Once defined by war and blood diamonds, Sierra Leone is now looking to turn its rich but underdeveloped mineral base – iron ore, gold, rutile and bauxite – into a driver of economic recovery and long-term investments.

The small West African country on the Atlantic coast, bordered by Guinea and Liberia, hosts some of the region’s largest known reserves, including over 13.7bn tonnes of iron ore at Tonkolili, an estimated 5.8mn ounces of gold at Baomahun and the world’s most significant natural rutile deposits in the coastal south.

Sierra Leone lies within the West African Craton, a stable block of ancient Precambrian rocks. Its geology is dominated by Archean and Paleoproterozoic formations  –  gneisses, schists, greenstone belts and granitic intrusions  –  which support extensive mineralisation across iron ore, gold and diamonds.

Diamonds are mostly recovered from alluvial gravels formed by the erosion of kimberlite pipes, with production concentrated in Kono, Kenema and Bo districts. While kimberlite sources exist at Koidu and Tongo, most output still comes from artisanal mining. The country is known for high-purity type IIa stones.

Gold is hosted in quartz veins and greenstone belts linked to regional shear zones, particularly in Bo, Tonkolili and Bombali. These Birimian-style deposits, typical of West Africa, are drawing renewed interest after years of under-investment.

Iron ore is found in banded formations, with Tonkolili’s magnetite deposit among the largest in Africa. Marampa, near Lunsar, produces high-grade hematite. These formations are geologically consistent with other major iron belts in the region.

Natural rutile occurs in ancient coastal dunes and floodplains in Moyamba and Bonthe. The deposits also contain ilmenite, zircon and monazite. Sierra Leone's rutile is exceptionally high-grade. Bauxite is present in lateritic zones over granitic and iron-rich rocks in the south. Though smaller than Guinea's, the ore deposit is low in silica and suitable for alumina refining, although it is currently exported unprocessed.

Other minerals include coltan, chromite and rare earths found in pegmatites and ultramafic rocks, particularly in the north and east. These remain largely undeveloped but are beginning to attract early-stage exploration.

A nationwide airborne geophysical survey in 2019 identified multiple new targets, including lithium-bearing pegmatites, base metals and industrial minerals. With much of the country still under-explored, Sierra Leone is increasingly seen as a promising frontier for mineral exploration in West Africa. Building on this geological endowment, production is focused on diamonds, iron ore, rutile, bauxite and, increasingly, gold.

Diamond production has recently ranged from 500,000 to 800,000 carats annually. In 2022, output reached 689,000 carats worth $142.9mn, falling to around 525,000 in 2023. Notable finds include the 968.9-carat Star of Sierra Leone and a 709-carat alluvial diamond discovered in 2017. Kono District and Tongo Field are key mining areas.

China's Kingho Group now operates the Tonkolili iron ore mine, which is being upgraded with downstream processing capacity. Meanwhile, Marampa, near Lunsar, produces high-grade hematite and is run by the US/UK-based Gerald Group, which resumed operations after a settlement with the government. Both mines are active following earlier disruptions. Iron ore output was around 4mn tonnes in 2022 and is expected to increase.

Rutile is extracted from coastal deposits in Moyamba and Bonthe. The country is the world’s largest producer of natural rutile, with 2022 output at 136,000 tonnes. A new expansion at Sembehun holds reserves of 173.7mn tonnes at 1.46% rutile  –  enough for an estimated 14 years of production  –  while Area 1 has around 40.7mn tonnes at 1.34%. Sierra Rutile, an Australian-listed company, employs over 2,000 people and is one of the largest private employers.

Sierra Mineral Holdings 1, a subsidiary of the Romanian group Vimetco, mines bauxite in Moyamba District. Output was 910,000 tonnes in 2022, down from a 2018 peak of nearly 1.94mn. The ore is gibbsite and low in silica.
 
Gold mining has long been artisanal, but the Baomahun Gold Project is set to become the first commercial-scale operation. Located in Bo and Tonkolili, Baomahun contains a Joint Ore Reserves Committee Code-compliant resource of 5.8mn ounces and is expected to begin producing in 2025, targeting 185,000 ounces annually. The project is developed by Canada's FG Gold and backed by Canadian investors, marking a turning point in formal gold production. The country's official gold output was only 60kg in 2022, pointing to widespread underreporting or smuggling from artisanal sites.

Other minerals include coltan, chromite, platinum and rare earth elements, though their output is insignificant. Offshore petroleum exploration is at an early stage, but there have been no drilling campaigns since 2013.

Major companies active in the sector include Sierra Rutile (Australian), Kingho Mining/Leone Rock Metals (Chinese), Gerald Group (US/UK), Koidu/Octea Mining (Guernsey-registered, formerly linked to BSG Resources), Newfield Resources (Australian), SMHL/Vimetco (Romanian) and FG Gold (Canadian).

Foreign investment has increased recently, with interest from China, the UK, Australia and the US. Following the lifting of the 2023 moratorium on exploration licences, new bidding rounds are underway, particularly for critical minerals.

Sierra Leone's economy is projected to grow modestly, with real GDP expected to rise by 4.5% in 2025 and 4.7% in 2026. According to the latest IMF estimates, GDP is forecast to increase from $7.8bn to $7.95bn in nominal terms.

Despite this growth, the country remains among the poorest in the region. GDP per capita is projected to fall slightly from $883 in 2025 to $882 in 2026, reflecting population growth from 8.83mn to just over 9mn.

Inflation is forecast to ease from an average of 18% in 2025 to around 13% in 2026. Gross government debt is expected to remain stable at just under 43% of GDP.

Sierra Leone covers around 73,000 sq km of tropical terrain, ranging from coastal swamps to savannah and rainforest. Its capital and commercial centre is Freetown, a port city with around 1.35mn residents as of the 2024 census.

Mining drives the export economy but contributes little to recorded GDP and formal employment. In 2021 it accounted for just 0.6% of GDP, reflecting limited integration with the broader economy and downtime at key sites. By 2024, with iron ore production resuming, the sector's share had risen to around 7%. Minerals consistently dominate exports, making up 61% and 67% of total export value in recent years – down from a 2016 peak of 91% during the last iron ore boom. Mining also generates about 11% of government revenue through royalties, fees and corporate tax.

Artisanal mining remains a vital, though largely informal, part of the sector, involving over 100,000 people. Around 2.6% of the workforce depend on artisanal diamond and gold mining, with many organised into cooperatives under a licensing framework.

However, large volumes still move outside official channels. Formal mining jobs are limited, employing just 1-3% of the workforce. By contrast, agriculture contributes around half of GDP and employs over 60% of the population, highlighting the economy’s lack of diversification.

Still, national growth is closely linked to mining. During the 2012-2013 iron ore boom, Sierra Leone posted GDP growth above 15% – among the fastest in the world. When prices collapsed and Ebola hit in 2015, the economy contracted sharply. The episode exposed the risks of commodity dependence. The government now aims to use mining for long-term development, emphasising transparency and reinvestment.

Despite vast resource potential, Sierra Leone captures little downstream value. Most minerals are exported in raw or semi-processed form, and local refining capacity remains minimal.

Nearly all diamonds are exported rough. The 2007 Diamond Cutting Act led to only a few small ventures, and no cutting industry has emerged due to limited skills and infrastructure. President Bio has called for domestic polishing and jewellery manufacturing, but exports still flow to Antwerp and Dubai. 

There is no gold refinery. Artisanal output is sold as dust or basic doré bars, and much of it is smuggled to neighbouring countries. Baomahun will produce doré on site, but final refining will occur abroad. A local plant could become viable if volumes increase.

All bauxite is exported in raw form. There is no alumina refinery, and a limited power supply makes one unlikely in the near term. Iron ore is shipped unprocessed or as concentrate. Tonkolili supplies ore with 57% to 58% iron content to China, while Marampa produces around 65% iron "Marampa Blue".

Rutile is a relatively bright spot. Sierra Rutile uses gravity-based methods to produce a concentrate containing over 95% titanium dioxide. Though not fully refined, the product is ready for market. Ilmenite and zircon by-products are also exported as concentrates. 

The government has introduced tax breaks, duty exemptions and local content rules to support domestic processing. President Bio has made value addition a strategic goal, calling it essential for sustainable development. By mid-2025, early steps include diamond polishing workshops, a gold refinery feasibility study and Kingho’s proposed pellet plant – though whether these can scale remains uncertain.

Sierra Leone, a constitutional republic with a directly elected president and a single-chamber parliament, remains politically fragile despite two decades of post-war democratic progress. President Julius Maada Bio, re-elected in 2023, leads the Sierra Leone People’s Party (SLPP), which holds a parliamentary majority. The election was marred by opposition claims of fraud, with the All People’s Congress (APC) initially boycotting Parliament. A political deal later in the year saw the APC return to the legislature, easing tensions but exposing deep partisan divides.

The country’s democratic trajectory is still shaped by the legacy of its 1991-2002 civil war, which left tens of thousands dead. The conflict was driven in part by the trade in blood diamonds and supported by Liberian warlord Charles Taylor, who armed rebel forces in exchange for illicit gems.

He was later tried by the UN-backed Special Court for Sierra Leone and sentenced in The Hague to 50 years in prison for war crimes and crimes against humanity. While peace has held, political volatility and institutional weaknesses persist.

In November 2023, the government said it had foiled a coup attempt following armed attacks on military and police facilities in Freetown. The incident underlined ongoing security risks and the limits of the country’s stability.

In early 2025, President Bio's administration was hit by a governance scandal after the dismissal of the immigration chief, Alusine Kanneh, over links to Dutch fugitive Johannes Leijdekkers. The case attracted attention due to Leijdekkers' reported ties to political elites.

Bio has maintained an outward-facing diplomatic posture despite such setbacks and advocates for structural reforms. Domestically, the administration has pressed ahead with sectoral reforms, including mining, aiming to attract investment while increasing national returns from resource extraction.

Sierra Leone has recently overhauled its mining legislation to modernise the sector and ensure greater public benefit. The cornerstone is the Mines and Minerals Development Act 2022, which replaced the 2009 law and introduced stricter rules for exploration, operations and mineral trading.

The law requires free, prior and informed consent (FPIC) from local communities before mining projects begin or expand. It mandates environmental impact assessments (EIAs) with an environmental licence – renewable annually – issued by the Environment Protection Agency. Community development agreements (CDAs) are compulsory for large-scale mines above a production threshold, committing companies to fund local development projects. Social and environmental safeguards are built into all phases of mining activity.

Five types of mineral rights are available: reconnaissance permits, exploration licences, artisanal mining licences, small-scale mining licences and large-scale mining leases. Artisanal mining is restricted to Sierra Leonean citizens who use hand tools on plots of up to one acre. Larger, mechanised operations are typically foreign-run under 25-year leases, often including state equity or royalty provisions.

The fiscal regime is defined by the Extractive Industries Revenue Act 2018. As of April 2025, royalty rates are set at around 3-5% for diamonds and other precious minerals, 5% for gold, 3% for bauxite, 3.5% for iron ore and 0.5% for rutile exports. Incentives include duty waivers on equipment and stabilisation clauses to protect investors from sudden tax changes. All new large-scale mining agreements must follow standardised terms and be ratified by Parliament.

The Ministry of Mines and Mineral Resources sets policy, while the National Minerals Agency (NMA), established in 2012, handles regulation, licensing and compliance. The NMA maintains an online mining cadastre and a public repository of licences and company payments. Sierra Leone has been a member of the Extractive Industries Transparency Initiative since 2008 and regularly publishes EITI reports and mining contracts. The country also adheres to the Kimberley Process, certifying its diamond exports as conflict-free.

The Environment Protection Agency monitors environmental compliance and can issue stop orders or fines for breaches. Local content rules favour Sierra Leonean goods and labour when feasible. In 2023 Sierra Leone established a state-owned mining company – the Sierra Leone Mines and Minerals Development and Management Corporation – tasked with participating in strategic projects through joint ventures or direct operations. While still in its early stages, the move reflects a modest tilt toward resource nationalism, aligning with broader African trends to retain more value from extractives.

As of April 2025, Sierra Leone’s updated mining regime is broadly aligned with international standards on transparency, community rights and environmental protection.

Governance, however, remains a significant constraint. Regulatory agencies operate with limited resources across vast and often remote mining areas, making enforcement uneven. Corruption, licence squatting and political interference have long affected the sector. In 2019, the government cancelled several inactive or questionable licences – including at Tonkolili and Marampa – prompting arbitration and investor concern. 

Gerald Group, for instance, filed a case at the International Centre for Settlement of Investment Disputes (ICSID) before reaching a settlement in 2021 that allowed it to resume operations at Marampa under revised terms. Regulatory uncertainty and slow permitting continue to deter investment. While compliance monitoring – from production tracking to royalty collection – has improved, it remains under-resourced.

Despite the sector’s potential, Sierra Leone faces persistent structural barriers that constrain the full benefits of mining.

Infrastructure is a major obstacle. The country has just one ageing railway – from the iron ore belt to Pepel port – and few paved roads beyond Freetown. Many interior mining areas lack reliable access to electricity and transport links, forcing companies to build their own infrastructure. African Minerals (now Kingho) rebuilt the rail and port for Tonkolili, while smaller firms often clear bush roads and establish fly camps. The power supply is another bottleneck: the national grid is limited and centred on Freetown, leaving most mines reliant on diesel generators. 

Community relations are often strained. Disputes over land, compensation and environmental impacts have led to unrest. At the Koidu diamond mine, protests in 2007 and 2012 over blasting and resettlement ended in deadly clashes. In rutile areas, farmers have reported tailings dumped on farmland and the siltation of rivers. New legal provisions – including FPIC and CDAs – are not consistently enforced. Customary land tenure means companies must negotiate with chiefs and family landowners, often a tension source. High youth unemployment further fuels resentment when locals see jobs going to outsiders.

Environmental damage is widespread. Artisanal mining has stripped riverbanks and left stagnant pits. Deforestation and erosion are common, and dredging for rutile has disrupted ecosystems. Water pollution, sedimentation and mercury use in gold panning remain significant concerns. Although environmental laws are in place, enforcement is patchy. Some firms, such as Sierra Rutile, run rehabilitation programmes, but legacy damage persists. The rainy season adds further risk, with flooding capable of breaching mine pits and waste containment systems. A deadly landslide near Freetown in 2017 underscored the country's environmental fragility.

Illicit mining and smuggling also undercut state revenues. Foreign artisanal miners regularly cross from Guinea and Liberia, and high-value stones such as diamonds and gold are trafficked through porous borders. Despite the Kimberley Process and enforcement efforts, smuggling remains pervasive. Weak oversight, poverty and the high value of unregistered stones continue to drive off-book trade.

Capacity and financing constraints weigh heavily on the sector. The supply of qualified geologists, engineers and inspectors is limited, and government institutions still depend on donor-funded technical support. High capital requirements and investor caution – driven by regulatory risk and political uncertainty – make financing difficult. The collapse of African Minerals in 2014, then the country's flagship iron ore producer, and delays in funding Sierra Rutile's Sembehun expansion highlight the difficulty of sustaining significant investments in the high-risk environment.

Sierra Leone's minerals sector stands at a defining moment. The country holds vast geological potential – from high-value diamonds to abundant iron ore and rare titanium deposits – and is making a strong effort to turn this long-underexploited mineral wealth into a foundation for growth. After years of instability and mismanagement, new legal frameworks, rising investor interest and firm commodity prices – particularly for rutile – create fresh momentum. Several new mines are due to come online by 2025. The challenge is to ensure that this renewed activity translates into long-term gains for the broader economy and the communities that host the country's mineral riches.