FG Gold is on a mission to develop Sierra Leone’s premier gold mine, delivering sustainable growth for all stakeholders, employees, and communities. Nicola Asgill, Head of Corporate Development, Sustainability, and Investor Relations, tells us more.
STRIKING GOLD IN SIERRA LEONE
As it finds itself in a period of renaissance, Sierra Leone’s mining sector is going from strength to strength.
FG Gold’s Baomahun Gold Project (Baomahun) is a prime example of this resurgence. Set to become Sierra Leone’s premier large-scale commercial gold mine, Baomahun symbolises a series of unprecedented achievements for the country.
FG Gold has been a hallmark of collaboration between a collective of first-rate African institutions – Africa Finance Corporation (AFC), African Export-Import Bank (Afreximbank), and Fundo Soberano de Angola (FSDEA).
Representing AFC’s first mining investment in Sierra Leone and FSDEA’s first investment in the country, FG Gold signifies a vote of confidence in Sierra Leone’s mining and economic potential.
In addition, FG Gold has partnered with global leading firms such as Lycopodium, Knight Piésold, and CrossBoundary Energy to ensure Baomahun is developed into a world-class asset.
Baomahun is the inaugural project in Sierra Leone for top-ranked engineering firm Lycopodium as FG Gold’s engineering, procurement, and construction management (EPCM) contractor.
As the company approaches first gold pour, it is making great and steady strides in construction and development.
Process plant development is progressing steadily – the on-site quarry, concrete batching plant, and aggregate crushing plant have been instrumental in the concrete works for the carbon-in-leach (CIL) ring beams and ongoing civil works for the ball and semi-autogenous grinding (SAG) mills area, and ground works on the thickener area.
The construction of the new modern camp, complete with facilities such as offices, a medical bay, gym, laundry, and water treatment plant, is nearing completion and works on an administration block are also far advanced.
In addition, the Tailings Storage Facility site has been cleared, with work progressing on the access road and decant return trench, whilst areas for a solar farm, power plant, and emulsion plant have been cleared ahead of construction and development activities.
One of the largest gold mines currently under development on the African continent, Baomahun will be a top-tier asset and the leading gold mine in Sierra Leone upon completion.
“With current trends in the gold market, Baomahun will put Sierra Leone on the map as a gold producer and strengthen the country’s position economically,” opens Nicola Asgill, Head of Corporate Development, Sustainability, and Investor Relations for FG Gold.
Indeed, this project is a testament to what can be achieved through strong partnerships and collaboration within the mining ecosystem, particularly with the Government of Sierra Leone (GoSL).
AN EVOLVING INDUSTRY
Beyond FG Gold, the nation has seen a resurgence in other mining commodities such as iron ore, with Marampa Mines Limited and Leone Rock Metal Group continuing to thrive.
“Another key highlight is the re-emergence of Sierra Rutile as a Sierra Leonean-owned company continuing its 50+ year legacy,” Asgill adds.
These all represent a much-welcomed boom in the country’s mining sector following a tumultuous period consisting of commodity price crashes, outbreak of Ebola virus disease, and the COVID-19 pandemic.
In addition, the government’s continued focus on creating an enabling regulatory framework is intended to drive further investment in the sector.
GoSL’s completion of the Nationwide Airborne Geophysical Survey (NAGS) produced crucial technical information, creating a high-resolution map of Sierra Leone’s geology and mineral resources using magnetic and radiometric data.
Recently, the Bank of Sierra Leone has introduced its GO-FOR-GOLD programme and other gold purchasing initiatives as part of a broader effort to boost the national economy whilst formalising and improving the traceability of the gold trade.
“It is hoped that initiatives such as these will continue to drive industry growth and enable us to capitalise on the abundance of minerals we are blessed to possess in Sierra Leone, uplifting our people and communities,” she surmises.
MAKING HISTORY
With a Joint Ore Reserves Committee (JORC)-compliant resource of almost six million ounces (oz) at a grade of approximately two grams per tonne (g/t), Baomahun is making history for Sierra Leone.
Once it reaches full operation, the project is anticipated to produce around 150,000 oz of gold annually for FG Gold, with the potential to grow production up to 200,000 oz.
“This will make it a sizeable African gold operation and a major contributor to Sierra Leone’s economic growth,” Asgill explains.
Baomahun is set to contribute roughly 10 percent to the country’s GDP. Aside from this economic benefit, job creation will be significant through both direct and indirect employment and additional economic advantages will accrue via multiplier effects throughout FG Gold’s supply chain and contractor ecosystem.
“We are excited about the project’s social impact, particularly its ability to deliver tangible social contributions as we are setting aside a percentage of net revenues to benefit our host communities” she excites.
Indeed, FG Gold has committed to contributing one percent of revenues to its Community Development Fund, which enables it to actively invest in community-led initiatives in infrastructure, education, healthcare, and more.
With mining projects of this size previously only required to contribute 0.5 percent of revenues, FG Gold was the first company to commit one percent before it became a regulatory requirement, setting the precedent and establishing its position as a pioneer of the industry.
“We were the first company to make this kind of commitment – even before it became a regulatory requirement,” Asgill prides.
Indeed, FG Gold’s project-affected communities are considered first for employment and supply chain opportunities afforded by Baomahun, with over 70 percent of its workforce comprising former or potential artisanal miners.
The company is also focused on skills development programmes such as driver training and basic maintenance apprenticeship schemes aimed at upskilling local residents, with many graduates from such training programmes subsequently hired by FG Gold.
“In particular, our training programmes provide artisanal miners opportunities for sustained employment and livelihood enhancement,” she highlights.
Skills development and progressing the livelihoods of local residents is a continuous and ongoing process for FG Gold.
“We consistently embed residents from our project-affected communities into different facets of our operations and will continue to do so,” Asgill outlines.
The company also purchases locally sourced foods for its staff, employs youth and artisanal miners, provides training for the area’s farmers, and earmarks certain contracts for local community suppliers.
“The transformation of our local communities is FG Gold’s most important mission,” she asserts.
LOCAL FIRST
FG Gold’s dedication to local communities is further demonstrated by its recent execution of a Local Content Implementation Agreement with the Sierra Leone Local Content Agency (SLLCA).
“The Local Content Implementation Agreement pledges FG Gold to implementing its Local Content Plan. The agreement is a demonstration of our ongoing commitment to a local-first approach,” Asgill tells us.
Therefore, the company’s top priority for sourcing employees, suppliers, and contractors is always project-affected communities, followed by Sierra Leoneans from other regions.
Existing Sierra Leonean staff are always prioritised when it comes to promotions and career advancement opportunities.
As a result, FG Gold is proud to have a workforce that is over 90 percent Sierra Leonean, about 55 percent of which hail from project-affected communities.
For highly technical roles where local talent is not readily available, the company has implemented training programmes and schemes for local knowledge transfer.
As FG Gold progresses the development of Baomahun, it hopes to also implement longer-term plans such as partnerships with universities for internship and graduate training programmes and technology transfer initiatives.
“We believe the benefits and outcomes of Baomahun should be maximised for Sierra Leoneans and we continue to strive towards the goal of having a 100 percent Sierra Leonean workforce,” she emphasises.
RIGOROUS SAFETY STANDARDS
In terms of safety, FG Gold is proud to have continued its streak of zero lost time injury (LTI) and fatal incidents, with over five million LTI-free hours logged to date.
“This streak is no small feat and is one of the longest ongoing streaks on an African mining project,” Asgill adds.
The safety of not only staff but surrounding communities is of supreme importance to the company, whose mission to achieve zero harm underpins its safety approach at every level of its operations.
“We have achieved this major milestone largely by making safety a core part of our culture. It is the first thing discussed on site each morning and our Monday site-wide toolbox talks delve into details on specific safety issues,” she relays.
In addition, employees hold each other accountable for adhering to safety protocols and incorporating safe practices in their daily activities.
“We encourage behaviours and implement processes that promote the safety and health of all personnel and the communities associated with our operations,” Asgill assures.
Furthermore, all on-site operations must pass safety protocols – any activity that doesn’t pass is cancelled or postponed until it adheres to these regulations.
“It is quite stringent, but this is necessary to maintain a safe workplace,” Asgill insists.
Emergency preparedness is also paramount to FG Gold given the high-risk nature of many of its activities, meaning it has an active emergency response team in place who practice regular drills to ensure the safety of all.
In addition to tangible, site-based protocols, FG Gold’s commitment to safety goes much deeper to the extent that it is intrinsically intertwined within its culture.
Regular communication and reporting are in place such as monthly safety reviews and performance tracking, weekly meetings on unsafe acts and conditions, and digital safety dashboards to monitor key performance indicators (KPIs).
On top of this, the company is in constant pursuit of improvement through monthly safety audits and inspections and annual performance reviews.
“We also have a well-equipped clinic and ambulance on-site,” she continues.
In this way, the company demonstrates its commitment to creating a safe, comfortable, and well-equipped environment for its people.
ENABLING CLEAN ENERGY
As a company that believes integrating sustainability into mining is no longer a ‘nice to have’ but a necessity, FG Gold is carving a path towards a clean energy future.
“Clean energy is a key pillar of our sustainable mining ethos,” Asgill confirms.
As such, the company has partnered with energy developer CrossBoundary Energy for a hybrid power solution consisting of 23.8 megawatts (MW) of solar energy, 21 MW of heavy fuel oil (HFO), and a battery energy storage system with a capacity of 13.8 MW.
The solar solution will be one of the largest in Sierra Leone and is expected to save over 23,000 tonnes of carbon dioxide per year.
As the mine expands, FG Gold plans to move towards other green solutions such as connecting to the Côte d’Ivoire-Liberia-Sierra Leone-Guinea (CLSG) electricity transmission line and potentially looking into hydropower solutions.
Sustainability was a key project discussed at Sierra Leone Mining Week and Exhibition, which took place in April this year, where Asgill hosted a panel discussing the advancement of clean energy within the sector.
She reflected upon how two crucial aspects – financing and offtake agreements – are vital to advancing clean energy, with mining companies often the solution for both.
“We can leverage our balance sheets, operations, and projects for capital to develop clean energy projects as we have done at FG Gold,” she explains.
Asgill went on to examine how mining projects as high-volume offtakers can de-risk energy projects, with mines potentially serving as central nodes through which to expand the grid and drive clean energy uptake.
Elsewhere, FG Gold maintains stringent environmental regulations and adheres to international standards when it comes to project-related and mining activities.
“We ensure we have the appropriate mitigation measures in place, whilst we seek to preserve biodiversity within our project footprint and limit our harm to the environment and any downstream effects on local communities,” Asgill prides.
AN EVERLASTING LEGACY
With corporate social responsibility (CSR) at the heart of FG Gold’s operations, the company has taken steps to leave a legacy that is transformative for its host communities.
“It is important to remember that we are operating on a lease in the sense that communities have leased their ancestral land to us for pivotal projects such as Baomahun,” Asgill urges.
Therefore, FG Gold recognises its duty to return this land to them significantly transformed for the better.
To deliver on this paramount responsibility, the company has developed a rounded approach to ensure it leaves a positive legacy.
The company places great emphasis on environmental stewardship as it seeks to minimise local impact, protect native biodiversity, and reduce climate-related risks.
With the Baomahun site home to unique local biodiversity, FG Gold’s rigorous Environmental, Social, and Health Impact Assessment (ESHIA) and environmental management systems ensure careful oversight and protection of local ecosystems and habitats at an international standard.
FG Gold’s robust environmental management approach has received endorsement from the regulatory authorities, with all environmental licences and permits for the project achieved.
Alongside environmental priorities, it is the project-affected communities who are at the centre.
“Firstly, we have ensured that Baomahun does not encroach on the social norms of our host communities,” she highlights.
With policies that go beyond its Community Development Fund, the company’s social initiatives have been designed to ensure that any benefits afforded to local populations are not just immediate but generational.
In this way, the hallmark of FG Gold’s entire approach is collaboration with host communities.
“We view our communities as partners in the success of Baomahun,” she adds.
Beyond just the physical transformation of local areas, the company understands that Baomahun’s legacy will live on through education, healthcare, gender equality, and economic empowerment.
“Even when FG Gold leaves Baomahun, our communities will continue to thrive and bustle. We are achieving this by placing sustainable mining at the heart of all that we do,” Asgill proudly asserts.
A BRIGHT FUTURE
As FG Gold mines its current reserves, it will continue its exploration activities with a view to facilitate additional oz to its resource and extend the mine’s current 12.5-year lifespan.
“Our current mine footprint sits in a small portion of our 125 square kilometre concession, and we have only explored 1 kilometre (km) of our 16.5 km strike length,” Asgill details.
In the medium to long-term, the company also believes that beneficiation is a crucial step not just for FG Gold but for the entire Sierra Leonean mining sector.
“Value-addition could have an exponential effect both economically and socially,” she excites.
As such, FG Gold plans to pursue opportunities for value addition prior to export.
Reflecting on the success of the company over the years, Asgill points out how FG Gold’s ability to innovate has often set it apart.
Baomahun exemplifies this innovative prowess as the first mining project of its kind in Sierra Leone to utilise a stream financing instrument.
As the first project-financed mine in Sierra Leone, FG Gold’s Baomahun funding package incorporates several types of instruments all carefully crafted to mitigate different project risks such as off-balance sheet energy arrangements and stream and equipment financing, alongside insurance-backed facilities.
“We opted out of the traditional junior mining pathway and instead focused on project finance, which maximises value in the long run.”
The company also completed several community infrastructure investments including construction of the St Josephine Bakhita Primary School and upgrade of the Baomahun Health Centre, before completing its definitive feasibility studies – something most mining businesses do not typically do.
The company anticipates great things for the future as it continues to steadily develop Baomahun and remains on track for the immanent first gold pour.
“Baomahun is one of the largest mining and infrastructure investments in Sierra Leone. We have set a strong financing precedent that the country can leverage for other investment and financing opportunities,” she confidently concludes.
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