In a bid to ensure compliance to the local content laws, a team from Sierra Leone Local Content Agency (SLLCA) led by the Director General, Fodeba Daboh has from Tuesday, April 1st, 2025 to Friday, April 4th, 2025 conducted Local Content Audits on key mining companies and their contractors and subcontractors in the North/West region of Sierra Leone.
On the 1st of April to the 3rd, the Agency audited Kingho Railway and Port, at Pepel in PortLoko district and Kingho Mining Company at Feregbenya in Tonkolili district, both companies being subsidiary to the Leone Rock Metal Group, a company that mines Iron Ore. On April 4th, the Agency also audited Marampa Mines Limited (MML) and its contractors and subcontractors.
The purpose of this audit, as disclosed by DG Daboh, was to assess Leone Rock Metal Group and its contractors and subcontractors’ adherence to the Sierra Leone Local Content Agency Act, 2016.
The SLLCA team observed that the management of Leone Rock Metal Group (LRMG) appeared unwilling to provide essential documents like vendors list, work permit and curriculum vitae of foreign staff which were essential documents for the audit.
The Director General (DG) of SLLCA, Fodeba Daboh, expressed disappointment over missing documents that hindered the evaluation of LRMG subsidiary companies’ compliance with local procurement and workforce development regulations.
Key issues included missing financial documents for local vendors, absent employment records, and no evidence of local content plans or training.
The audit revealed that both Kingho Railway and Port and Kingho Mining Company lacked crucial documents like procurement records, purchase orders, contracts with local suppliers, and vendor financial details, raising transparency concerns.
Additionally, there were no CVs for foreign staff, including the HR Manager, and no proof of applications for expatriate quotas or work permits, violating Sierra Leone’s legal requirements.
Furthermore, the company failed to provide any work permits for foreign staff. The audit also highlighted a lack of training programs aimed at local capacity development, further emphasizing the company’s non-compliance with the local content requirements.
The audit also found no records of local capacity-building training or assessments, despite claims of training.
DG said that section 40of the Sierra Leone Local Content Act, 2016, mandate operators to submit a Local Content Plan before beginning operations, ensuring compliance with local content requirements, noting that after submission, the plan is reviewed by the Agency, which may issue a certificate of authorization if the plan meets the requirements.
He emphasized that the plan must prioritize Sierra Leonean goods, services, and employment. The audit revealed that Kingho and its contractors lacked a Local Content Plan, a management team, and a succession plan, violating the Act. DG Fodeba Daboh gave the company 21 days to submit the plan, offering support in its preparation.
DG explained that work permit issuance starts with the SLLCA which is pursuance to section 56(3) of the Agency’s Act, noting that expatriate quotas must be approved by the SLLCA.
DG Daboh specifically requested the insurance details for the mining equipment and properties, noting that, according to the law, such assets should be insured with local indigenous insurance companies. He warned against the company opting for offshore insurance contracts.
DG Daboh also encouraged the companies to insurance their assets with local insurance companies.
Despite these shortcomings, the DG praised the company’s efforts in corporate social responsibility for 2023 and 2024, but emphasized that local content compliance is more than just employing locals—it’s about ensuring that the full value chain, from procurement to insurance, benefits Sierra Leonean businesses and services.
In response, Samuel Kamara, the Compliance Officer for Leone Rock Metal Group, acknowledged the audit findings and expressed a commitment to resolving the identified issues. He explained that some of the requested documents were located at the company’s headquarters in Freetown and promised to work with the finance department to ensure that the necessary records, including insurance details, are provided in the future.
While the audit team remains disappointed by the lack of transparency, they expressed hope that the company will work to rectify these issues in subsequent audits, thereby ensuring better compliance with Sierra Leone’s local content laws.
The audit which was concluded at Marampa Mines Limited (MML) at Lunsar in PortLoko district saw a relatively better compliance to Local Content laws from MML and some of its contractors and subcontractors as compared to Leone Rock Metal Group. The Agency observed that MML is giving contracts to both local and foreign contractors and subcontractors.
Whilst DG Daboh applauds MML for it compliance, he however encouraged them to finalize their Local Content Plan and submit it to the Agency within 21 days.
Based on the audits, some of the contractors and subcontractors of MML, particularly the China Railway Seventh Group (CRSG), are violating the Agency’s act, and DG Daboh urged MML to ensure that its contractors and subcontractors comply with the local content laws.
He encouraged all the mining companies to give priority to indigenous Sierra Leoneans in awards of contracts. He frowned at Mining companies awarding haulage contracts to foreign companies instead of Sierra Leonean companies.
