However, mineral export is very volatile. The Bank of Sierra Leone depends heavily on exports, especially that of mineral resources to build its foreign exchange reserves to be able to influence the exchange rate of the Leone in the international foreign exchange market. However, illegal dollarization is not the only currency problems of Sierra Leone. The prices of renting a house, booking for hotels and flight tickets, car rentals, consulting fees, wages of foreign workers are among the economic activities almost constantly quoted in US dollars instead of the legal tender, the Leone. in that regard given that large parts of Section 26 (4) of the Bank of Sierra Leone Act, 2019 are violated.Ī deep seated problem is that a huge part of Sierra Leone's economy is dollarized with impunity. However, the bank operates in an atmosphere of weak law enforcement. The law states that all prices in the domestic market have to be in Leones. The Bank of Sierra Leone noticed the general public in a press release dated 20 August, 2019 that it is illegal under the country’s laws to quote prices in foreign currencies. We intend to expand the delivery of high-grade 65% iron ore concentrate to markets in Europe and Africa.Sierra Leone’s currency, the Leone, has lost over 100 percent of its value to the US Dollar since 2016, according to the country's apex bank, underlining a deep-seated crisis that has refused to budge. "Our goal is to make ‘Marampa Blue’ an internationally recognised premium grade iron ore brand. Now prices have stabilised we’re in a favourable position with our first shipments leaving for China. If you analyse the iron ore market it has transformed, even from a couple of years ago when prices were very low. Gerald Groupīack in 2019, Dean spoke with Mining about the development of Marampa and commented: " SL Mining offers a substantial opportunity for Gerald Group as our Marampa mine in Sierra Leone is producing two million tonnes per annum of high grade iron ore in the first phase of development, with expansion possibilities of greater than six million tonnes per annum of high-grade iron ore during its operational life. Gerald estimates that Marampa holds about 1 billion tonnes of iron ore with a potential lifespan of 30 years. this outcome justifies our action," he said. "Whatever the pain we may have borne or dreaded throughout these two years. Sierra Leone's Mines Minister Timothy Kabba told a news conference on Tuesday that the agreement was a milestone for the country. Gerald’s chairman and CEO Craig Dean commented: "I am delighted that we have been able to resolve our differences and have a fresh start and new beginning with the government of Sierra Leone." Gerald will make two $10mn payments this year and will have the immediate right to ship its current stockpile of about 707,000 tonnes of iron ore, it said.īoth sides will withdraw their legal claims before the International Chamber of Commerce (ICC) and International Centre for Settlement of Investment Disputes (ICSID), the statement added. Sierra Leone's government responded by cancelling its mining licence.Īs part of the agreement signed on Friday, Sierra Leone will take a non-dilutable 10% stake in a new company that will replace SL Mining and resume operations at Marampa by June 1, Gerald said in a statement. Gerald's wholly-owned subsidiary SL Mining filed for arbitration in August 2019 over a royalty payment dispute and suspended the Marampa mine the following month. Gerald Group, the US commodity trader, will pay Sierra Leone $20mn and cede a 10% stake in an iron ore project as part of the resolution to a nearly two-year dispute that led to the shutdown of production, the two sides revealed.
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