Overview
Sierra Leone is rich in mineral resources, including tantalum, coltan, diamonds, gold, rutile, bauxite, iron ore, lithium, and offshore petroleum reserves. Despite past challenges such as civil conflict, the Ebola outbreak, and global commodity price shocks, mining remains a key economic driver, contributing 0.8% to GDP, over 70% of export earnings, 5.2% of government revenue, and 3.5% of employment in 2024.
The sector is recovering due to foreign investment, improved regulations, and stable prices for gold and bauxite, though iron ore exports remain volatile. Governance and transparency have improved, with the National Mineral Agency (NMA) leading policy enforcement and compliance. Digital systems for licensing and contract disclosure have increased public access to data.
Legal reforms have strengthened the sector. The Mines and Mineral Development Act (2022) requires community consent for operations, while the Environment Protection Act (2022) enforces environmental safeguards. Fiscal laws, such as the Extractive Industries Revenue Act (2018) and annual Finance Acts, ensure better revenue management. Additionally, the Diamond Cutting and Polishing Act (2007) aimed at promoting value addition is under review. The government offers a range of investment incentives in the mining sector, including tax holidays, duty exemptions on mining equipment, and supportive legal frameworks to attract responsible and long-term investors.
Artisanal and small-scale mining (ASM) remains a vital source of income for rural communities. The licensing framework includes five categories: reconnaissance, exploration, artisanal, small-scale, and large-scale mining, with artisanal licenses reserved for Sierra Leoneans. Mining companies are required to pay royalties based on market value and adhere to environmental and safety standards, including securing an Environmental Impact Assessment (EIA) license from the Environmental Protection Agency (EPA).
A 2019 geophysical survey continues to guide exploration, with updated mapping and valuation underway in 2025. Sierra Leone adheres to the Kimberley Process and the Extractive Industries Transparency Initiative (EITI), showing progress in transparency and ownership disclosure, though challenges remain in revenue sharing and infrastructure. International partnerships and ongoing reforms position the sector for sustainable growth.
Leading Sub-sectors
Sierra Leone’s mining industry is driven by three key sub-sectors: diamonds, iron ore, and rutile, all of which are critical to the country’s economy and export revenues. While industrial operations exist, a significant portion of production remains informal. Diamonds, primarily mined through artisanal and small-scale methods in the eastern and southern regions, continue to be a major resource despite much of the production being informal.
Iron ore, found in large deposits in the northern regions, is another vital sector. After overcoming market and operational challenges, iron ore production is regaining momentum, signaling strong growth potential. Rutile, a titanium-bearing mineral, is equally important, with high-grade deposits located in the southern districts.
The bauxite and gold sectors are also expanding. Bauxite mining in Port Loko and Kambia districts is gaining attention for its role in aluminum production; while gold mining, largely driven by artisanal efforts in Bo and Tonkolili districts, is attracting interest due to rising prices. Additionally, Sierra Leone holds untapped potential in rare earth elements, as well as coltan, lithium, tantalum, and zircon. While these resources remain in the exploration phase, they could become significant export commodities in the future.
Opportunities
Mining activities in Sierra Leone rely heavily on support industries, driving strong demand for machinery, equipment, construction, skilled labor, and specialized services. This creates significant opportunities for U.S. companies, particularly those with expertise in geological and exploration services, engineering and feasibility studies, plant maintenance, and the supply of spare parts. Additionally, there is increasing demand for mining consumables such as explosives, tires, and lubricants. The government is committed to granting concessions and waivers to major investors as part of its investment promotion efforts, making the country an attractive market for U.S. companies seeking to enter or expand in the region.
U.S. companies seeking to engage with major mining companies in Sierra Leone must register locally and comply with the National Minerals Agency’s regulations and local content requirements, which prioritize Sierra Leonean suppliers. They build credibility by obtaining certifications, demonstrating capacity, and providing strong references. Companies target procurement departments through public tenders and the Sierra Leone Chamber of Mines, while forming partnerships with established local suppliers to enhance market access. By offering competitive pricing, ensuring reliable delivery, providing robust after-sales service, and creating community impact, businesses attract leading mining companies such as Marampa Mines, Kingho Mining, and Sierra Rutile. Challenges: Under Sierra Leone’s local content policies, first consideration on contracts and concessions should be given to Sierra Leonean firms in sectors such as mining and the petroleum industry.
Resources
Sierra Leone Ministry of Mines and Mineral Resources
Website
Email: info@mommr.gov.sl
Telephone: (+232) 73 742 497