By Alpha Abu
Marampa Mines Limited Company, a subsidiary of the Gerald Group, has announced the arrival of a ship to herald the commencement of shipment of iron ore out of the country, the first, since the company and the government of Sierra Leone reached an out of court settlement in a dispute between the two parties, some two months ago. A statement released by the company indicated the arrival of its “first Ocean Going Vessel” and the start of loading of 65% iron ore concentrate at the Freetown Port.
The company says it will in the coming months be exporting a stockpile amounting 707,000 tons of already treated iron ore known globally as Marampa Blue TM, the highest quality of the mineral, in the entire African continent. According to Marampa Mines , the shipment was in conformity to a contract over selling of Iron Ore stockpile agreement the company signed with the government later in May this year , following the binding settlement between the two, that was signed on 7 May 2021.
The Gerald Group Chairman and CEO, Craig Dean was quoted in the company’s statement as saying it marked the restart of iron ore shipments for which Marampa Mines and Gerald Group were excited about, in reacting to the latest developments. He thanked President Julius Maada Bio for his full support in settling the disagreements and for allowing their export operations to resume in record time.
The company says it is expected to provide 1,400 jobs of which 90% will be made up of local workforce.
“As per the binding settlement, the Company will pay to the Government a fixed sum of USD 20 million in two instalments of USD 10 million by 31 October 2021 and 31 December 2021,respectfully as the Stockpile is monetized”, the company statement reads.
Gerald Group is said to own 90% of Marampa Mines Limited while the government owns the remaining 10% . The government in July 2019 banned the company from exportingiron ore, over royalty and work schedule disagreements, charges the company strongly denied and which then filed a court case abroad, against the government. The International Chamber of Commerce held an emergency arbitration tribunal that asked that the company be allowed to resume operations. The government challenged the ruling but the protracted matter was eventually settled out of court in what was said to be a win-win situation for all parties.
Copyright © 05/07/21 Politico Online
