Salone News

London Mining Responds to Open Letter from Lunsar Descendants

24 July 2013 at 00:13 | 1519 views

Editor’s Note: Descendants of the town of Lunsar, northern Sierra Leone, recently wrote an open letter to London Mining Plc, a UK-based company operating in the town in which they raised several concerns. Here is a response from Mark Wynn (photo), the company’s interim Managing Director at Marampa:

London Mining Plc,
Nations House
103 Wigmore Street
London
United Kingdom
W1U 1QS
Phone +44 (0) 20 7408 7500
Fax +44 (0) 20 7647 4440
Email info@londonmining.co.uk
www.londonmining.co.uk
Registered office in England & Wales: Nations House, 103 Wigmore Street,
London W1U 1QS
(No. 5424040)

Response to open letter in relation to London Mining’s Marampa Mine in Sierra Leone.

London Mining has noted an open letter from a number of descendants of Lunsar commenting on the
evolution of the Marampa Mine pre and post war, referencing concerns relating to the mine’s current
and possible contribution to the local community and town of Lunsar.

London Mining appreciates your interest in its activities and would like to take this opportunity to
address the points raised in the letter and underline our firm commitment to operating Marampa
Mine as a responsible and sustainable mining business.

At Marampa we are building a world class
mine which will not only support Sierra Leone’s social and economic growth, but act as an example
for the future development of similar projects. Through royalties, taxes and local procurement,
Marampa’s contribution to Sierra Leonean GDP could be as high as 10 per cent in 2014. The broader
impact of the mine is also likely to help lift up to 50,000 people out of poverty, through the creation of
jobs both directly, indirectly and induced associated with the project.

At London Mining we have three pillars of commitment to Sierra Leone, first as an investor and
employer, second in our determination to help revive the country’s mining industry which can build
economic growth. Finally, we are working to support the country’s poverty reduction strategy
(Agenda for Prosperity) through education, training, environment and economic diversification.

LUNSAR
London Mining strives to operate in harmony alongside the town of Lunsar and its inhabitants, many
of whom are our employees. The company has a community investment policy aligned with the
priorities of Port Loko Mid-term Development Plan and the Agenda for Prosperity of the Government.
London Mining has invested $2.5 million to date in a range of activities and projects specifically for
the communities around Lunsar including:

INFRASTRUCTURE

- Refurbishment of the Lunsar town hall;
- Refurbishment of the residence of the local unit commander of the Sierra Leonean Police in
Lunsar;
- Maternity ward construction at Lunsar Clinic;
- Road resurfacing;
- Increasing access to potable water.

EDUCATION AND COMMUNITY

- Functional adult literacy support;
- Adult skill and vocational training;
- Primary and secondary scholarships;
- Healthcare, including malaria prevention and AIDs prevention and care;
- Support to Port Loko healthcare during the Cholera outbreak including medical fluids and
emergency antibiotics, which undoubtedly saved lives;
- Sports for youth by sponsoring the Marampa football team;
- Agriculture, increasing food production and security.

EMPLOYMENT
Marampa mine currently employs approximately 1,400 direct employees and 1,835 indirect through
subcontractors, of whom 92% are native Sierra Leoneans with nearly half from Lunsar. It is company
policy to employ locally where those skills are available. . Please find attached a flyer on our Private
Public Partnership with St Joseph and GIZ, the German Government Cooperation Agency.
For wider economic development through more diverse employment London Mining is supporting a
programme of economic and livelihood diversification with the Cotton Tree Foundation.

LAND MANAGEMENT
London mining pays one of the most generous lease rates in Sierra Leone to landowners based on an
agreement negotiated in 2012 for 7 years. London Mining complies with section 115 of the Mines &
Minerals Act which stipulates the edge of this concession must be clearly marked, and this is done
with a series of beacons highlighting the concession area, which has not changed since the Mining
Lease Agreement was ratified by the Parliament of Sierra Leone in 2010. The beacons allow the public
to see the boundary of our concession so that there is no confusion around areas of operation.

PROCUREMENT
London Mining always seeks to obtain its products and services locally in order to support the wider
economic community around its mine. Of a near $30 million procurement spend in 2012 over $23
million was sourced in Sierra Leone.
We are currently working with the Department for International Development (DFID), International
Finance Corporation (IFC), local banks and local traders to continue to boost the amount we can
source locally and have hosted public briefing sessions in Lunsar to help local businesses understand
how they can work with us and be our future suppliers.

HEALTH, SAFETY & ENVIRONMENT
London Mining is committed to mining safely and has a policy of zero harm. It is simple: We will not
mine unless we can mine safely. As such we have a comprehensive approach to health and safety
training for our employees, contractors and all those who live near to the mine.
As a company London Mining is committed to be fully compliant with the International Finance
Corporations performance standards on overall environmental and social sustainability. These
standards are supported by a group of guidelines that we are implementing.

INVESTING IN SIERRA LEONE
London Mining has made a major investment in Sierra Leone in order to return the Marampa mine to
operation. Since 2006 we have invested $300 million at Marampa as part of a $2billion investment
plan in Sierra Leone over the next 10 years. Alongside this financial investment we have signed a Mining Licence Agreement, approved and ratified by the Sierra Leonean Parliament by which we
have voluntarily committed to setting aside 1% of gross revenue, well above the percentage required
by the government, derived from Marampa sales to support community investments.

This is in addition to our tax and royalty commitments and in country employment and procurement
spend. The most significant taxes London Mining contributes (now the mine is once again producing)
are royalties on product sales, corporate tax on profits from sales and withholding taxes on payment
of wages, service fees, interest and dividends. There will also be import duty and other duties, levies
and charges.

CONCLUSION
London Mining is committed to the Lunsar community and Sierra Leone. It is a steadfast investor in
Sierra Leone’s economic and social development not just as an employer and tax payer but as a firm
supporter of the country’s wider growth and development agenda across education, enterprise,
health and the environment.
London Mining is a proud supporter of the Extractive Industries Transparency Initiative (EITI), is
compliant with the UK 2010 Bribery Act and has implemented the Voluntary Principles on Security
and Human Rights and at all times operates within the legal and regulatory framework enshrined in
Sierra Leonean law.

We hope this letter underlines and reaffirms the commitment we have as a Company not only to
operating a flagship mine in Sierra Leone but across our operations internationally. We welcome
discussion and engagement on this subject.

Yours faithfully,
Mark Wynn,
Interim Managing Director, Marampa.

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