Answer, president Koroma: Yeah the issue of the blood diamond is an issue of the past. And this was when the war was raging, and before the war. But now we have put in place new mining act controls to regulate the mining sector.
The above is an excerpt of an interview conducted by CNN/African Voices with MR. Ernest Bai Koroma.
The issue of blood diamond can only be "an issue of the past" if and only if regulations, laws intended to protect the social, economic, cultural, legal and environmental rights of the citizens of Sierra Leone in the mining sector, are, regardless of the company involved, correctly and fairly executed. No company should be given special concessions at the expense of those rights. This is a matter of principle. Principle s can be either wholly kept or wholly sacrificed. The slightest concession on matters of principle means the abandonment of that principle.
While structures such as the Presidential Task Force, the Strategic Policy Unit, the Anti Corruption Commission, the Income Tax Act of 2000, the Law Reform Commission etcetera have been put in place to enhance reforms that would ensure that the country benefits most from its already hugely depleted mineral wealth, it came out that the said structures are yet to display much seriousness in fulfilling their all-important mandates. There are Concerns that although political will seem to be there, but that undue priority is been given to attracting investors of all sorts, rather than striving to change the resource-curse syndrome, thereby meeting the expectations of the electorate and the suffering masses
In as much as the 2009 Mines and Minerals Act has the potential of changing the history of mining in the country, the continued violation of some of its crucial provisions to so-called attract investors who often turn out to be economic criminals, is undermining the very act and at the same time treating the laws of the land with disregard.
The illegal tax concessions granted to corporate entities such as African Minerals Limited and London Mining Plc coupled with the inhumane treatment meted by mining companies on persons affected by their operations, diametrically opposed to MR. Koromas idea of blood diamond being "thing of the past".
It is of considerable concern that the Mines and Minerals bill which was hurriedly enacted into an Act on the pretext of taking it to the investment forum in London has so many missing clauses and inclusion of some provisions that make it stand a greater potential of losing its value.
The excessive powers of the Minister of Mineral Resources and Political Affairs and his Director, coupled with the absence of an oversight role of the Mineral Advisory Board in executing the Act, which has been some of the major concerns for civil society groups even before the bill was enacted into an Act, are some of the contributing factors responsible for signing reckless mining agreements that do not conform to our national legislations.
This will certainly create room for corruption, unaccountability and non transparency in the mining sector. It is sad to note that the little good things in the Act are on the verge of being eroded into extinction.
The heavy tax concessions offered to London Mining in the agreement especially in relation to income tax and the manner in which the royalty is calculated...which is not in line with the current Mines and Minerals Act, set a bad precedent for subsequent negotiations and renegotiations of other mining contracts and have the potential of undermining the country's national development agenda.
The Government of Sierra Leone has a constitutional responsibility and a moral obligation to protect and promote the interests of the citizenry, it is therefore urgently crucial that the government ministries and departments use existing legislations as a tool to immediately stamp out these unproductive and inimical practices to avert a looming crisis of high proportion.
Effective management of mineral resources is seen by analysts as crucial to the country's stability. The fight for control of the diamond areas in the east was a major factor behind the 11-year civil war. In the civil war of the 1990s, rebels in Sierra Leone went into battle singing "Mr. President, where are our diamonds?" Years after the end of hostilities that claimed 50,000 lives and rocked a fragile region, Sierra Leone faces new tensions over its resource riches. This time around, the controversy surrounds not only diamonds but also iron ore.
The mistakes of the past should not be repeated. Our resources should not, in any way, be a curse to us again. Let the issue of "blood diamond" be an issue of the past. That is why the way forward is to refrain from all those anachronistic, selfish and retrogressive practices that sowed the seeds for the "blood diamond engineered civil war".
Mining is the mainstay of the economy in Sierra Leone, one of the world's poorest countries where illegal "blood" diamonds financed a 1991-2002 civil war.
The mining sector accounts for 90 percent of the country's exports. A number of international companies operate in the country, mining diamonds, rutile, and bauxite and iron ore. The two biggest direct investors in Sierra Leone are mining companies -- UK-listed Titanium Resources Group, which mines rutile and bauxite, and Koidu Holdings SA, which is a kimberlite diamond operation. Koidu Holdings is 65 percent owned by global private resource group BSG Resources Ltd and 35 percent by Magma Diamond Resources, a subsidiary of Geneva-based Beny Steinmetz Group.
The government, while not disrupting the operations of legitimate investors, should root out corruption and stop illegal mining firms which are not conforming to the rules and regulations of the mining sector. In as much as ensuring to get the maximum for our deposits, the proceeds from the resources should trickle down to the people in the form of tangible and substantial development.
As critic of the mining industry, I therefore call on the Government to hold the mining companies accountable instead of being an accomplice in an act that exploits the country's mineral resources and creates death traps for the people instead of liberating them from hunger, illiteracy, vulnerability and other social problems
It is no hidden fact that Companies are increasingly recognizing that improving their own impacts and addressing wider social and environmental challenges of the communities they operate in will be crucial in securing their long-term success. This corporate-societal relationship is commonly referred to as CSR. The concept can be traced back to the mid-1950s when Bowen (1953) formally stated that CSR refers to "the obligations of businessmen to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society. The World Business Council for Sustainable Development (WBCSD) in its publication "Making Good Business Sense" (Richard Holme and Phil Watts, 2000), defined CSR as the"continuous commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large".
The laws are however silent on the social responsibilities of the mining Companies towards the communities in which they operate. In fact, there is no national policy framework that guides the implementation of CSR in Sierra Leone. Mining Companies are therefore not bound by law to implement CSR activities in the country. In other words, CSR activities are undertaken more in response to moral convictions rather than legal obligations.
Sustainable development through CSR can only occur when local communities become active development partners rather than passive recipients of philanthropy.
Mining towns are very vulnerable to fluctuations in the mining industry's fortunes. For example, the closure of mines and the resultant loss of economic activity can be distressing, including the legacy of environmental damage, the loss of jobs leading to high local unemployment and associated problems, the impact on residential property values and the effects on infrastructure originally provided by the mining companies (Laurence, 2006). Heavy dependence on mining links strongly with a wide range of serious social problems such as high levels of poverty, low levels of education, and poor health care. Immediately a new mining operation starts up, local communities often view it as an opportunity to be exploited, to be provided with resources and infrastructure that will enhance their Welfare.
However, many of the social opportunities provided by CSR activities border on creating a culture of dependency on a reducing asset with a finite life, which is an unsustainable process (Auty, 1998). The environmental damage caused by mining may result in the loss of land for other economic/livelihood uses (e.g. agriculture) which leads to greater dependency on the mine. Communities that are affected by mining operations, either by loss of land and livelihoods or the need to relocate are dependent on mining companies for payouts to remediate this damage. This leads to the imposition of a handout dependency. The social and environmental impacts of mining also undermine women's ability to sustain their livelihoods, especially that they are unlikely to receive direct employment from the mine.
Some suggestions:
To begin with, the mistake of the past, whereby the mining companies, with the cooperation of the then local and national leaders, seek the communities' favor with philanthropy and short-term gifts, should not be repeated. Long-term sustainable development initiatives for mining communities should be the new incentives.- The Government of Sierra Leone as a matter of urgency should revise and adopt adequate policies focused on improved industrial competitiveness with strong emphasis on technological transfer, innovation and improved environmental management. For example, since most mining activities are increasingly located in remote and depressed areas, their presence in these regions should be seen as a powerful avenue for transferring skills and technologies to these localities especially for the youths and women. Effective public policies, support and monitoring of private mining investment by well-organized government institutions are urgent policy measures for successful CSR in Sierra Leone
- Setting up of Mining Common Fund to support and develop mining affected areas.
- Inclusive planning and decision-making, particularly at the preliminary stages of mining activities (when massive community displacements occur) through the final stages must be encouraged with particular emphasis on the need for effective communication at the local levels. The role of District Assemblies and community organizations in the design, implementation and enforcement of mining laws must be reinforced. This will help to improve trust among stakeholders and minimize conflicts and tensions.
- The mining industry's sustainable policy goals should not only seek to achieve economic and environmental improvement but also to meet the needs (livelihoods, socio-economic services, etc.) of communities living adjacent to mines and mineral processing plants. This should include a mandatory provision for mining companies to set aside a percentage of their profits for the development of the communities in which they operate.
- There is a very fine line between CSR that creates dependency and CSR that develops a community or region in a sustainable way. The challenge for mining companies therefore is to develop CSR programmes that maintain good will for the company and address the long-term developmental needs of communities in a sustainable way, without creating a culture of dependency. Brief case studies of mining in South Africa and Zambia suggest that there are still important gaps between mining companies' CSR activities, on the one hand, and accountability and fairness, on the other. The conclusion is that companies' CSR-related claims, and particularly the reference to a business case for voluntary initiatives, need to be treated with caution. CSR is not necessarily or only greenwash, but there is a need to engage business critically towards more sincere versions of CSR
- Mining companies should not only fulfill their social and environmental responsibilities, but they should also actively support sustainable development - beyond philanthropy and impact mitigation. Partnerships between companies, the government and civil society should therefore be introduced as a potentially effective and efficient strategy for CSR. They are no panacea, however, and require a commitment to local communities' rights to informed prior consent and authentic participation.
- Incessant pressure should be constantly exerted from Non-Governmental Organizations (NGO's) and civil society groups on the need for mining companies to adopt effective corporate social responsibility (CSR) policies and commit more resources to the development of communities in which they operate and to the sustainable development of the country as a whole.
- The government should try to check mining licenses and their status and increase its role in the mining sector dominated by foreign operators in order to guarantee national interests.
- Even though we are in dire need of capital and know-how from foreign investors, we should not allow them to outsmart us for fear of losing their investments. We should seek to form joint ventures, whereby the government, the civil society and investors will sit on the board to develop and improve the mining sector together.
- The government should crack down on those firms mining without mining licenses. Some people say they are exploring but they are mining. If they are mining (without licenses) they are cheating and they should face the full penalty of the law.
- The social, economic, cultural and environmental rights of the people of Sierra Leone should not be traded off for any foreign capital or know-how.
- Corruption among government civil servants in the mining sector should also be targeted. There are lots of fake contracts and inflated contracts floating all around the place.
Companies and Organizations linked to Mining in Sierra Leone
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