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 Stress day-to-day management support/fire-fighting Also working with UMU and Chamber of Mines

Our perspective?

Our perspective

Our perspective

Our perspective

Our perspective

Your perspective?

Sierra Leone top performer in West Africa

Tourism potential

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

Partnerships Government: Membership organisations: MMR, PSRU, HRMO, United Mineworkers Union, Chamber of Mines Government: MMR, PSRU, HRMO, Office of the President, GDO, NRA Donors: DFID, World Bank, EC, UNDP, USAID Reference Afghanistan experiences

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 Artisanal licenses are not having the desired effect on the market

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) Regulations that are not fit for purpose 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 Most of this is in collaboration with World Bank

Thank you