Partnerships to Restore Minerals Policy and

Institutions in a Post Conflict Country

Sierra Leone

Agenda• Brief introduction to the project• Perspectives• The origins of the project• Partnerships• Overview of artisanal mining in Sierra Leone• Constraints to the restoration of policy and

institutions • What have the partnerships achieved?• What more do we intend to achieve?

Introduction• Two-year DFID funded project in Sierra Leone to

provide technical assistance to the Ministry of Mineral Resources (MMR)

• Purpose: To strengthen the efficiency and capacity of the MMR to achieve its mandate

• Activities include day-to-day management support, policy development, legal and regulatory reform, strengthening functions

• Focus is on implementation and not analysis/theory

Our perspective?

Our perspective

Sierra Leone top performer in West Africa

Sierra Leone

• Small country in West Africa• Gained independence from

Britain 1961• Abundant natural resources

include rutile, diamonds, bauxite, gold, iron ore, platinum

• Security and stability a major success following end of war in 2002

Origins of the project• Management and Functional Review of MMR

conducted by Public Sector Reform Unit (PSRU)• DFID Diamond Sector Project• DFID Security Sector Project• DFID support to United Mineworkers Union

(UMU)• Strategic and Environmental Assessment (Gary

McMahon, 2007)• Request from previous President for an

expatriate Director General

PartnershipsGovernment:

MMR, PSRU, HRMO, Office of the President,

GDO, NRA

Donors: DFID, World Bank, EC, UNDP, USAID

Membership organisations: United Mineworkers Union,

Chamber of Mines

Artisanal mining• Artisanal licenses:

– 2006: 2,184 licences; 2007: 1,968 licences– Only available to Sierra Leoneans– Estimated to be 2,000 unlicensed

• Estimated to be 150,000 to 300,000 artisanal miners (grassroot diggers)• In 2006 artisanal miners produced approximately 80% of the country’s

diamonds• Artisanal licenses are not having the desired effect on the market• Most grassroots diggers living in poverty• Lack of engagement between large-scale mining companies and

communities and artisanal miners• Sometimes confusion between LSM, exploration and prospecting

licenses and ASM licenses

Constraints to restoration of policy and institutions

• The loss of technical expertise across the organisation but particularly within the Mines Division

• Lack of policy implementation: Core Mineral Policy, Strategic and Environmental Assessment (Gary McMahon, 2007)

• Weak or lack of regulations • The weak linkages between the regional offices and

headquarters• Ineffective monitoring and compliance of precious

mineral trading

Realising potential requires:• Government organisations with capacity to attract and retain

professional, technical staff• Public servants with the incentives required to govern the sector

better• A separation of policy from implementation• A clear legal and regulatory framework with the capacity to

enforce• Mining companies meeting their social and environmental

obligations• Government organisations willing to engage and respond to

stakeholders• Mining communities seeing tangible benefits of mineral

production

What have the partnerships achieved so far?

• Major institutional reform proposals being debated by Cabinet

• Review of mineral rights is a transparent process• MMR mindset is shifting away from fire-fighting and towards

economic and social policy• MMR communicating better with civil society• Improved communication between MDA’s involved in

minerals governance• Chamber of Mines established• Diamond Area Community Development Fund “unblocked”• United Mineworkers Union on path to becoming sustainable

Better stakeholder engagement

www.slmineralresources.org

What else do we intend to achieve?

• Policy implementation• New legislation• New regulatory framework including new

artisanal mining and trading regulations• Institutional reforms approved and implemented• Ministry has capacity to perform functions• 4 points above have had positive and

sustainable impact on artisanal mining• Test of partnership effectiveness = CASM 2009

Thank you