In a recent turn of events, Marampa Mines Limited (MML) finds itself embroiled in a dispute with the Sierra Leone Maritime Administration (SLMA).

Marampa Mines are fined to pay up some freight debts.

SLMA says it has told the miner to pay up its freight taxes but never has done so.

Despite repeated clarifications from MML citing their Mining License Agreement (MLA) exemptions, SLMA has persistently pursued the mining company for payment, prompting MML to seek intervention from government authorities to uphold the terms of their agreement.

The conflict began in April 2024 when Sierra Leone Maritime Administration (SLMA) sent Marampa Mines Limited (MML) a debit note accompanied by a series of invoices claiming that the mining company owed them freight levy as stipulated in their regulations.

In response, MML promptly pointed out to SLMA the specific exemption clause outlined in their signed and ratified Mining Lease Agreement (MLA) with the Government of Sierra Leone (GOSL), which clearly stated that MML was waived from paying any freight levy unless a service was explicitly requested by MMl and rendered  by SLMA .  Since the start of its opertaions in 2021, MML has not requested nor has SLMA rendered any service to MML.

Despite MML’s efforts to assert their exemption rights under the MLA, SLMA persisted in sending debit notes and invoices in July, August, and September, demanding payment for the alleged freight levy. MML reiterated their stance, emphasizing that they were a law-abiding company and did not owe SLMA any money based on the terms of their agreement with the GOSL.

As the dispute escalated, SLMA took drastic measures by reaching out to the Sierra Leone Ports Authority (SLPA) in September 2024, requesting the suspension of MML’s vessel operations until the alleged debt was settled.

In response, MML engaged with the relevant government authorities, including the Minister in charge and the National Revenue Authority (NRA), seeking their intervention to prevent any unwarranted disruption to their operations.

On October 29, 2024, MML received a Final Demand notice from the NRA, demanding payment of $5,780,838 for freight levy.

Once again, MML submitted a detailed response referring to the clauses in their MLA that clearly exempted them from such charges, re-affirming their position that they did not owe any freight levy to SLMA or any other entity.

The crux of MML’s defense lies in Clause 6.16 of their MLA, which explicitly states the exemptions from port, harbor dues, fees, and other charges unless specific services are rendered and requested by MML. Furthermore, Clause 4.1 of the MLA underscores the commitment to comply with applicable laws, with provisions in the agreement taking precedence over inconsistent legislation.

MML’s unwavering stance against the unjust freight levy demands is grounded in the need for legal certainty and protection against arbitrary charges that could jeopardize their investments.

In light of the ongoing dispute, MML faces the threat of negative publicity and potential reputational harm due to the baseless claims of debt levied against them. The company remains steadfast in upholding the terms of their agreement and seeking a fair resolution to the conflict with SLMA.

As the situation unfolds, it becomes evident that Marampa Mines Limited’s commitment to operating in Sierra Leone while abiding by legal agreements is unwavering. The company’s dedication to fulfilling its financial obligations and its corporate social responsibility remains paramount amidst challenges posed by unfounded demands and regulatory disputes.