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Summit Communications:
In late June, the country hosted the Conference
on Disarmament, Demobilization, Reintegration
and Stability in Africa; U.N. Troops are
set to leave, giving the clear indication
that the international community has full
confidence in the durability of the peace
here. Minister Deen, please share your thoughts
on the country's newfound stability with
the readers of the New York Times?
Honourable Alhaji M.S. Deen: Stability
is in place. You only need look at the number
of visitors and potential investors coming
to the country to see this. You can travel
to any part of the country at any time of
the day or night. Five years ago this wasn't
possible. Last week alone, two major potential
investors came to express their interest
in setting up an alumina refinery which
is needed for the production of aluminium.
An alumina refinery would add value to the
ample resources of bauxite that we have
in this country, which for now we are just
mining and exporting. The head of the Koidu
Kimberlite Project, Mr Roy Oron also came
to confirm their commitment to Sierra Leone.
He saw his Excellency the President and
is interested in other fields of mining.
Summit Communications:
Although in the international and public
mind, diamonds in Sierra Leone are still
associated with conflict, the reality has
changed, thanks to reforms like the Kimberly
process your sector is helping to consolidate
the peace in the country. I would like to
quote you from the Antwerp-Africa diamond
day seminar. You said: "The success
of the Kimberly process should not only
be judged by the significant increase in
revenue from legal export, but the full
co-operation and commitment of importing
states and other institutions. Without such
cooperation and commitment, there can be
loopholes in the scheme. It is expected
that through international participation
in the Kimberly process where every exporting
and importing authority is committed, loopholes
would surely be reduced." Minister
Deen, we are keen to understand your vision
of how the Kimberly process has been implemented
here and internationally.
Honourable Alhaji M.S. Deen: I will go
back a couple of years, before the Kimberly
certification Scheme. At the height of the
rebel war in Sierra Leone, the UK and the
US supported a UN security resolution forbidding
all states from importing diamonds from
Sierra Leone without a certificate of authority
from the government. So our own certification
scheme started in October 2000 and continued
until January 2003 when the Kimberly Process
began. The Kimberly Process was started
by a few African diamond-producing countries
headed by South Africa with the support
of several countries such as the US and
the EU countries, crucially as the diamond
centre for Europe, Belgium also signed up
to the process. With the collaboration of
almost the entire world, our legal exports
have risen very sharply. The government
has also implemented a number of reform
measures or policies taking a carrot and
stick approach. For instance, if someone
made a report about the illegal possession
of diamonds and smuggling and eventually
the court finds the suspect guilty and any
diamond is confiscated and sold by public
tender, then that person will receive forty
percent (40%) of the value of the diamond.
We are also ploughing money back into the
communities where the mining takes place.
The government receives three percent of
the export value of any diamond that is
exported and a quarter of that three percent
is goes to those local communities. In the
past three or four years, that has amounted
to about one and a half million dollars
and obviously this also an incentive for
people to support the legal diamond trade.
For the rod, we no longer fine people for
either unlawful possession or smuggling
of diamonds. You go straight to jail where
you will spend three years for unlawful
possession and five years for smuggling.
Together, this carrot and stick have worked
well and we hope it continues.
USAID are also looking at grassroots artesenal
mining and have organised some of the people
into cooperative bodies, encouraging them
to take out mining licences. For me, this
is a fascinating experiment that could really
change the pattern of artesenal mining in
the provinces and ensure that the miners
and not the dealers that profit from their
work.
Summit Communications:
You have also made the point that corruption
really is an international issue. Is there
anything else you would like to see from
the international community?
Honourable Alhaji M.S. Deen: I think we
need their understanding because, as you
say, this corruption is an international
issue. Our government itself is working
hard to try and eradicate it altogether
by imposing the rule of law no matter who
is implicated. I will not claim that we
have managed to eradicate corruption entirely
but we have made massive strides in the
last few years. However, there is no doubt
that this is an international process and
we need the ongoing support of international
buyers and the international community to
continue what we have started.
Summit Communications:
Another issue that this raises is with the
UN troops leaving by the beginning of next
year, is the capacity of Sierra Leone's
army to ensure the integrity of its borders.
Are Sierra Leone's security Forces ready
and prepared for that and what do you think
the implications would be for diamond smuggling?
Honourable Alhaji M.S. Deen: We are getting
a lot of support from our international
friends. For instance, last week we received
a consignment of logistical equipment and
vehicles for our army. The UK government
through IMATT are providing training for
the police and military. There has been
a real effort to build capacity and our
forces have gradually taking over as UN
troops are phased out. We feel we are fully
ready, prepared and equipped but this is
an ongoing process. The UK's IMATT force
will stay with us at least until 2010 to
direct our personnel and train them. The
police are doing the same. They are taking
on many new recruits. I think this is what
we need. Once we have that, the confidence
will grow. We are quietly confident right
now and confidence will grow as more and
more proof emerges that we can look after
ourselves security-wise.
In terms of the diamond sector, when UNAMSIL
were stationed in Kono, they helped us with
air patrols, provided helicopters and were
able to go into areas which we had not been
equipped to visit before. These were the
areas were the illicit activities took place
and their assistance enable us, at one time,
when we increased our diamond digging licences
by well over a hundred, in one month. That
is very significant. Now, we cannot provide
the helicopter to carry out an air patrol
but we are continuing to carry out a foot
patrol and we will continue to monitor operations.
Summit Communications:
It is testament to your nation's renewal
that foreign investors are committing themselves
to major new projects here in the country
now. Titanium Resources Group and Koidu
Holdings are the obvious examples, but just
last week Mr Stuart MacGregor's Argyll Resources
Corporation announced plans to invest US$1.6
billion in mining bauxite and alumina. This
project as been described by Mr MacGregor
as, "the largest infrastructure project
to be undertaken in West Africa." The
report that we are publishing is going to
be read by the most powerful political and
business leaders in the US and potential
investors around the world. We are keen
to communicate to this audience more about
the opportunities that lie here. Where do
you feel corporate investment can best help
Sierra Leone and which are the particular
opportunities or areas you can highlight
to the readers of the New York Times?
Honourable Alhaji M.S. Deen: Koidu Holdings
is reaping the rewards of the foresight
of their management and the faith it had
in the vision of the government and in the
stability of the country. But they are the
only operational Kimberlite mine at the
moment and Kimberlite diamonds represented
only 11 percent of official exports in 2004.
The prospects for setting up more mines
are good, especially since Sierra Leone
has diamond deposits with an average run-of-mine
carat value that competes with any other
diamond producing country in the world.
The first thing the proprietors of Titanium
Resources Group must be commended for is
for securing their assets. Much of their
large equipment was left intact. i.e. the
power plant, the dredge and all the wet
and dry plants were all in place. They committed
funds to keep them going up to ten, eleven
years. The cost of that over the years since
1995 has been considerable and demonstrates
their confidence in the quality of our rutile
and bauxite deposits. Taken on a mine for
mine basis, it is the largest deposit in
the world.
We also have an iron ore mine which closed
down in 1985. The development in China and
India means that iron ore once again has
economic value. A number of investors have
expressed interest in reviving the iron
ore mine. We have already got investors
in place for that and have granted a concession
to a local company with a foreign partner.
A fifty-two mile railroad used to carry
the ore from the mine site to the port.
Now we have an understanding with another
company that is going to repair, reactivate
and operate this rail on behalf of government
and offer it on a rental basis to the mining
companies around.
We also have great potential in gold though
at the moment the amount of gold exported
is totally overshadowed by our diamond exports.
We already have a lot of alluvial gold mining
but now there's a lot of exploration work
going on to obtain gold from the rock in
the northern part of the country. Cluff
Gold started in Zimbabwe and then came to
Ghana. They're getting very good results
and we believe that in the next couple of
years, we should have a gold mine in Sierra
Leone for the first time. In addition to
Koidu Holdings in Kono, we have a South
African Company coming to look at one of
the Kimberlite dykes. The Kimberlite body
forms either in pipes or dykes which are
small bodies running horizontal for several
miles. This company is expert in this and
will begin bulk sampling on one of these
dykes in Kono in partnership with Mano River
Resources.
Other investors are also entering into
platinum exploration in the Western Area.
Platinum was mined in this country during
the Second World War, but then died out.
We know there is incredible mineral wealth
in this country but we have never been able
to really systematically explore these resources.
We have very positive indications but no
concrete information. A department in our
Ministry, the Geological Survey department,
discovered all these minerals initially
but they can only go as far as our resources
permit and then we invite the investors
to come in. A company called SLDC has now
come in and is exploring large areas of
Sierra Leone airborne electro magnetic survey.
It is very expensive but it is a much quicker
to get your data. SLDC and another company
are taking very large areas of the country
and looking primarily for Kimberlite bodies.
When they fly as low as possible, you have
an instrument in the aircraft recording
the magnetic property of the rock. Depending
on the magnetic property of the rock, you
can identify areas of high potential and
then come down to earth and see what that
body is. This will be of great use to us.
Summit Communications:
Another issue I don't know if It is something
that interest your Ministry or not; you
mentioned about rough diamonds; obviously,
the trade here in Sierra Leone; the export
are all rough diamonds. Are you looking
for investment in value added processes?
Honourable Alhaji M.S. Deen: We have already
have; the thing that happens is that, you
will be looking for somebody to come and
show some interest in one particular aspect
of the mining and then suddenly you get
one and soon after that, you get so many
more coming. We have about three or four
right now that we are looking at to come
and set up polishing and cutting system.
We would give each one of them the chance.
The problem would be that they need the
raw materials- which is the diamond it self.
So what we would do is to give them the
opportunity to purchase for themselves and
then use that. We might come to the point
were we may even consider leaving five,
ten twenty percents of all export for the
cutting and the processing. We would
interest showing in the value added side
of the diamond. I also received something
about gold, but our production in gold is
not so
but we may even come in to
something were somebody will come and make
Jewelleries from the gold. i.e. the limited
amount that we have. That is also a welcome
idea.
Summit Communications:
Minister Deen, as you can see from the format
of our report, we interview the top personalities,
the top institutions and the top companies
in all the countries that we go to, but
we are also interested in portraying those
personalities that are spearheading the
changes in their coutnries. Could you please
share with our readers something about your
political and your professional background
and how they influence the way you carry
out your work here in the Ministry?
Honourable Alhaji M.S. Deen: Well, I am
a mining engineer by profession. I studied
in the UK as a graduate student in London
University. I worked first in government
for about fourteen years and then I joined
the industry, working for a diamond mine.
At the time, when the rebels attacked the
operations of this diamond mine, I was Managing
Director. Then I went into private consultancy
and then I finally found myself in politics
and I've been Minister of Mineral Resources
since 1998. As a government official, you
must formulate ideas and plans about what
you think the Ministry or the industry should
do to improve itself in order to gain the
maximum benefit for all the stakeholders
involved. Fortunately, most of the people
I work with, have worked with me before
and so we have a very good team out here.
Even before the war, we had problems with
smuggling. The rebels taking over the diamond-producing
areas compounded this and though there are
no longer any conflict diamonds coming out
of Sierra Leone but our focus has really
been to eradicate smuggling. We must control
the trade in such a way to ensure that we
get the maximum benefit from it. We don't
think that we can get a hundred percent
smuggle free situation but we can and we
have reduced it. With the rise we are seeing
in legal exports, we can be sure that smuggling
is correspondingly getting less.
Summit Communications:
So you have come from the private sector
and really driven the renaissance of the
mining sector again from your position as
Minister. Is the motivation of being a public
servant important to you?
Honourable Alhaji M.S. Deen: I think that
is it. I have the knowledge to really be
an asset to this Ministry. I should, of
course, do better than a non-engineer or
a non-Professional and I have to apply my
endeavours in a sustained and professional
way so that this Ministry can become a model.
We involve colleagues, we involve people
who are outside politics but have been or
are in the industry and then tap their experiences
and their views to make things improve.
Summit Communications:
Minister Deen, I would like to introduce
the next question with the words of Mr Nelson
Mandela. He said and I quote 'after climbing
a great hill, one only finds that there
are more hills to climb." You've travelled
a long way in a short time as Minister of
Mineral Resources. You said seven years
but the transformation on so many levels
has been dramatic. What are your hopes and
aspirations for both your ministry and your
country in the coming years?
Honourable Alhaji M.S. Deen: Well, I think
the mining really should be the engine of
development in Sierra Leone in terms of
poverty reduction and in terms of generating
employment. Our ministry or the mining industry
should be a leading thing in providing employment
for people. Right now we have one diamond
mine operating and Titanium Resources Group
will come online very soon. However, in
the next four or five years, we hope to
see at least two or three diamond mining
companies with several diamond cutting and
polishing companies, gold mines, more activities
in rutile and bauxite, although if the alumina
plants are established then we will try
to discourage raw exports of bauxite. If
we have five or six or even up to ten mines
working, the employment situation will be
improved considerably and that in turn will
reduce the poverty in the country. This
is my vision and my hope for the next five
years.
Summit Communications:
Honourable Minister, I just like to give
you the opportunity to send direct message
to the readers of the New York Times, a
message of business, a message of friendship
or whatever you want to say. Please go ahead?
Honourable Alhaji
M.S. Deen: The mineral potential in Sierra
Leone is huge. It has not been tapped at
all and to use an apt cliché we have
only just scratched the surface. Theirs
is a wealth of opportunities for investors
to come and get involved in and the security
situation is such that investors have nothing
to fear at all. The war was over many years
ago and there's quite a lot of development
already going on. So I encourage them to
come and join and take part in it.
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