08/05/2022
ENVIRONMENT PROTECTION AGENCY TO ROLLOUT MINE REHABILITATION AND CLOSURE BONDS FOR SMALL AND LARGE SCALE MINING COMPANIES IN SIERRA LEONE.
The Environment Protection Agency Sierra Leone as the institution responsible for the effective management and protection of environment has ended a two days extensive stakeholder’s engagement with representatives in the extractive industry on the implementation of Mine Rehabilitation and Closure Bonds as mandated by environmental laws of the country. The meeting brought together representatives from small and large scale mining companies and civil society to discuss the best approach the scheme will be implemented.
It’s a common knowledge that mining companies have not lived to expectations in their responsibilities to restore the environment during and after their operations. In some instances some mining companies have in the past abruptly ended their operations without any form of rehabilitation, leaving the areas degraded with local communities largely bearing the environmental and social costs. The Agency is making this move to hold mining companies accountable and make them more responsible and environmental friendly in their operations.
To this end, a major strategy by the Executive Chairman of the Agency Dr. Bondi Gevao is the bold step to activate some of the provisions of the (Environmental (Mines & Minerals) Regulations 2013 on post mine reclamation bonds. As required by the Environmental Impacts Assessment Process, all proponents be them small or large scale mining companies are required to submit Mine Closure Plans (MCP) and to provide bonds as financial security to ensure that proper land reclamation is done after operation. On the most part this hasn’t been effectively implemented over the years.
The thinking of the Agency under the leadership of Dr. Gevao is to now fully implement the mine rehabilitation and closure bonds for all small and large scale mining companies in Sierra Leone. He is with the view that in order to reverse the awkward trend of events that has rendered the environment largely degraded; the enforcement of compliance is a necessary option that must be explored to ensure the sustainable utilization of natural resources and the general management and Protection of the environment.
This means that going forward all existing companies are mandated to submit their detailed Mine Closure Plans with estimated cost for decommissioning and rehabilitation within six month after the rollout of this initiative. This estimated cost for reclamation will be lodged into an account as bonds accessible to the Agency as financial security for land reclamation.
All new companies are required to submit their detailed Mine Closure Plans and their financial securities for reclamation before licenses are issued for their operations. Also, large scale companies are required to deposit 100% of their estimated budget for rehabilitation at the bank as bonds/financial security; however, this has to be reviewed by the Agency to determine whether such cost will be realistic for proper rehabilitation of mined out areas. All small scale mining companies are required to deposit a flat rate of $10,000 as bonds/financial security for land reclamation after their operations but are required do progressive rehabilitation periodically.
It is important to note that bonds whether in cash or in the form of other financial instruments are to serve only as surety for land reclamation and would be returned to the companies if rehabilitations were satisfactorily done; but in any case they failed in their responsibility to restore the environment, government will use the funds to reclaim the mine out areas.
Moreover, the outcome of the engagement were very promising for sustainable environmental management in Sierra Leone as mining companies will now be compelled by provisions of the law to rehabilitate mined out areas. It is also mandatory for all small and large scale mining companies to embark on progressive land rehabilitation that will ensure that degraded areas are reclaimed before disturbances to new areas. This will ensure that by the time the company ends its operations most of the degraded areas would have been rehabilitated for community use. It is important to note that all Mine Closure Plans submitted are subject to review after every two years.
This goes to say that it’s no longer going to be business as usual. Mining companies who failed to comply with this regulation will be sanctioned by the Agency which could lead to the imposition of fines, suspension of operations and withdrawal of license.
This two days engagement was facilitated by the seasoned Mining Engineer and Environmental Consultant Ing. Andrew Karmoh Keili. He admonished the companies and the Agency to develop something that will work for all parties that will encourage business to strive without compromising the integrity of the environment.
Representatives from mining companies appreciated the Agency for drafting them into the process but expressed concerns on the possibility of depositing huge chunk of money at the bank to disturb operations and scare potential companies away.
The Executive Director for Network Movement for Justice and Development (NMJD) Mr. Abu Brima welcomed the initiative of the Agency to right the wrongs of the past holding mining companies accountable. He said such a move will lead to the disappearance of artificial mountains and oceans created by mining operations providing more access to lands for local communities. He called on active community participation in all aspects of the reclamation process. Other Civil Society actors who contributed were Joseph Rahall of Green Scenery and Cecilia Mattia of the National Advocacy Coalition on Extractives.
The Chairman Parliamentary Committee on Environment Honorable Yusuf Makery appreciated the timing of the initiative given that both the new Mines and Minerals and the Environment bills were soon to become law. He called on the Agency to review the 2013 mines and minerals regulations as soon as the parent bills were enacted into law.
The Executive Chairman of the Agency Dr. Bondi Gevao said the invasive nature of mining operations calls for the urgency for the rollout of this regulation in order to save the environment. He said environmental degradation in the country was largely attributed to mining operations causing incessant deforestation and massive disappearance of national carbon sinks. He added that the Agency cannot afford to sacrifice the protection of the environment on the Plata of business considerations. He said the Agency will always encourage responsible and sustainable mining operations but there must be a way of minimizing environmental footprint of mining companies to ensure sustainable environmental management.
