Sierra Leone has reached a historic milestone in its mining industry after securing US$330 million in senior-debt financing to launch the country’s first large-scale commercial gold mine.
The financing, provided by Africa Finance Corporation (AFC) and Afreximbank, and complemented by capital mobilised through global commodity trader Trafigura Group, unlocks full development of the Baomahun Gold Project, located about 200 kilometres east of Freetown across Bo and Tonkolili Districts.
The Baomahun site spans approximately 124.27 square kilometres and holds over 60 tonnes of gold, estimated to be worth more than US$4 billion.
Once operational, the mine is expected to produce on average five tonnes of gold per year over a projected 12.5-year mine life, translating to annual revenues in the ballpark of US$300 million.
According to project developers, FG Gold Limited, the financing package comprises a senior debt facility totalling US$330 million, augmented by prior investments from AFC’s streaming and mezzanine commitments. Combined, support from African development finance institutions for Baomahun reaches roughly US$430 million.
Afreximbank’s direct contribution is reported at US$75 million.
The Baomahun Gold Project is anticipated to create approximately 900 direct and indirect jobs, with 90 percent of the workforce sourced locally from Sierra Leone.
During operations, the mine could contribute around 10 percent of the country’s GDP, and stimulate significant growth in local supply-chain sectors.
