Mineral Wealth Fund Transition… President Bio Slams Finance Minister’s Interest
By Kelvin Jay
President Julius Maada Bio has directed the orderly wind-up of the Mineral Wealth Fund Sierra Leone Limited (WESL), the termination of its associated management arrangements, and the cessation of the Fund’s participation in the Tonkolili North Iron Ore Project under its existing structure.
The decision effectively removes the Sierra Leone Mines and Minerals Development and Management Corporation (SLMMDMC) from its previously assigned role as the holding entity for the Mineral Wealth Fund—an arrangement earlier advanced by the Minister of Finance, Sheku Fantamadi Bangura. The move is widely interpreted as a significant policy reversal and a major setback for the Finance Minister’s mineral governance framework.
The presidential directive has also cast uncertainty over the Government’s USD 300 million agreement with China Overseas Engineering Group Company Limited (COVEC) for the development of the Tonkolili North Iron Ore Deposit, raising questions about the future structure of the project.
However, the President’s latest decision has now effectively dismantled that framework.
Critics argue that the policy shift contradicts earlier assurances by the Ministry of Finance that the project aligned with the Government’s broader initiative to manage strategic mineral assets through a 100 percent state-owned project company under SLMMDMC.
The controversy is further complicated by the involvement of Gento Group of Companies, a local investor that had previously expressed interest in developing the Tonkolili iron ore project. The company reportedly paid lease rents to landowning families in Kasafoni, which, according to sources, granted it exclusive development rights over the mining site.
However, it is alleged that the Ministry of Finance failed to create a level playing field for the local investor—an action critics say weakened Gento Group’s position and paved the way for the entry of the Chinese firm. Between August 21 and 23, 2025, the Minister of Finance led a high-powered delegation to Deing, Sambaia, and Dansogoia to secure new land lease agreements. Although the delegation initially faced stiff resistance from local communities, agreements were eventually signed, effectively altering the earlier arrangement between Gento Group and the landowners.
With the President’s decision to restructure the Mineral Wealth Fund arrangement, observers say the Finance Minister’s earlier assertions have been significantly undermined. Some political commentators have gone further to suggest that the President may have been misled on the viability or governance implications of the original framework—claims that have not been officially addressed by State House or the Ministry of Finance.
Meanwhile, legal analysts caution that Sierra Leone could be heading toward a potential legal quagmire should the Government seek to terminate or substantially alter the agreement with COVEC, given the scale of the investment and the binding nature of international commercial contracts.
As developments continue, critical questions remain over policy coherence, investor confidence, and the future governance architecture for Sierra Leone’s strategic mineral resources.
