By Politico Staff writer
The Sierra Leone Extractive Industries Transparency Initiative (SLEITI) Multi-stakeholder Group (MSG) has completed a nationwide dissemination of the 2020 and 2021 EITI Report following its publication in May this year.
The dissemination according to SLEITI officials is an approach designed to ensure that stakeholders are engaged in a dialogue about natural resource revenue management and to discuss the positive contribution that mineral resources make to the economic and social development of the country.
The report highlighted disaggregated data by individual project, company, government agency, and revenue stream, in addition to legal and institutional frameworks, production and export data, and the contribution of the extractive sector to the economy. According to the report, the total revenues generated from the extractive sector amounted to USD 53 Million and 71 million respectively in 2020 and 2021. The report indicates that tax revenues represented approximately 98% and 95% of the total revenues collected in 2020 and 2021 respectively. A notable feature of the report suggests that surface rent paid by extractive companies to sub-national agencies accounted for less than 1%.
Analysis of production data in the report indicates that mining production has increased by more than 70% between 2021 and 2020 to the tune of USD 673 million in 2021. This was notably through iron ore Marampa Mines Limited produced in 2021 and the price increase of most mineral commodities. Export value also increased to 82% between 2021 and 2020 reaching USD 577 million in 2021; the report notes. This according to the report was a result of iron ore exported by Marampa Mines in 2021 and the increase of diamond and rutile.
In 2020, the report indicates that the extractive sectors accounted for 0.5% of GDP, 60% of exports, and 10% of total revenue; while in 2021 it contributed 1% of GDP, 61% of exports, and 11% of total revenue. According to the report, ten government agencies were required to disclose revenues received from extractive companies in addition to 17 companies in 2021 that met the materiality threshold of USD 450,000.
One of the recommendations proffered by the report is to extend the scope of EITI reporting to all revenues collected from the forestry sector; to strengthened approaches that will gradually embed the process of mainstreaming EITI reporting by government and companies; and National Minerals Agency and Bank of Sierra Leone to work together to harmonise their data to prevent ambiguity of reference.
The Programme Manager of SLEITI Mohamed Fanando Conteh told Politico that in order to ensure stakeholders are familiar with the report; the SLEITI MSG led by the Minister of State Vice President Office Mrs. Manty Tarawalli implemented a nationwide dissemination of the 2020 and 2021 EITI, funded by the government of Sierra Leone. The exercise he said was held in Portloko and Tonkoili Districts for communities in the North, Northwestern Regions, Kono and Kenema in the East, and Bo and Moyamba for the southern province, in addition to the Western Area.
In each district, the dissemination exercise brought together representatives from youth groups, paramount chiefs, government officials, members of Parliament, landowners, the security sector, religious bodies, the chamber of mines, and a network of various civil society groups.
Addressing participants in Moyamba district, after expressing concerns mostly related to water pollution by companies, land reclamation, unregulated and illicit artisanal mining and equitable distribution of revenues generated from the sector proceeds, and ineffective monitoring mechanisms to curb harmful and irresponsible mining activities, the Minister of State and MSG Chair said she was pleased that the stakeholders used the platform provided by SLEITI to express their concerns regarding the operations and activities of companies in their various communities. She admitted that the concerns were indeed legitimate and that the government will continue to review its policies and legal frameworks to address their concerns.
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