The Sierra Leone government has withdrawn the license of leading iron miner Shansteel (SL) Limited and asked it to leave, accusing the firm of failing to meet its obligations.
Shansteel (SL) Limited, which is a subsidiary of China’s Shandong Iron and Steel Limited, is owner of the Tonkolili Iron Ore Project (TIOP), which was once owned by the defunct UK-based miner, African Minerals Limited (AML).
AML, which started operations in the country in 2011, operated a fully integrated mine – TIOP – and a rail and Port infrastructure.
The TIOP is based in the northern Tonkolili District.
The National Minerals Agency (NMA) said on Thursday that Shansteel (SL) Limited and its sister company the APRS contravened its statutory obligations in both the mining lease and the railway and port lease agreements.
TIOP also failed to pay their annual license fees and lease rent agreement since August 2018.
The company is also accused of failing to make royalty payment for April 2018 shipment of iron ore and to provide details of its phase two development plan.
NMA is responsible to regulate the activities of mining companies.
“The cancellation of these licenses and the ARPS lease agreement is without prejudice to the obligation of TIOP and ARPS pursuant to the license and lease agreement,” said Julius Mattai, Director General of NMA.
The confirmation made at a press conference followed days of speculations about the suspension and cancellation of many major mining companies.
The NMA official dismissed these rumours as untrue, saying the government took handling of investors seriously.
KC/as/APA