United States Ambassador, David Hunt has described articles in some local tabloids accusing his country of bearing a hand in a proposed take-over bid of Sierra Rutile by MML (Marampa Mines Limited) as “erroneous” and “misleading.”
The United States was made to face the lash of a media satire owing to unverified claims that she meddled in a trade deal between Iron Ore miner and Sierra Rutile.
PRM, the parent company of Marampa Mines Limited (MML) operating in Marampa Chiefdom in PortLoko district also faced bad press owing to publications that its subsidiary, MML is not paying surface rent to the Sierra Leonean authorities.
A reputable and seasoned American investor, Craig Dean’s investment integrity was also questioned by the Sierra Leone’s press creating doubt about what he can offer to Sierra Leone, a country that is dire need of serious and credible investors.
Although they appear to be half-truths and unfounded claims, the media publications pose a serious threat to US’s image in Sierra Leone in light of her global geo-political standing.
These unverified claims came days after the US company expressed interest in taking over Sierra Rutile which suspended mining operation and sent home hundreds of its workers. Bad business and the economic crunch could be the main factors.
In such a disastrous situation, the US investor, Chief Executive Officer (CEO), Craig Dean comes in to stop the job losses that would have worsened suffering and economic stagnation.
As an official representing the US government here in Sierra Leone, Ambassador David Hunt is obliged to set the records straight for journalists not to mislead the public.
At a press briefing held last Tuesday at the US Embassy in Freetown, the US diplomat bashed at the publications which he described as falsehoods aimed at dragging the United States government into a private stock exchange business.
The United States, he says, is not a party to the transaction between MML and Sierra Rutile, but has the duty to ensure that foreign investment in Sierra Leone benefits Sierra Leoneans.
Ambassador Hunt also put it to journalists that their publications were mere “opinions” and not “facts.”
The transaction, he went on, between MML and Sierra Rutile was no secret as it could be accessed on the Australian stock exchange website as well as other websites.
“It was not done behind closed doors; whenever a company reaches a threshold of 20%, it can declare its intention to go public if it wishes to buy shares into another company, and this is clearly understood by the parties and the Australian stock exchange,” Ambassador hunt informed journalists.
Delving into details about the business deal, Mr Hunt said the US company which was about to take over Sierra Rutile in Sierra Leone showed its interest by bidding to buy shares of the company which, he said, was a legal move.
“It is something the mining company did not reject, and was yet to announce its position regarding the take-over as well as an attractive bidding price.
While assuring journalists that MML would comply with the country’s laws, he called on journalists to seek accurate information on matters of high public interest prior to publication to protect Sierra Leone’s investment climate.
In a question-and-answer session that formed part of the press briefing, the US Ambassador and team responded to various questions bordering on the exact number of US mining companies in Sierra Leone, total exports, taxes and royalties paid to government and communities.
In response to Craig Dean’s credentials and investment experience, the US Ambassador responded that “Craig Dean is a respected senior US corporate executive with vast experience in the extractive minerals industry with companies in several countries.”
Ambassador Hunt’s compliments about the US Ambassador have been supported by Sierra Leonean law makers who recently applauded Craig Dean over MML’s planned take-over of Sierra Rutile.
Law makers referred to the take over as a swift move to rescue 25% of employees including expatriate staff who have been issued with redundancy notices from Sierra Rutile company.
The company’s redundancy notices show that by the end of March, this year, the staff will lose their jobs.
The employees who previously faced redundancy risks now breathe a sigh of relief as the MML take-over will let them retain their jobs.
Support for Ambassador Hunt’s claims continues within the walls of the law-making building as another law maker said “there was huge pressure the moment Sierra Rutile suspended operations for many MPs including himself since the livelihood of their constituents have been put on hold.”
In a telephone conversation, a senior member of parliament in the Mines and Minerals Committee also commended CEO Dean for rescuing Sierra Leonean employees and foreign staff who would have lost their jobs, if MML had sit back with folded arms.
The law maker also faced similar pressure after notices were sent to the staff with passionate appeals to find them jobs elsewhere.
“I am happy for the swift intervention of PRM in rescuing the mining communities,” he commended adding that most of the affected employees are indigenes of the mining communities.
PRM’s take-over of Sierra Rutile was also a topical issue outside parliament, and it came up during a government’s press briefing recently held at the Foreign Affairs Ministry in Freetown. The response by government officials was also one that favoured the US company, MML owing to its contribution to Sierra Leone’s economy.
Raising monopoly concerns over MML’s take-over of Sierra Rutile, Mines Minister, Julius Mattai allayed such fear saying “there is no question about monopoly since Sierra Rutile is engaged in Bauxite mining while Marampa Mines also engaged in Bauxite mining.”
Government, he went on, had been looking for credible investors and that Marampa Mines is on record for being the single mining company that has been paying the highest in terms of royalties and surface rent to government.
Under Craig Dean, MML has paid a total of $40m, in 2022 and 2023 to the government of Sierra Leone being taxes and royalties prescribed by MML’s agreement.
The said sum is an addition to the $1.74m being payment made last year to the Community Development Fund established for Marampa and Maforki Chiefdoms in PortLoko district and similar payment will be made in 2024.
As it stands, MML’s contractors and vendors also pay taxes to the government of Sierra Leone.
In its short time of existence, MML has stood the test of time pouring money into the public purse by way of investment and creation of jobs for the jobless youth.
According to a document seen by this press, MML exported 2.5 million tons of Iron Ore worth over $228m and the royalty paid to government was in excess of $12m.
The company, according government officials, has never reneged on its financial obligations since it gains a foothold in the mining sector.
Mr Mattai further told journalists that government’s ears remain fixed to the ground as they wait to hear from Sierra Rutile in respect of the proposed take over.
Takeovers are not strange occurrences to the mining sector and other businesses in any part of the world.
Sierra Leone, in early 2017, saw Shandong’s take-over of AML (African Minerals Limited)’s facilities between Ferengbeya and Pepel communities in Tonkolili and PortLoko districts respectively after the latter went out of business owing to the twin shocks: the outbreak of Ebola Virus in May, 2014 and the fall of Iron Ore price at the global market.
Sierra Leone’s economy was badly hit by the twin shocks and a credible investor was needed to take the country out of the doldrums of abject poverty and under development.
It is the same with MML’s take over Sierra Rutile which has faced bad times in the business world with the US having no say in how the deal is carried out.