The Koidu Kimberlite Project is situated within the Tankoro Chiefdom of the Kono District in the Eastern Province of Sierra Leone, approximately 2km south of the district capital, Koidu, and approximately 330km east of Freetown, the capital city.
In the East of Sierra Leone
Koidu Town, or Sefadu was once the third most populated city in the country. A point of conflict and displacement during the civil war, it now represents post-war unity and ethnic diversity, offering hope to people across the nation seeking a new start.
The Mining Lease Area
The small 4km² mining lease area rests at the foot of Monkey Hill, one of the few remaining natural forest areas around Koidu, relatively untouched by artisanal mining and previous mining activities in the 1950s and 1960s. Koidu Holdings has transformed Monkey Hill into a protected haven for wildlife, being home to troops of monkeys, a large variety of different bird species, deer, lizards, squirrels, ferrets, snakes and, of course, insects. With subsistence farming and hunting a prominent part of local culture, the unpolluted water sources and restricted access in the Koidu lease area make it highly attractive to the threatened fauna of the region. Koidu Holdings attempts to prevent the indiscriminate burning of the forests and their hundred-year old cotton trees, which has become common practice throughout Sierra Leone by the wood logging industry and for the purpose of planting subsistence crops.
Koidu has historically been a popular location for artisanal mining activities.
Mining lease area in 2003. The town has swelled in size since mining activities commenced after the war.
The lease area is a sanctuary for local flora and fauna, with the plant dam attracting an abundance of birdlife.
The mine is situated on the outskirts of Koidu Town. Since development of the mine commenced in 2003, the town has grown considerably, with the economic benefits flowing from the mine drawing many new inhabitants to the area. The growth is clearly visible by the number of new houses that have been built.
Koidu town has experienced a tremendous economic revival since 2004. After the civil war Koidu was devastated, having born the brunt of the violence and destruction due to its proximity to the rich alluvial diamond deposits. The gloom that hung over Koidu in 2003 is now but a memory, in vivid contrast with the currently bustling town where the prosperity is evident in the way the people dress, drive new motorbikes and motorcars and enjoy the benefits of cellular communication.
Mining Lease and Surface Lease Agreements
The rights to the Koidu Kimberlite Project, referred to as The Koidu Kimberlite Mining Lease Agreement ML 6/95 ('KKP ML'), were awarded and ratified as N.P.R.C. Decree No. 12 on the 22 of July 1995, in accordance with the provisions of the Mines and Minerals Act (1994), and were adopted as an act of parliament on the 23rd of December 1996. The terms and conditions of the lease agreement have been scrutinized for fairness and reasonableness by various NGOs and institutions over the years and each time the agreement has been found to be sound and in line with international standards.
In terms of the Koidu Kimberlite Project Mining Lease Agreement, Koidu Holdings is required to pay an annual Lease Rent of $200,000 to the Director of Mines on the anniversary of the commencement date. Since 2004, Government has returned approximately 30% of the Lease Rent to the local community of the Tankoro Chiefdom through the Diamond Area Development Fund. The Company also pays an annual surface rent amount of $32,258 for the lease of the land above the mining lease area and the surface lease area directly to the Tankoro Chiefdom, through the District Officer. In January 2004 Koidu Holdings was granted the surface rights of an additional area 217,735.4m² area required for infrastructure development, referred to as the Surface Lease Area.
Over and above the mining lease rent and surface rents payable, Koidu Holdings pays 5% of revenue on each diamond sale concluded to the Director of Mines, via the National Revenue Authority. In addition, the Government Gold and Diamond Office (GGDO) charges a valuation fee of 0.5% of the export value of each sale.
Koidu Holdings is liable to pay income tax at a rate not exceeding 37.5% of its net chargeable income. The Commissioner of Income Tax receives monthly PAYE contributions for each national and expatriate employee, which is based on a sliding scale of between 20% and 30% of taxable income. The Company contributes 10% of basic income for each employee to the National Social Security Insurance Trust (NASSIT), while employees contribute 5%.
Charges on Imports of 5% of CIF value are paid to the Commissioner of Customs and Excise and include Intertec inspection fees. Contributions to the Agricultural Development Fund are based on a rate of 0.1% of annual sales value of diamond production.
Map Imagery
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Kono district and Lease Area
Historical mining activity
Detailed plan
of
Lease Area
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