Thursday, August 22, 2019

China's Gold Deals

When the Chinese gold miners came to Masumbiri town in northern Sierra Leone, everyone lined up for jobs. Dayu, a private company that started working in Sierra Leone last year, was just the latest in a line of Chinese firms drawn to the mineral-rich ground of the West African state's Tonkolili district in search of gold. Like many African countries, Sierra Leone has courted foreign companies which pay governments big fees for mining rights, while locals often feel they have no say nor benefit. 

China is by far the biggest importer of minerals from sub-Saharan Africa; it invested about $30 billion in metals mining on the continent in the last decade, nearly 15% of it in Sierra Leone. Gold mining has been a relatively small industry in Sierra Leone compared to diamonds or iron ore, but is growing with companies such as Dayu, which says it has the biggest underground gold mine in the country - its only project. Sierra Leone is "open for business" according to President Julius Maada Bio, who has touted the message to investors in China, Britain and the United Arab Emirates since taking office last year with a pledge to ensure mining benefits the country.


People feel like the land and minerals are theirs but they have no licence, said the company's community manager Mohamed Daffae.
Dayu's agreement with the government gives it access to 9.6 square km (3.7 square miles) for 25 years.BRecently, Daffae faced pushback from locals who were mining in an area where the company wanted to dig.
"I had to go there and tell them you cannot stop this type of operation, this is for all of us," he said.
http://news.trust.org/item/20190822054004-bcae4


"The people were happy at first because of the employment," said Hassan Tholley, Masumbiri's chief. Hundreds of young men in hard hats were soon bringing home pay checks and the town of 5,000 people had a cell signal and water pumps for the first time - all courtesy of Dayu.
But 18 months into the multi-million dollar project, locals said the income they earned did not make up for their loss of land and that poverty was worsening. When workers are paid - each one earns between $50-$150 a month - they distribute it to family and neighbours and use it to pay off debts, Thulleh said.
"At the end of the month, there is no money left," said 29-year-old miner Abdulai Kargbo, who has one of the higher-paying jobs: blasting and drilling into the mountain for gold.
Looking at the mining, there should have been a lot of development in these communities," said Mohamed Smooth Bangura, a Tonkolili district councilman.
Dayu pay half a million dollars a year to the government for a large-scale mining licence and are required to put 0.01% of their revenues into community development, according to the mining code. But the policies on community development are unclear and this law has not always been applied, the government said last year in a new mining policy intended to kickstart reforms. Dayu has decided to raise its contribution to 1%.
Three towns in the area have different demands. One wants a school, another a health centre, and the third needs drinking water, said councillor Bangura. Only the water pumps have been installed so far, but the water comes straight from the river, unfiltered.


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