By VOS Writer
The Chief Operating Officer of Commodity Trading Company (CTC), Dr. Yves Mallat, has exposed Kingho’s railway exorbitant charges which has prevented the company to utilize the rail and port facilities for iron ore shipment. During the parliamentary oversight visits, Dr. Mallat, asserted that as a result of the exorbitant charges imposed on the use of railway facilities, their iron 30,000 tons of iron ore have been stockpiled at the mining sites awaiting shipment, stating how that has caused a financial losses to the company in previous years, thus hampering their business growth.
Kingho was granted license by the Government of Sierra Leone to manage the railway and port in pepel, but it seems like the company is taking advantage of the situation by creating unleveled playing field to discourage other users of the facilities through its exorbitant charges.
In a bid to address the aforementioned Challenge, Dr. Mallat, avvered that the company has decided to invest $10M into the construction of rail and port at the Bankasoka river scheduled for completion in 2025 to mitigate exorbitant port charges, but said the flip side of it is the slow processing of the MLA and the recent change of Mines Minister, emphasizing on the monopoly granted to Kingho Mining company, which limits CTC’s operational capacity. “The Two challenges we face are the prolonged delay in obtaining our MLA, which has been pending for two years and the challenges in shipping our products, says Dr. Mallat. He Presented a phased export plan to the MPs, projecting the shipment of large quantities of ore, which would more generate for the government.
Chairman of the Parliamentary Oversight Committee on Mines and Mineral Resources and Deputy Leader of Government Business, Emmerson Lamina, outlined the purpose of the Parliamentary oversight field visit, which he said, is to assess the company mining operations, community interventions, and compliance with the Mines and Mineral Development ACT, 2024 and other mining policies. He emphasised the requirement for CTC to fulfil its obligations under MMD Act, including the payment of surface rent and other provisions, while cautioning that non-compliance could result in the recommendation to withhold their license.
During the discussion, MPs raised various concerns and sought clarifications from CTC officials.
Hon. Fatmata S. Soukenah questioned the delayed communication of challenges regarding the MLA and shipment to Parliament, which CTC attributed to ignorance rather than disrespect.
Hon. Aminata Sesay suggested that earlier involvement of the committee could have facilitated a swifter resolution of outstanding issues between CTC and Kingho.
Hon. Bintu Fatmata Bockarie highlighted the need for gender diversity in employment, considering the apparent lack of female representation during the meeting. CTC clarified that women were employed in the Freetown secretariat and as chemists in the mining operations.
MPs also inquired about CTC’s efforts in addressing the twin challenges it faced. In response, CTC officials stated that they had engaged with relevant authorities, including the Ministry of Mines, Transport and Aviation, the Chief Minister, the Attorney General, and other influential stakeholders.
Hon. Alhaji Sorieba Turay drew parallels between CTC’s challenges and similar experiences encountered by Kingho in his Chiefdom.
Honorable Musa Fofanah, expressed his profound displeasure regarding the strangulation of the China Tongguan Mining Group Company (CTC) operations, highlighting the significant job opportunities at stake. He described the plight of CTC as a detrimental situation for both national interests and foreign investors.
Honorable Jawah Sesay engaged in a series of inquiries with CTC officials, seeking clarifications regarding the reasons advanced by Kingho Company Limited for their actions impacting the shipment of bauxite. The CTC officials conveyed lack of knowledge on said issue, emphasizing their commitment to adherence had they been duly informed.
Honorable Ben Mansaray expressed his gratification upon hearing news of the proposed port construction. However, he expressed concerns that the current situation between CTC and Kingho poses a threat to foreign direct investment, violating established standards of fair trade competition.
In the interest of advancing mining operations in the country, the committee members resolved to extend an invitation to Kingho officials to participate in a formal discussion.
