MML owes government US$ 5.7M, NRA demands payment
At the end of October 2024, the National Revenue Authority (NRA) issued a final demand notice to Marampa Mines Limited for the payment of US$5.7 Million as freight levies for the shipments of iron ore from Sierra Leone.
In a letter dated 27th September, 2024 and addressed to the Executive Director of the Sierra Leone Maritime Administration, MML clarified that, according to Clause 6.16 of their Mining Lease Agreement, they were/are exempt from “all port, harbour, loading and unloading dues or fees that may be levied by either SLPA, SLMA, or any agencies, organisations or legal entity, whether private or public in relation to their operations”.
The letter continues “In view of the foregoing, all the invoices issued by SLMA to MML for the payment of freight levies and attached to the referenced letters are accordingly and respectfully rejected”.
In another letter dated 7th October, 2024 and addressed to the Executive Director of SLMA, MML wrote, “We reiterate our position as expounded in our referenced letter dated 27th September 2024 (attached hereto as Annexure “A”) in that the provisions of Sierra Leone Maritime Administration Act, 2000 do not apply to MML as such provisions conflict with and contradict and are inconsistent with the provisions of Clause 4.1 and 6.16 of the MLA.
Furthermore, Clause 6.16 of the MLA expressly exempts MML from paying “all port, harbour, loading or unloading dues or fees and stevedoring charges that may be levied either by the SLPA, SLMA, or any agency, organisation or legal entity”, which includes freight levy from SLMA. MML denies owing the SLMA and freight levy debt in the stated sum of US$6,854,595.41.
The letter continued, “We hereby demand your office to forthwith cease and desist with obstructing our on-going vessel operations and to retract the enforcement action letter issued to the SLPHA as a matter of urgency and without any further delay. The SLMA is directed to engage the line Ministry within GOSL and comply with the dispute resolution process contained in Clause 12.8 of the MLA”.
Meanwhile, SLMA have made several attempts to reach an amicable settlement with MML. But MML have refused to sit down and negotiate with SLMA.
MML’s insistence on Clause 6.16 of their Mining Lease Agreement as an exemption from payment of freight levies has been described by a retired Supreme Court Judge as “untenable”. He argued that, an Act of Parliament supersedes any Agreement ratified by Parliament. “Therefore”, he said, “the SLMA Act, I dare say, is a law that supersedes the Mining Lease Agreement signed between the Government of Sierra Leone and Marampa Mines Limited”.
A civil society activist on extractives described MML’s decision to refuse to honour a demand notice for the payment of US$5.7M as freight levies to NRA as “arrogant and a show of defiance”.
The Permanent Secretary in the Ministry of Mines and Mineral Resources has requested his counterpart in the Ministry of Transport and Civil Aviation to intervene in the matter “To prevent the negative implications in the relationship between the Government and companies operating in the Mines and Minerals Sector”.
Many people have called for a review of the 25-year MLA signed between the Government of Sierra Leone and Marampa Mines Limited in December 2021.
Investigations continue.
