "ensure all diamond trade is in accordance with
the Kimberley Process, will introduce a precious minerals trading
act this year and will cooperate with the Ministry of Trade to
implement Sierra Leone's local content legislation and policy.....
to give preference to (use of) materials and products made in
Sierra Leone," Mr. Wonday said.
Sierra Leone's royalties on the sale of mine products are set to
remain unchanged at 5% for precious metals, 6.5% for diamonds and
3% for other minerals including iron ore, he said.
London Mining PLC (LONR.LN) is currently ramping up an iron ore
mine in Sierra Leone and Amara Mining PLC (AMA.LN) is planning to
start a gold project in the western African nation, the Sierra
Leone minister said.
Write to Diana Kinch at diana.kinch@dowjones.com
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