African Minerals - 4unm - 15 December 2014 By Joseph...

15 December 2014
By Joseph S. MargaiMines
Over 7000 workers have been laid off at both London Mining and African Minerals companies due to the sale of shares and the scaling down of operations of the two mining companies because of the fall in the price of iron ore in the world market, the Minister of Mines and Mineral Resources has revealed.
Alhaji Minkailu Mansaray told members of the Parliamentary Oversight Committee on Mines last Friday that the laying-off of workers has adverse effects on the country’s economy.
He told the committee that India and China are the two main countries dealing with iron ore, but that these countries have a large quantity of reserve stock. He said this has badly affected the operations of the two mining companies in Sierra Leone.
“The issue of London Mining is that the company owes Standard Chartered Bank about US$260 million and is unable to pay despite series of requests from the bank in London. The company had no option but to transfer the company’s ownership to the Timis Corporation to enable them pay the loan,” the minister said.
He disclosed that Timis Corporation bought 80 percent shares of the London Mining Company, and that no part in the agreement makes provision for the government to involve in the arrangement.
He added that the government has put mechanisms in place to keep the operations of the two companies going to mitigate the impact on the economy of the country.
The minister said his ministry has engaged the workers’ associations of both companies to keep them abreast of this development.
He disclosed that before the outbreak of Ebola, the mining sector was at its pick, contributing immensely to the country’s GDP. As part of their corporate social responsibility, he said the companies were busy constructing schools and bridges and providing scholarships to students when Ebola struck.
The chairman of the committee, Hon. Amadu Kanu, appreciated the minster and team for explaining the issue to parliamentarians. He said that the members of parliament will in turn go back to their people and explained these issues to them.
The Deputy Speaker of Parliament, Hon.Chernor Bah, requested the minister to continue to inform Parliament on activities connected to his ministry.
The minority Whip in Parliament, Hon. Sidi Mohamed Tunis, said that the government should do all in its powers to ensure the continued operations of the two mining companie

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