$20M settlement: Metals trader Gerald Group settles S.Leone iron ore dispute | Bilyonaryo Business News
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$20M settlement: Metals trader Gerald Group settles S.Leone iron ore dispute

Global metals trader Gerald Group has said it will resume mining iron ore in Sierra Leone after resolving a long-running dispute with the mineral-rich West African country.

Global metals trader Gerald Group has said it will resume mining iron ore in Sierra Leone after resolving a long-running dispute with the mineral-rich West African country.

The settlement involves Gerald Group paying Sierra Leone $20 million and giving the government a 10-percent stake in its Marampa mine.

Sierra Leone imposed an export ban on Gerald Group subsidiary SL Mining in July 2019 over alleged breaches of contract.

The government subsequently revoked the company’s mining licence after it halted operations at Marampa, and filed for international arbitration.

On Monday, Gerald Group said in a statement that Sierra Leone will have a 10-percent non-dilutable stake in a new company to replace SL Mining that will begin operations on June 1.

Under the terms of the deal, Gerald Group will have the right to export its iron ore stockpile of more than 700,000 tonnes.

But it must also pay a total of $20 million (over 16 million euros) in two instalments to Sierra Leone before December 31.

Sierra Leone boasts huge mineral and diamond deposits, but it remains one of the world’s poorest nations and is still recovering from decades of war and disease.

Gerald Group estimates that the Marampa mine holds about one billion tonnes of iron ore. (AFP)

 
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