What the Arbitration Act of 2022 means for Mining Investors and the State – Hon Umaru Napoleon Koroma
Introduction: Dispute Resolution as a Foundation for Economic Stability.
Distinguished colleagues, representatives of industry, members of the diplomatic community, investors, regulators, members of the judiciary, and stakeholders in Sierra Leone’s mining and extractive sector, I am honoured to address you on a subject that sits at the intersection of law, governance, and economic development: the role of Arbitration in Dispute Resolution in Sierra Leone’s mining sector.
Sierra Leone in 1960 inherited an arbitration law — Chapter 25 of the Laws of Sierra Leone — that was modelled on the English Arbitration Act of 1950. While the English law was reformed in 1979 and then comprehensively in 1996, Sierra Leone’s Cap 25 was never updated. For sixty-two years, our arbitration regime was an artefact. The consequences were measurable: in the leading 1968 case of Kabia v. Kamara, the High Court held that the existence of an arbitration agreement did not bar the inherent jurisdiction of the court, this was the general attitude of our courts until the enactment of the Arbitration Act of 2022. The signal to international investors was clear — arbitration in Sierra Leone was a suggestion, not a commitment. When the Mining Lease Agreements of the 2010s and the SL Mining ICC arbitration arrived on our desks, we were litigating in a legal landscape from 1960, our mentality was in the 1960s. We knew that had to change.
The reform was a collaboration. The initial drafting was undertaken by the Sierra Leone Law Reform Commission. The Bill was reviewed by Herbert Smith Freehills LLP under their Fair Deal Sierra Leone pro bono programme. Through the office of the AG, the Africa Arbitration Academy convened a three-day virtual workshop in 2021 with arbitration specialists from across the continent. The final draft was reviewed at Cabinet, piloted through the House of Parliament, and unanimously enacted into law on 2 August 2022. The Act came into force on 22 September 2022.
Three key dates anchor the reform: 28 October 2020 — Sierra Leone’s accession to the New York Convention. 22 September 2022 — commencement of the Arbitration Act 2022. 2 August 2022 — when, as Deputy Minister of Justice, I had the honour of introducing the Bill to Parliament. It was passed unanimously.
The Act is now law. The harder work — operational delivery — begins here, on this stage, today.
Having had the privilege of serving as Deputy Attorney General at the time of the enactment of the Arbitration Act 2022, and now serving as Deputy Minister of Mines and Minerals, I view dispute resolution reform not merely as a legal achievement, but as a strategic pillar of national economic policy. In the extractive industries, where capital commitments are large, operational timelines are long, and regulatory interactions are complex, the credibility of a country’s dispute resolution framework is as important as the richness of its mineral deposits.
In the global investment environment, disputes are inevitable. What distinguishes stable and attractive jurisdictions from risky ones is not whether disputes arise, but how effectively, transparently, and predictably they are resolved. It is in that context that Sierra Leone undertook the comprehensive reform of its arbitration framework in 2022.
The Economic Context of Sierra Leone’s Mining Sector.
The mining and extractive sector remains central to Sierra Leone’s economic architecture. Our mineral resources—diamonds, iron ore, rutile, bauxite, gold and other strategic minerals—are not merely geological assets; they are engines of revenue generation, employment creation, infrastructure development, and foreign exchange inflow.
Yet mining is not a short-term commercial activity. It is capital-intensive, technologically complex, and exposed to commodity price volatility. Investors in mining projects often commit hundreds of millions of dollars in exploration, infrastructure, environmental management, and community engagement before seeing a return on investment. Such commitments are made on the basis of long-term confidence in legal stability.
This confidence is influenced by three principal considerations: regulatory predictability, fiscal clarity, and dispute resolution security. While geology determines opportunity, law determines sustainability. Investors require assurance that contractual disputes, regulatory disagreements, joint venture conflicts, or sovereign interactions will be resolved fairly and efficiently.
The Rationale Behind the Arbitration Act 2022
The Arbitration Act 2022 represents a transformative legislative reform designed to align Sierra Leone’s arbitration framework with modern international standards. The previous arbitration regime, rooted in legislation dating back to 1960, no longer reflected the realities of contemporary commercial arbitration or the expectations of international investors.
The 2022 Act modernised the legal framework by incorporating internationally recognised principles, including those reflected in the UNCITRAL Model Law. It reinforced Sierra Leone’s commitment under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and strengthened the enforceability of arbitral awards both domestically and internationally.
The strategic intent behind the reform was clear: to signal to the global investment community that Sierra Leone is committed to a rules-based, predictable, and investor-aligned dispute resolution system.
The Arbitration Act 2022 is not a symbolic reform. It introduces structural safeguards that directly respond to investor concerns. The Act codifies the principle of kompetenz-kompetenz, empowering arbitral tribunals to determine their own jurisdiction. It affirms the separability of arbitration agreements from underlying contracts, thereby protecting dispute resolution clauses even where substantive contractual disputes arise. It restricts judicial intervention except where expressly provided, reinforcing the autonomy of arbitral proceedings. Sierra Leone Arbitration Act also domesticated the New Convention for the of 1958 and the ICSID convention. Sierra Loene having been part of the ICSID arrangement since 1996, it was only in 2022 that attempts were made to accept awards emanating from ICSID.
These features are not technical embellishments. They are foundational guarantees of neutrality and predictability. For mining investors who commit capital on a 20-to-30-year horizon, such safeguards materially reduce legal uncertainty.
Arbitration as a Tool of Investment Promotion.
International arbitration has become the preferred mechanism for resolving disputes in the extractive industries. Mining contracts, production-sharing agreements, joint venture arrangements, and project finance documents frequently contain arbitration clauses. These clauses are not ornamental; they are risk mitigation instruments.
Arbitration offers neutrality. Parties can appoint arbitrators with technical expertise in mining law, project finance, geology, environmental regulation, or international commercial law. This expertise enhances the quality and legitimacy of decisions.
Arbitration offers enforceability. Under the New York Convention, arbitral awards are enforceable in more than 170 jurisdictions. This global enforceability reduces counterparty risk and enhances bankability.
Arbitration offers confidentiality. Mining disputes often involve sensitive geological data, proprietary financial models, and strategic commercial information. Confidential proceedings protect both state and investor interests.
Dispute Resolution and Project Continuity.
Disputes in the extractive sector can have cascading economic effects. A suspended mining project affects not only investors but also workers, contractors, suppliers, and local communities. Government revenue streams can be disrupted, affecting national budgets and public services.
An efficient arbitration and ADR framework reduces the likelihood of prolonged litigation. By providing timely and credible resolution, it protects project continuity and supports macroeconomic stability.
Judicial Support and Limited Intervention
The Arbitration Act 2022 balances party autonomy with judicial support. Courts play a supportive role in enforcing arbitration agreements, granting interim measures, and recognising awards. However, excessive judicial interference is deliberately limited.
This balance enhances Sierra Leone’s reputation as an arbitration-friendly jurisdiction. Investors require assurance that arbitration agreements will be respected and that awards will not be undermined by unpredictable court intervention.
Establishment of the Sierra Leone International Arbitration Centre (SLIAC).
The establishment of the Sierra Leone International Arbitration Centre reflects a commitment to institutional capacity-building. SLIAC is established to provide administrative support for arbitrations and promotes best practices in dispute resolution.Over time, SLIAC can serve not only domestic disputes but also regional and cross-border matters, positioning Sierra Leone as a credible arbitration venue within West Africa. Institutional development is essential for translating legislative reform into practical effectiveness.
The long-term vision for SLIAC is not merely administrative support. It is the cultivation of a domestic ecosystem of arbitrators, counsel, experts, and case managers capable of handling complex extractive disputes. By building local expertise, Sierra Leone retains greater institutional value within its borders while reducing dependence on foreign seats.
A functioning arbitration centre also enhances regional credibility. West Africa’s extractive sector is expanding, and jurisdictions with institutional arbitration capacity are better positioned to host disputes arising from cross-border mining operations.
Comparative Regional Perspective.
Across West Africa, jurisdictions such as Nigeria and Ghana have modernised their arbitration laws to attract investment. Nigeria’s Arbitration and Mediation Act 2023 and Ghana’s ADR Act 2010 demonstrate regional recognition that dispute resolution reform is a competitive necessity.
Sierra Leone’s 2022 Act situates the country within this modern legislative movement and signals policy alignment with international standards.
Arbitration and Sovereign Risk Perception.
Investors evaluate sovereign risk carefully. The availability of neutral arbitration reduces perceived political risk. It reassures investors that disputes will not be confined to domestic courts but may be resolved before independent tribunals.
Lower sovereign risk perception translates into reduced financing costs. When financing costs fall, projects become more viable. This directly benefits national economic development.
To illustrate, consider a hypothetical iron ore concession requiring an initial capital outlay of USD 300 million. If lenders perceive legal enforcement risk as elevated, financing costs may increase by even one percentage point. Over the life of the project, that incremental cost can amount to tens of millions of dollars. By contrast, a credible arbitration regime lowers perceived enforcement risk and directly reduces capital costs. Arbitration reform therefore has quantifiable financial implications.
Stabilisation Clauses and Regulatory Evolution
Modern mining agreements frequently include stabilisation clauses designed to protect investors from abrupt fiscal or regulatory changes. Disputes over the interpretation or scope of such clauses can arise during commodity cycles or legislative reform. A credible arbitration framework ensures that such disputes are resolved by neutral tribunals applying international standards of contractual interpretation rather than political pressure.
This enhances trust between the State and investors, allowing governments to pursue legitimate regulatory objectives while preserving contractual integrity.
The Role of Arbitration in Public-Private Partnerships
Mining infrastructure projects frequently involve public-private partnerships. Arbitration provides a neutral framework for resolving disputes between state entities and private investors.
This neutrality strengthens investor confidence in government contracts and promotes sustainable infrastructure development.
Transparency and Good Governance
Modern arbitration frameworks incorporate transparency mechanisms, including disclosure of third-party funding. These measures enhance accountability and reinforce public confidence in arbitration.
Strong governance structures complement legal reform and strengthen Sierra Leone’s investment reputation.
The Path Forward
Sierra Leone’s dispute resolution reform is an ongoing process. Continued institutional strengthening, regional collaboration, and investor engagement are essential. Sierra Leone is also a signatory to the Singapore Convention on enforcement of awards emanating from mediation. We are now in the process of domesticating that as well with our mediation Act which will act as a additional layer of support for dispute resolution mechanism.
Our objective is not merely to modernise legislation, but to embed a culture of efficient and credible dispute resolution across the mining and extractive sector.
Conclusion: Arbitration as a Pillar of Sustainable Investment
Arbitration today in Sierra Leone is not peripheral legal tool; it is now a major pillars of economic governance. In the mining and extractive sector, where investment horizons are long and capital exposure is substantial, dispute resolution frameworks influence investment decisions as much as mineral reserves.
The Arbitration Act 2022 represents Sierra Leone’s commitment to legal certainty, investor protection, and sustainable economic development. By consolidating these reforms and strengthening institutional capacity, Sierra Leone positions itself as a credible and attractive destination for responsible mining investment.
Dispute resolution reform is not simply about resolving conflicts. It is about building confidence. It is about enabling investment. It is about safeguarding national development. This what this panel of expert will spend the next one hour discuss and take through.
Thank you.
