Africa-Press – Sierra-Leone. Sierra Leone has signed a new agreement with a Chinese company to develop the Tonkolili North Iron Ore Deposit and the supporting infrastructure.
The Mineral Wealth Fund (Sierra Leone) Limited and China Overseas Engineering Group Company Limited (COVEC) signed the supplementary agreement today in Beijing
The deal builds on a Framework Agreement signed in September 2024 and brings in up to $300 million in financing from COVEC. The funds will support the construction of the mine, transport networks, and beneficiation facilities.
The financing will be arranged through an EPC Contract (which covers engineering, procurement, and construction), a Deferred Payment Agreement, and a Joint Venture Agreement. This structure means the project will not rely on Sierra Leone’s national budget.
Speaking after the signing, Sierra Leone’s Minister of Finance and Chairman of the Mineral Wealth Fund, Sheku Ahmed Fantamadi Bangura, said the agreement is an important step toward turning the country’s mineral wealth into national development. He noted that the project is being carried out under the legal framework of the Sierra Leone Mines and Minerals Development and Management Corporation Act 2023.
Chairman of COVEC, Jiang Zhe, said the company is committed to delivering the project and working closely with Sierra Leone to meet shared goals.
The Embassy of the Republic of Sierra Leone in China welcomed the agreement and described it as part of the ongoing cooperation between Sierra Leone and China.
This agreement fits into the government’s plan to use the Mineral Wealth Fund (Sierra Leone) Limited, a fully state-owned company, to lead mining and development projects. The approach is designed to generate revenue and fund infrastructure without placing pressure on the country’s regular budget.
With the agreement now signed, the Tonkolili North Iron Ore Project is expected to move forward in the coming months.
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