Sierra Leone is rich in mineral resources. Diamonds, gold, bauxite, rutile and iron ore are known to exist in large quantities. According to CIA-World Factbook, political stability has led to a revival of economic activity such as the rehabilitation of bauxite and rutile mining, which are set to benefit from planned tax incentives. Several offshore oil discoveries were announced in 2009 and 2010. The development on these reserves, which could be significant, is still years away.The rise of mineral prices in recent years has led to strong interest by international mining companies in Sierra Leone, resulting in a surge of new mining licenses and exploration. Revenues from the oil, gas and mining sector are small at present: US $27m in 2011 up from US $7.5 in 2010, with oil and gas revenues outstripping mining for the first time. Although this was less than 1% of GDP in 2011, these revenues are forecast to grow to up to 17% of GDP by 2020.
The 2011 EITI Report shows that revenues from the oil, gas and mining sectors are up by almost four times, but remain a small part of the economy.
The Board on 26 February 2013 suspended Sierra Leone. The Board also recognised the significant process achieved and asked Sierra Leone to complete four remedial actions. The suspension will be lifted if the Board is content that the remedial actions are satisfactorily completed. Upon completion of the 2011 report, the MSG invited the International Secretariat to assess whether the remedial actions could have been met. The Secretariat is presently assessing those actions and will make a recommendation to the Board.
1) In accordance with Requirement 11, the government is required to ensure that all relevant companies and government entities participate in the reporting process. The Board noted the efforts underway to clarify the significance of the payments from companies that did not participate in the 2010 report, and the local government entities that did not report revenues. The Board highlights the suggestion in Requirement 11(b) that where a number of small operators pay revenues which are individually not material, but collectively material, the government discloses the combined benefit streams from such small operators.
2) In accordance with Requirement 13, the government ensures that the disclosures from government entities are based on accounts audited to international standards. The Board recommends that the MSG agrees a strategy to address this issue, with particular emphasis on the sub-national entities.
3) In accordance with Requirement 14, the government ensures that all material companies comprehensively disclose all material payments in accordance with the agreed reporting templates. Where companies are no longer operating in the country, the government should unilaterally disclose all payments received.
4) In accordance with Requirement 15, the government ensures that all government agencies comprehensively disclose all material revenues in accordance with the agreed reporting templates .
These corrective actions could be addressed by publishing a supplementary 2010 EITI Report, or through the 2011 EITI Report, which was published on 27 December 2013.
First Validation report 2010 available here.
Second Validation report 2010 available here.
- The report includes a brief description of the legal framework, types of licenses and taxation applicable to the oil and gas, and mining sectors.
- The report includes the license register number of each company, information about the commodity explored/produced and details on equity ownership. Some companies have also reported on production.
- Planned use of EITI platform to include contract transparency (yet to be implemented).
- SLEITI Song