SIERRA LEONE EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (SLEITI) SLEITI 2017-2018 REPORT December 31st , 2019 1 | P a g e Contents List of abbreviations/Acronym List of Abbreviations/Acronyms .....................................................................................................................................4 Executive Summary ........................................................................................................................................................8 1.0: BACKGROUND .....................................................................................................................................................14 1.1 EITI Implementation in Sierra Leone ....................................................................................................................15 1.3 METHODOLOGY ....................................................................................................................................................16 2.0 Overview of the Extractive Sector ..........................................................................................................................18 3.0 Legal, Institutional Framework, Fiscal Regime, Exploration, Production and Exports.......................................22 3.1. Mining Sector – Legal, Institutional and Fiscal Regime ...................................................................................22 3.1.1 Legal Framework .........................................................................................................................................22 3.1.2. Institutions ....................................................................................................................................................25 3.1.3. Fiscal Regime of the Mining Industry .............................................................................................................26 Table 3.1: Royalty rates applicable in the mining sector .................................................................................................27 Table 3.2:........................................................................................................................................................................30 3.2. Oil & Gas Sector – Legal, Institutional and Fiscal Regime ...............................................................................30 3.2.1. Legal Framework..........................................................................................................................................30 3.2.2. Institutions ....................................................................................................................................................32 3.2.3. Fiscal Regime of the Petroleum Industry ......................................................................................................33 Table 3.3:........................................................................................................................................................................33 3.2.4. Other Fiscal Requirements ...........................................................................................................................34 3.3. License Allocations .............................................................................................................................................35 3.3.1. Mining Sector ...............................................................................................................................................35 Table 3.4 .........................................................................................................................................................................36 Table 3.5:........................................................................................................................................................................37 Table 3.6:Licences in 2017 and 2018 ..............................................................................................................................41 3.3.2. Oil & Gas Sector ...........................................................................................................................................46 3.4. Register of Licenses ............................................................................................................................................54 3.5. Contract Disclosure ............................................................................................................................................55 Table 3.7:........................................................................................................................................................................57 3.6. Beneficial Ownership ......................................................................................................................................59 3.7 State Participation ...............................................................................................................................................60 3.8 Government loan .................................................................................................................................................60 3.9. Exploration, Production and Exports ....................................................................................................................61 Table 3,8 .........................................................................................................................................................................64 Figure 1. .........................................................................................................................................................................66 4. Revenue Collection ....................................................................................................................................................69 4.1. Revenue Flow .....................................................................................................................................................69 2 | P a g e 4.1.1. Mining ..........................................................................................................................................................69 Table 4.1 .........................................................................................................................................................................72 4.1.2. Oil/Gas ..........................................................................................................................................................74 Table 4.2:........................................................................................................................................................................74 Scoping Study .............................................................................................................................................................75 Table 4.3: Threshold Analysis and companies selection for 2017.....................................................................................77 Table 4.4: Threshold Analysis and companies selection for 2018.....................................................................................77 Scoping Outcomes ......................................................................................................................................................78 The MSG’s final relevant scoping decisions have been summarized in the following sections. ........................................78 Table 4.5: Scoping Parameters for 2017/18 SLEITI Report .............................................................................................78 4.3.1 Materiality statement and Reporting Entities .................................................................................................78 4.3. Reporting Government Entities.............................................................................................................................81 4.4. Payments for Reconciliation and Project -level Reporting .....................................................................................81 4.5. Discrepancy .........................................................................................................................................................82 4.6 Data Quality ..............................................................................................................................................................82 4.7 Assurances provided by reporting entities to the IA ...............................................................................................82 5.0 Scope of Work .....................................................................................................................................................82 5.1Discrepancy ...........................................................................................................................................................83 5.2 Results of Reconciliation ......................................................................................................................................86 Table 5.1 Unilateral declaration – 2017/18 ......................................................................................................................87 5.1 ...........................................................................................................................................................................87