Bank of Sierra Leone Sign Agreement With FG Gold to Purchase Gold From Baomahun Mine
FG Gold Limited and the Bank of Sierra Leone have signed a Memorandum of Understanding for the central bank to purchase gold from the Baomahun Gold Project once commercial production begins.
The agreement establishes a framework for the Bank of Sierra Leone to buy gold produced at the large-scale mining project, with payments to be made in local currency, according to FG Gold.
The company said the arrangement represents the first offtake agreement between the central bank and a large-scale gold mine in Sierra Leone, creating a new channel for incorporating locally produced gold into the country’s reserves.
Baomahun, located in the southern part of Sierra Leone, is one of the country’s major mining investments. The National Minerals Agency lists FG Gold’s mining lease among Sierra Leone’s active mining agreements.
FG Gold said the project is valued at about $700 million and is expected to produce approximately 150,000 ounces of gold annually once operational.
The company said the planned purchases by BSL are intended to support the Bank’s Gold Purchasing Programme and strengthen the country’s gold reserves.
FG Gold Executive Chairman Oliver Tunde Andrews described the agreement as an important development for the company and Sierra Leone.
“We appreciate BSL’s confidence in us as a partner in its gold purchasing plan. This initiative will bolster Sierra Leone’s gold reserves and contribute to economic stability. We view this partnership as an opportunity to further strengthen the economy of Sierra Leone.”
The Bank of Sierra Leone has previously documented its plans to invest in gold and noted that the central bank has legal authority to buy and sell gold. Its financial statements also record the Board’s approval of a proposal for BSL investment in gold.
FG Gold said Baomahun is projected to contribute nearly 10% of Sierra Leone’s gross domestic product and create direct and indirect employment opportunities for up to 900 Sierra Leoneans. The company also said Sierra Leoneans already account for more than 90% of its workforce.
The company has undertaken several community and infrastructure initiatives ahead of production, including a tertiary education and skills-training fund, improvements to the 66-kilometer Matotoka access road, and projects aimed at strengthening trade and market connections.
FG Gold also cited the construction of St. Joseph Bakhita Primary School and the renovation of the Baomahun Health Centre among its community investments.
The company said major mine infrastructure, including a power plant, processing plant, tailings storage facility, accommodation camp and administrative buildings, is nearing completion.
The Ministry of Mines and Mineral Resources has previously described Baomahun as Sierra Leone’s first large-scale commercial gold mine, with a JORC-certified resource of 5.81 million ounces and expected annual production of 150,000 ounces over more than a decade.
The proposed gold purchasing arrangement comes as Sierra Leone seeks to expand the contribution of its mineral resources to national economic development and reserve management.