Mines Ministry, NMA, SLMMDC, Minerals Wealth Fund….

Who’s in charge?

Institutional Challenge in Sierra Leone’s Natural Resource Management

By Thaimu Thullah

The management of the country’s natural resources has become a complex and contentious issue, characterized by overlapping mandates and institutional struggles. Central to this issue is the 1991 Constitution, which assigns responsibility for overseeing natural resource operations to the Ministry of Mines. However, the governance landscape is further complicated by the existence of multiple agencies, each with defined roles but often conflicting interests.

One such entity is the National Minerals Agency (NMA), which was established in 2012 through by an Act of Parliament. The NMA is tasked with overseeing the operational management of the mining sector and issuing mining licenses to both small-scale and large-scale operators. While the agency was created to streamline and regulate mining activities in the country, its roles often intersect and occasionally conflict with those of the Ministry of Mines, creating a bureaucratic maze that can hinder effective resource management.

Aside from the Ministry of Mines and the NMA, the management framework includes the Mineral Wealth Fund, which was established by the government and formally managed by a Russian national not until objections were raised before a Sierra Leonean was handpicked by the Ministry of Finance to head that office. Despite the removal of the Russian National from the operations of the Mineral Wealth Fund, it is believed that he was still working behind the scene as investigation uncovered that a new company already established is directly linked to the same Russian. It is understood that the Mineral Wealth Fund and SLMMDC had an MOU whereas the new company name withheld for now is alleged to have signed an MOU with the Mineral Wealth Fund raising questions as to what could be the rationale behind the signing of different MOUs. In all of these, the Ministry of Mines which has the constitutional mandate is being sideline alongside the NMA rendering them useless whilst placing the responsibility in the hands of the Finance Ministry.

According to the NMA Act of 2012, ‘‘The National Minerals Agency (NMA) in Sierra Leone has a broad mandate focused on promoting and regulating the country’s mineral sector. Its core functions include administering and enforcing mining laws, managing mineral rights, regulating mineral trading, and providing technical support for the sector’s development. The NMA also plays a crucial role in collecting and disseminating geological data, advising the government on mining policy, and promoting the rights of mining communities.’’ 

Adding to the complexity is the Sierra Leone Minerals Mines Development Company (SLMMDC), which is tasked with the comprehensive responsibility for managing the country’s natural resources. The SLMMDC’s role is critical, yet it grapples with a lack of clarity regarding its authority in relation to the other agencies, particularly the Mineral Wealth Fund. As part of its mandate, MWF instruments reads as follows…

‘’The Sierra Leone Mineral Wealth Fund (MWF) according to its mandate aims to ensure the nation benefits transparently and effectively from its mineral resources, particularly diamonds, iron ore, and bauxite, for the long-term benefit of its citizens. The fund’s mandate includes maximizing returns from mineral exploration and development through responsible and transparent commercial Special Purpose Vehicles. It also focuses on domestic investments in crucial sectors like power generation, water management, environmental sustainability, and infrastructure’’

What makes this situation particularly ironic is the intricate nexus between the Mineral Wealth Fund and the SLMMDC. The overlap of these institutions’ responsibilities often leads to confusion and inefficiency, raising questions about the governance structure surrounding Sierra Leone’s rich natural resources.

‘‘The Sierra Leone Mines and Minerals Development and Management Corporation (SLMMDMC) is mandated to manage the nation’s mineral resources on behalf of the Republic of Sierra Leone, including negotiating mining deals locally and internationally. It also acts as the 100% shareholder of the Mineral Wealth Fund, a sovereign wealth fund designed to manage and invest profits from the mining sector. The SLMMDMC is responsible for promoting the development of the minerals sector through effective administration and regulation of mineral rights and minerals trading’’

The result of this institutional scramble is a fragmented management approach that undermines the potential for the country to effectively harness its mineral wealth for national development. Addressing these challenges will require a comprehensive reevaluation of the existing legal and institutional frameworks to establish clear lines of responsibility, foster inter-agency operations, improve transparency and accountability.

It is believed that in all of this, Mines Ministry which has a supervisory role has been playing the card to ensure the right thing is done but there are other players who are hell bent in undermining the process. Whether the ministry’s role is overlapping, there’s nothing to question because it has the constitutional mandate to manage the mines sector. Some school of thoughts hold the view that instead of having so many players in the management of the country’s natural resources, why not live everything in the hands of Mines Ministry and that of the National Minerals Agency. With these two, the country’s minerals will be better managed and all that is needed is for corrective measures to right the wrongs of the past.