Mano River Resources Inc.


Nov 20, 2008 



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Sierra Leone

Country Overview

Map of Sierra Leone

The Republic of Sierra Leone lies on the west coast of Africa, with Guinea to the north and east and Liberia to the south. For over two thousand years, West Africa has been home to numerous waves of migrating people, travelling from north and east Africa. Flourishing multi-ethnic societies and cultures evolved. Situated on the edge of the Mali Empire, the area also benefited from the vast trading routes that bought north and West African influences together.

Known to its native inhabitants as Romarong (the mountain), Sierra Leone was re-named by Portuguese explorer, Pedro de Sintra (1462), when the first European contact with the coastal tribes was made. Portuguese traders intermarried creating a group of Afro-Portuguese whose religion was a mixture of Catholic and traditional African beliefs. The creole they spoke is the antecedent of the modern Krio language, the lingua franca of Sierra Leone, although English is the official language of the country. Today, the population of 5 million (UN 2003) is approximately 60% Muslim, 30% traditional religions and 10% Christian: although many Christians and Muslims also hold traditional beliefs.

In 1787, the British outlawed slavery on British soil and established a settlement in Freetown, the capital of Sierra Leone, where freed slaves were relocated. The largest group were the Re-captives, people from all over Western Africa, rescued from slave ships intercepted off the coast after the passage of the Anti-slavery Act of 1807.

The Krio remain a minority group, forming 2-3%, of the population but despite their minority status, in the 19th century the Krios began to assume a dominant position, in relation to the indigenous population. When Freetown became a Crown Colony in 1808, a large Christian community of British missionaries, teachers, and administrators was formed. The Krio, having a western-style education and being western influenced, entered the British colonial service, developed schools and businesses and established the Fourah Bay College in 1827. The College earned Freetown the name "Athens of Africa" attracting students from Ghana, Nigeria, and other parts of Africa.

British administration at the turn of the century was confined to Freetown, relying on treaties with Kings and local chiefs to protect trade routes in the interior. However, by 1896 British influence had extended over the hinterland in response to French activities to the east. In 1914, the British built a railroad linking Freetown to the mining areas of the interior. Trade flourished. Cultural connections, language and shared ethnicity enabled traders to move freely between Guinea, Liberia and Sierra Leone and commerce flowed over the Mano River between Sierra Leone and Liberia.

Independence

In 1951, a new constitution provided the framework for decolonisation with universal adult suffrage and, on April 27 1961, Sierra Leone became an independent nation, with Milton Margai (SLPP) as Prime Minister. After a disputed General Election in 1967, Siaka Stevens, of the African Peoples Congress (APC), was appointed Prime Minister by the Governor General. A few minutes after taking the oath of office, Brigadier Lasana ousted Stevens (APC) in support of Margai (SLPP).

A year later, civilian rule was restored with Stevens as Prime Minister. A coup attempt in 1971 led to Stevens declaring a Republic and requesting that Guinean troops enter the country to support the Government. They remained for two years. In 1973, Stevens created a de-facto one-party state. The one-party state became legal by referendum in 1978and in 1986, Maj. Saidu Momah succeeded Stevens as President.

In 1991, a further referendum provided for a new party constitution and a multiparty democracy. However, in March of that year, the Revolutionary United Front (RUF) launched a war from near the border with Liberia to overthrow the Government. Sierra Leone's Army at first tried to defend the Government with the support of the Military Observer Group (ECOMOG) of the Economic Community of West African States (ECOWAS), but in 1992, Momoh was overthrown by a military coup and Valentine Strasser became President,. In 1996, Brig. Gen. Julius Maada Bio, who agreed to hand over power after the general elections, replaced Strasser. Later that same year, Ahmad Tejan Kabbah won the majority vote in a multiparty presidential election and became Sierra Leone's first democratically elected President. The RUF did not participate in the elections, refused to recognise the results, and the conflict continued. In November of 1996, a cease-fire agreement known as the Abidjan Accords was reached between the Government and the RUF. Despite the agreement, terror attacks continued and in May 1997 Lieut. Col. Johnny Paul Koroma of the Armed Forces Revolutionary Council (AFRC) overthrew Kabbah. The AFRC & RUF then joined forces forming a ruling military junta and President Kabbah and his government went into exile in Guinea. In 1997,the UN imposed an oil and arms embargo against the military government, and authorised ECOWAS to ensure its implementation using ECOMOG troops.

In February 1998, ECOMOG launched a military attack in response to attacks from the rebel/junta forces. President Kabbah returned to office on March 10th, after 10 months in exile. The embargo was lifted and the office of the Special Envoy was strengthened to include UN Military liaison officers and security advisory personnel.

In June 1998, the United Nations Observer Mission in Sierra Leone (UNAMSIL) was established. The mission monitored and advised efforts to disarm combatants and restructure the nation's security forces.

In December 1998, Rebels and Liberian mercenaries stormed the capital, demanding the release of the imprisoned Revolutionary United Front (RUF) leader, Foday Sankoh. ECOMOG troops retook Freetown in January 1999 and again installed a civilian Government. Efforts were made to open up a dialogue with the rebels and President Kabbah released Sankoh so he could participate in peace negotiations. Pressured by Nigeria and the U.S. Kabbah accepted a power-sharing agreement. All parties to the conflict signed this agreement in Lome on 7th July 1999 to end hostilities and form a government of national unity. Sankoh (RUF) was made vice president of the country. Hostilities and violence did not abate, so on December 1st 1999 the UN placed a ban on the sale of rough diamonds, which were being used to fund the RUF, and sanctions were imposed on Liberia because of its support for the rebels. The Lome accord dissolved in May 2000 after the RUF abducted about 500 UN peacekeepers and attacked Freetown. Sankoh was re-captured and died in government custody in 2003, while awaiting trial for war crimes.

Disarmament

General elections scheduled for early 2001 were postponed in Feb 2001, due to civil unrest. In May 2001, UN peacekeepers began to make headway in disarming the various factions. Although disarmament of rebel and pro-government militias proceeded slowly and fighting continued to occur, by the end of 2001, most of the estimated 45,000 fighters had surrendered their weapons. On January 18 2002, the President of Sierra Leone in the presence of other Heads of State from West Africa and a UN Special Representative declared an official end to the civil strife, which had engulfed the country since March 1991. An estimated 50,000 persons died in the conflict.

The state of emergency lifted, elections were held in May 2002. Kabbah was re-elected President, and the Sierra Leone People's party won a majority of the parliamentary seats. Within Sierra Leone, there is now confidence that adequate security arrangements are in place, not only to ensure continued peace and stability, but also to allow economic activity to recommence throughout the country.

The 2004 report from the United Nations Mission to Sierra Leone indicates that the Government has made significant strides to facilitate the consolidation of peace in the country and the overall security environment has remained relatively stable. The UK has provided $5.1 million to support the communication and logistical needs of the army. State administration structures are being decentralised and the establishment of local councils nationwide has improved the system of local government. UNAMSIL and the Government are collaborating to organise a repatriation programme for the reintegration of Sierra Leonean combatants returning from Liberia. Particular attention is being paid to the repatriation and reintegration of child soldiers, and the process of family tracing and reunification has begun. The human rights and justice system has gradually improved. The Truth and Reconciliation Commission (TRC) is on course and the chances of it completing its assignment on schedule look promising. A law reform commission has been established to review existing laws and made recommendations for the repeal, amendment, or re-enactment of new laws. The UN Mission, in collaboration with its partners, has raised the profile of women's rights in Sierra Leone and the performance of the justice system has improved in this regard.

Economy

Sierra Leone's economy is predominantly agricultural. The principal food crops are rice, cassava, corn, millet, and peanuts. The leading cash crops, most of which are exported, are palm kernels, palm oil, cocoa, and coffee. Poultry, cattle, sheep, and goats are raised. The country's few manufactures include refined petroleum and basic consumer goods for the domestic market. The two most important industries to Sierra Leone are fishing and mining.

In June 2003, the UN ban on the sale of Sierra Leone diamonds expired and was not renewed. The Government has continued to enhance its control over diamond mining. Official exports of diamonds from January to July 2004 totalled US$81 million compared to US$ 42 million in the same period in 2003. It was recommended that the mandate of the UN Mission to Sierra Leone be extended to June 2005 to ensure the further stabilization of the country and sub-region.

Prior to the 11-year civil war, the major source of hard currency consisted of the mining of diamonds, iron ore, gold, bauxite, and rutile. There are plans to reopen bauxite and rutile mines shut down during the conflict. Sierra Leone has limited rail and highway networks, which mostly serve the central and western parts of the country. Freetown has excellent port facilities; smaller ports are located at Bonthe (on Sherbro Island) and Pepel (near Freetown).

The cost of Sierra Leone's imports exceeds its earnings from exports. The principal imports are machinery, manufactured consumer goods, foodstuffs, transportation equipment, and fuels; the chief exports are diamonds and other minerals, cacao, coffee, and fish. Sierra Leone's leading trade partners are the European Union countries, the United States, and Côte d'Ivoire.

The future of the economy depends upon the maintenance of domestic peace and the continued receipt of substantial aid from abroad, which is essential to offset the severe trade imbalance and to supplement government revenues.

2003 GDP 0.79 billion dollars GNP per capita 146 dollars

Minerals

Throughout the 10 year period, Sierra Leone has constantly improved its minerals legislation. In 2002, MANO resumed its exploration programmes over the two Kono licences, where the main target is kimberlite dykes, subsequently entering into a joint venture with Petra Diamonds for their exploitation. Elsewhere, BHPBilliton are in the second stage of a three year programme over MANO's reconnaissance licence in the east of the country and joint venture partner, Golden Star Resources, is investigating gold licences in the Sula Mountains.

Sierra Leone is rich in minerals and is one of the world's most important sources of large diamonds. The country also hosts gold, platinum, rutile, chrome, bauxite and iron. Major producers have included the Nord/Consolidated Rutile world-class rutile deposit, Alusuisse's bauxite operations and the famous Kono diamond fields worked for many years by Selection Trust at Yengema and Koidu.