Sierra Leone could be the new jewel in Africa’s crown
According to figures released by the OECD* on May 27, the mining sector has had a massive impact on GDP*, with
the country seeing a real GDP growth leap from 6% in 2011 to 16.7% in 2012. It is projected to stabilise in 2013
and 2014. Additionally, Sierra Leone has risen eight places in the latest World Bank report ‘Doing Business’, and
ranks as one of the top reformers since 2005 in improving business regulation for domestic firms, property
registration and “narrowing the distance to frontier”. Iron-ore projects are seen by analysts at the OECD as being
the key contributor to GDP growth, and it is the expansion of the extractive sector that is perceived as initiating a
transformation of the economy.
There is a long tradition of mining going back to pre-colonial times ranging from the diamond industry to in more
recent times rutile and iron ore. In particular, iron ore has seen a huge amount of inward investment and the
infrastructure development associated with that has been pretty amazing. I have been travelling to Sierra Leone
since 2003 and the changes that I have seen in the country have been phenomenal.” McGloin explains his view is
that there is still a huge amount of potential in Sierra Leone as it has not seen vast exploration outside iron ore
and mineral sands. He adds: “There’s quite a bit of gold exploitation; we are just putting into operation the
country’s first formal gold mine. The geology of the country is not dissimilar to South Africa and Botswana and, in
theory, this should stimulate inward investment as there is a highly prospective geology.
There are positive nickel deposits and copper and platinum associated with mid-oceanic ridges and abductive
material. Basically, what you have in Sierra Leone is the right geology but none of the mining services industries in
any significant sense. In my view, it’s a mining boom waiting to happen but you need to get the explorers in as the
reality is, if you don’t look, you don’t find, and if you don’t find, you don’t build.”
→Diamonds were first discovered in Sierra Leone in the 1930s in Kono District in the east. The nation is renowned
for the exceptionally high quality of its diamonds and the discovery of some spectacularly large stones. The
largest diamond ever discovered was in February 1972, ‘Star of Sierra Leone’, weighing 969.8ct. Other major
discoveries include the three stones discovered in 1996, weighing 188ct and 283ct, and the 500ct boart.
Before 2007, kimberlites were only known to exist in eastern Sierra Leone. However, major exploration by African
Minerals (then the Sierra Leone Diamond Co) resulted in the discovery of a kimberlite in the Lake Popei project
area in the south in 2007. This was the first kimberlite to be discovered in this part of the country. Elsewhere in
the country, high-priority targets with positive kimberlitic grains have been identified in the north, including
Kamakwie and Kabala. The company also exported a total of 18,071ct of alluvial diamonds with gross sales
proceeds of US$8.5 million from the Konama alluvial project in Kono.
The commissioning of a new 180t/h diamond treatment plant in 2012 by OCTEA Mining (Koidu Ltd) has seen a
rapid increase in production figures from a monthly average of 10,000ct to 30,000ct. The total diamond export for
2012 was 541,166ct, valued at US$163.2 million, with an average price per carat of US$301.6. The total artisanal
production was 245,831ct, valued at US$80.54million, accounting for 49.35% of the total export. The total
kimberlite production was 295,335ct, valued at US$82.66million, representing 50.65% of total export. Export
values for 2012 exceeded that of 2011 by 31.45%, an improvement of US$39 million. African Minerals started
production on its Tonkolili iron-ore project in the north in Q4, 2011. Tonkolili, with a JORC-compliant resource of
12,800Mt and a mine-life of over 60 years, is expected to be developed in a number of phases. The US$1.7billion
development of Phase 1 is fully funded and is expected to produce 20Mt/y of direct-shipping iron ore at full
capacity.
GLOSSARY
OECD: Organisation for Economic Co-operation and Development. International organisation helping
governments tackle the economic, social and governance challenges of a globalised economy.
GDP: Gross Domestic Product is the market value of all officially recognized final goods and services produced
within a country in a given period of time.
Responda en castellano las siguientes preguntas:
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How much did de GDP grow between 2011 and 2012?
How many places has Sierra Leone risen in the latest World Bank report ‘Doing Business’?
Which projects are seen are seen by analysts at the OECD as being the key contributor to GDP growth?
What is the expansion of the extractive sector perceived as?
What industries and ores does the long tradition of mining range between?
How long has the writer been travelling to Sierra Leone?
Why does McGloin think that there is still a huge amount of potential in Sierra Leone?
Is the Geology of the country similar to that of South Africa and Botswana?
Why should this stimulate inward investments?
Does Sierra Leone have any mining services industries in any significant sense?
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