INVESTING IN SIERRA LEONE Mineral Resources Julius Mattai, Director General, National Minerals Agency June 2019 UK – SL Trade and Investment Conference

Sierra Leone’s known mineral resources Rutile Ilmenite Bauxite Iron Ore Gold Diamond Zircon Columbite-Tantalite (coltan)

Nationwide Airborne Geophysical Survey of Sierra Leone World Bank’s Extractive Industry Technical Assistance Project Phase 2 (EITAP 2) has provided budgetary support to carry out a Nationwide Airborne Geophysical Survey to enhance general knowledge of Sierra Leone’s mineral potential Nationwide Airborne Aeromagnetic & Radiometric Surveys. Followed by Airborne Electromagnetic Line Spacing: 150 meters; Tie line spacing: 1, 500 meters; Terrain Clearance: 50 meters (agl); Minimum line length: 3 kilometres Time frame: Started in January 2019. Break on June 2019. Restart in October 2019. Completion in May 2020 Survey flown by Xcalibur Airborne Geophysics Data Quality Control by Reid Geophysics One of the best nationwide geophysical surveys in the World Completed: 75%

Sierra Leone’s potential mineral resources Base Metals & Elements Chromite Platinum Nickel Manganese Dimension Stone Granite Gravel Semi-precious Stones Molybdenum Tin Copper Lead Graphite Lignite

Nature of mining investments Mining is capital intensive, high-risk and long-lived business, with significant investment in exploration and development, mostly sourced from the private sector Why has Sierra Leone's mining potential not been fulfilled in the past? Investor  Commodity price volatility, underdeveloped infrastructure, power supply constraints, lack of local development, political instability and an investment climate perceived as very weak “Fly-By-Night” Investors

Mineral rights – Licensing and administration Reconnaissance Licences = 0 Exploration Licences = 62 Small-scale Mining Licences = 2 Cancellations of Licences: 41 (July 2018) 25 (April 2019) Large-scale Mining Licences = 12 Artisanal Mining Licences = 1,170 Web-based Mining Cadastre Administration System (MCAS) provides information on license holders, coordinates, application dates, duration of licence and fiscal information

Status of Mining Companies in Sierra Leone Tonkolili Iron Ore Iron Ore Southern Mining CKH Mining Mass Energy Northern Mining Boroma Ltd Diamond Nimini Mining Gold Sula North Gold/Iron-Ore Marampa Iron Ore Iron Ore SL Mining Iron Ore Algom Resources Gold Sierra Diamonds Diamond MEYA Sierramin Bauxite Koidu Ltd Diamond Sierra Minerals Holding Ltd Bauxite Sierra Rutile/Iluka Resources Rutile Dayu Mining Ltd

Total mineral exports in 2018 Artisanal Diamonds Iron Ore Rutile $ 65,429,984 181,507 carats Revenues: $ 2.1 Million $ 91,427,007 559,627 carats R: $12.4 Million $ 5,242,205 135 kg R: $ 595,960 $ 13,149,241 968,585 tonnes R: $ 9.4 Million $ 64,060,326 1,822,123 tonnes R: $ 7.6 Million $ 99,997,508 130,751 tonnes R: $18.6 Million $ 4,425,097.95 423 tonnes R: $ 130,000 Industrial Diamonds Bauxite Coltan Gold

Contribution of the mineral sector to the economy The minerals sector has been the backbone of Sierra Leone’s economy since 1930’s 2013 2014 2015 2016 2017 2018 Contribution of Mining Revenue to Total National Revenue Authority (NRA) Revenue (billions of Leones) 440 386 345 315 239 445 Mining Revenue as % of Total NRA Revenue Source: NRA Mining Sector as % of GDP Source: Statistics SL 21% 18% 18% 11% 10% 10% 24.5% 23% 27.3% 4.2% 6% 5% 4.3%

Roadmap for improving investment in the mining sector To identify low-cost/low-hurdle actions to be implemented by the Ministry of Mines & Mineral Resources, National Minerals Agency, the mining industry and other stakeholders that can start to build the mining revival and create a positive narrative to drive increased investment To enhance inputs, processes, outputs, outcomes, impacts and their linkages with the objectives of Sierra Leone’s Medium-term National Development Plan (2013-2019) for diversification from mining Wealth Creation Broad-based Sustainable Development Improving enforcement of existing laws and regulations Improving policy implementation Roadmap to be implemented through the Extractive Value Chain Summary: Sierra Leone is a small , peaceful and democractic West African country Rich in natural resources and welcomes foreign investment Award of Contracts and Licenses Regulation and Monitoring of Operations Collection of Taxes and Royalties Revenue Distribution and Management Implementation of Sustainable Development Policies and Projects Export

Improving legal & regulatory frameworks Mines and Minerals Act 2009 Established the Minerals Advisory Board (MAB) National Minerals Agency (NMA) Act 2012 Established the NMA Board Mines and Minerals Operational Regulations 2013

THANK YOU FOR YOUR ATTENTION “On this 58th anniversary of our independence, I want us to each reflect deeply and ask ourselves as individuals and collectively as a nation what we have done to make our country a land worth living in “ HE President Julius Bio 27 April 2019 THANK YOU FOR YOUR ATTENTION