The Global Times recently obtained insider information about the planned new mining act that has already triggered the first investment proposals by some credible foreign mining companies.
According to documents obtained by the Global Times from various sources, the Government plans to revise the Mining Act, which has already led to changes in the investment strategy by some foreign investors.
However, the new Mining Act may still be a subject to changes and will have to be ratified by the Parliament.
Cyclon Metals Ltd, an Australian based mining developer and investment company listed on the stock exchange made according to government insiders an attractive investment proposal to the Government of Sierra Leone, proposing a total investment of several millions of US-Dollars and the creation of more than 500 new qualified jobs in its proposed Marampa Mining Joint Venture.
Cyclon Metals Ltd. is the successor of Cape Lambert which several years ago explored the Marampa Iron Ore deposit and then later had a dispute with the government and was hit by Ebola and a depressed market.
Cyclon Metals as a new investor with a broad range of mining assets plans to make use of the already fully explored Marampa South deposit in which Cape Lambert proved more than 600 Mio/t of high grade iron ore that can be mined in an economical and environmentally friendly manner.
According to documents obtained by the Global Times, the initial investment phase for the proposal will include a USD50 Million equity investment offering the Government not only a free 10% stake as proposed by the draft mining act but also an additional 5% free interest as the investment steps up. A 15% free carried interest even exceeds the government interests in other ECOWAS countries.
The main basis for the Cyclon Metal proposal is already the possibility to immediately start the mining process in 2021 on the basis of the full exploration already done by its successor Cyclon Metals.
In addition, the country can expect a new phase of infrastructure development in the region that will include roads and in a later phase a railway access.
The Government and Cyclon Metals declined to comment on this matter or could not be reached.
It waits to be seen how the Government will react to the proposal and when the new Mining Act is approved by the Sierra Leonean Parliament.