African Minerals statement on NMJD report
Statement delivered by Mustapha Kamara, Corporate Affairs Manager African Minerals (SL) Ltd. at the launch of NMJD’s Report, September 7, 2010, British Council, Freetown
FOCUS ON MINING COMPANIES SERIES NO.2
“Dancing with Chameleon – Mining Communities in Sierra Leone and the many faces of Frank Timis” – June 2010
Mr. Chairman, Hon Ministers, Hon Members of Parliament, Members of the Diplomatic and Consular Core, Members of the fourth Estate, Dignitaries, Ladies and Gentlemen Good afternoon.
On the 3rd September 2010, AML received a report titled “Dancing with the Chameleon – Mining Communities in Sierra Leone and the many faces of Frank Timis” – June 2010.
Our initial reaction was and is still to dismiss the report as an anaemic example of the continuing campaign of vilification. This report is inimical of Government’s continuing effort to attract foreign investors to Sierra Leone. A call Frank Timis the Executive Chairman and AML have answered very well for others to follow.
The report mainly focuses on Sandor Chiefdom and alleges that AML has made little or no returns to the Chiefdom.
FACTS
- AML funded the construction of a youth centre and supplied DSTV set, TV plasma, Generator Set and a Freezer to the tune of hundreds of millions Leones.
- Over Le500 million Leones was paid as chiefdom development fees over a three year period (2006, 2007 & 2008) to Sandor Chiefdom Administration.
- In 2006 over 450Million Leones was paid as individual licence holders compensation within the mining concession
- The Law requires that AML pay 3% of the diamond sales to Government of which 0.75% is paid to Sandor Chiefdom as DACDF.
In addition to our SCR towards the Kono District
- AML constructed one of the largest Market centres in the Kono District in the Nimiyama Chiefdom which is in excess of millions of Leones.
- Made yearly contributions of Le15M to the Kono Diamond Dealers Association (KDDA) which has benefited a number of students including University students.
- Rehabilitation of the Mashingbi Kono highway
- In all of this, the company made a loss to the tune of millions of USD – this could be verified by our published audited accounts.
In addition it would please this August body to know that:
- Continually AML is implementing social development programmes to support communities with the provision of safe drinking water; construction and maintenance of roads and bridges; support to education in the form of scholarship; teaching and learning materials and support to health by improving existing and building new infrastructures.
- Employed thousands Sierra Leoneans across the country.
- Opened a training centre for capable Sierra Leoneans to be trained and become supervisors.
- Spent over $300M in exploration – the audience is invited to look at our audited books
- Paid a little over $5M in licenses over the last 5 years (2005 – over $600K; 2006 over $746K; 2007 over $1.4M; 2008 a little over $700K; 2009 over $900K and 2010 $1M – see EITI publication.
- AML’s and its contractors payments to NRA for PAYE is in tune of Billions of Leones per annum
- NASSIT for its employees is also in the tune of Billions of Leones yearly
- A 10% free carried interest is given to the Government in African Rail and Port Services where in AML would invest hundreds of millions of Dollars to build a standard international Railway guage from Tonkolili to Lungi and a port at Targrin which is intended to be a transshipment hub for MRU mines. GoSL will in the life of the agreement receive 10% for 99years which is equivalent to 10s of millions of USD yearly, which we believe is a premium agreement in the history of Sierra Leone. AML has almost completed rehabilitation of the Lusar/Pepel railway which is part of the ARPS agreement.
- Pledged 1M United States Dollars to the Sierra Leone 50th independence anniversary committee.
- Paid over Le2.2B in crop compensation to farmers affected by our project from June to August 2010.
- We are now constructing a new railway and refurbishing the Lunsar Pepel railway and Port to the tune of hundred of millions of Dollars.
- A week after the ratification of AML’s mining lease by parliament, a lease that would see the GoSL take 30-45% of the revenue generated by the mine which would run into hundreds of millions of USD in the 1st five years, the first locomotive arrived in country costing AML $500 thousand United States Dollars which was unveiled by HE the President on Friday 3rd September 2010.
- In 2009, donated to the National Team (Sierra Leone Stars) $100 Thousand USD for the 2010 world cup qualifying campaign and the national Champion Football Team East End Lions 60 Thousand USD for the 2010 African club championship campaign.
- This not including a Le5M monthly support each to East End Lions FC, Bai Bureh Worriors FC of Port Loko and the Golden Dragons of Tonkolili and over Le2.5M to Marampa Stars of Lunsar excluding the donation of footballs and vests to these teams.
- AML is constructing a state of the earth specialized training centre in the island of Pepel to train Sierra Leoneans in various disciplines ranging from railway to port, construction, engineering, geology, environment and metallurgy to become supervisors and managers in the near future.
- 800 scholarships were awarded to school going pupils in the Tonkolili District with 450 going to our immediate operational areas (Kalansogoia, Kafe Simiria and Samaia Bendug Chiefdoms). This would be costing AML Le180M yearly.
- Donated a mortuary to RSLAF costing AML 60 thousand GP.
I have the pleasure to invite interested persons, companies and the fourth estate for any further clarification at our 154 Wilkinson Road Office.
- AMLs future plan is to establish the first School of Mine in sierra Leone and also improve the Geology department of the University.
Furthermore AML take exception to the following:
Page6 paragraph 2 of the NMJD report – “Timis’ publicity around the discovery is the biggest iron ore find in 20 years, and the largest deposit in Africa, surpassing those in Liberia (where the far bigger and better-financed Acelor Mittal Steel is active) and Guinea (exploited by Australian giant Rio Tinto)”
FACTS
- Tonkolili is the largest ore deposit in Africa that is JORC compliance.
- Liberia Mittal Ore deposit was a proven mine and was closed because of the war, so exploration was done years ago.
- Guinea Rio Tinto ore project stands at 2B tones and was proven close to 20 years ago and no work has been done until now.
In contrast, the Tonkolili ore body was discovered 3 years ago and we are now in the construction and development phase and would be shipping its first ore in less than a year.
OBTALA AGREEMENT
There is no cash transaction between AML and Obtala for the redevelopment and production of the Kono mine, the redevelopment of this mine in 2010 has seen the employment of 500 starving Kono youths who are paid competitive wages, fed on a daily bases and also entitled to a 30% share on gross proceeds. We believe the agreement is a premium agreement.
ALL MOTION, LITTLE MOVEMENT
It is a pity that the report is enviously subjective and shows a lack of understanding of the prospecting and exploration concepts in the case of geophysical air magnetic survey.
In summary, according to the former DGS A.C Wurie, the GoSL has been pleading for a grant of couple of millions to fund such a survey but to no avail.
In his tireless belief, in proving that SL would once more regain its prominence and importance, Frank Timis spent 10s of millions of his personal money to conduct the 1st HRAM survey, searching for various minerals, but only discovered the Tonkolili deposit
Ladies and gentlemen, were where all these detractors when SL needed them most. Please note, had no minerals been discovered, Frank Timis would have lost all his investment. Exploration investment is high risk capital and therefore HIGH RISK HIGH RETURN and NO RISK NO RETURN.
On behalf of management, I now extend a challenge to the writers, their sponsors and the Management and Directorship of NMJD, to provide proof of any other mining company or corporate entity that has gone this far in partnership with government to revamp the economy of SL.
Again page10: paragraph 2 sub-heading all Motion, Little Movement claimed by NMJD report: – “the surveys were largely intermittent and incoherent, and there are conflicting reports about progress made. Worse, there was utter confusion about what exactly the company was prospecting for, or whether was all it was doing.”
The few facts above once more dispel the topic All Motion, Little Movement.
Page12: paragraph4; “London Mining filed a writ in a court in Sierra Leone seeking an injunction to force Timis to move his workforce from two stretches of the disputed”.
FACTS
With letters dated 4th, 25th and 26th June and 5th September 2008, the GoSL gave the correct picture of the situation before and after the issue was resolved. The audience is invited to look at these letters in our office at 154 Wilkinson Road.
The most unfortunate, baseless and malicious claim by NMJD “Timis took the Minister of Mineral Resources, Alpha Kanu, on a trip to Romania, and quickly the Sierra Leone government back Timis.”
This statement is libelous, enviously frivolous, vexatious, malicious and a gross manifestation of factual absurdity.
Finally Page14: item2 sub-heading conclusion and recommendation of NMJD report further claims that “it has a Ghanaian as HR Manager” I would like to call on the so called Ghanaian HR Manager Mr. Kweku Jang to proof otherwise.
What is worth noting is the fact a report that is meant for June 2010 is been made public three months.
THANK YOU.
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