By Hassan Osman Kargbo
FG Gold Limited has signed a Memorandum of Understanding (MoU) with the Bank of Sierra Leone (BSL) to supply gold from its flagship Baomahun Gold Project once commercial production begins.
The agreement is the first of its kind between Sierra Leone’s central bank and a large scale gold mining company, marking a new development in the country’s mining and monetary sectors.
Under the agreement, the Bank of Sierra Leone will purchase gold from FG Gold in local currency. The arrangement is expected to support the country’s foreign reserves and strengthen the Bank’s Gold Purchasing Programme.
The Baomahun project, valued at about US$700 million, is one of Sierra Leone’s major mining and infrastructure investments. Once operational, the mine is projected to produce approximately 150,000 ounces of gold annually.
FG Gold Executive Chairman Oliver Tunde Andrews described the agreement as an important milestone for the company and Sierra Leone.
“We appreciate BSL’s confidence in us as a partner in its gold purchasing plan,” Andrews said. He added that the initiative would help increase Sierra Leone’s gold reserves and contribute to economic stability.
The company said the Baomahun project is expected to contribute nearly 10 percent to Sierra Leone’s Gross Domestic Product (GDP) when fully operational.
The mine is also expected to create direct and indirect employment opportunities for up to 900 Sierra Leoneans. According to FG Gold, Sierra Leoneans already account for more than 90 percent of its current workforce.
Ahead of production, the company has invested in several community development programmes and infrastructure projects in areas surrounding the mine.
These include an education fund supporting tertiary scholarships and skills training, the upgrading of the 66 kilometre Matotoka access road, and initiatives aimed at improving trade and market linkages.
FG Gold has also supported the construction of St. Joseph Bakhita Primary School and the renovation of the Baomahun Health Centre.
Meanwhile, major mine infrastructure is nearing completion. These facilities include a power plant, processing plant, tailings storage facility, accommodation camp and administration blocks.
The company said the partnership with BSL reflects its broader commitment to supporting Sierra Leone’s economic development beyond mining operations.
The agreement is also expected to strengthen the link between the country’s mineral resources and its monetary reserves, as Sierra Leone seeks to increase the value derived from its gold resources.
For FG Gold, the partnership represents another step towards the start of production at Baomahun and its wider contribution to the national economy.
