Mining Weekly reports that Sierra Leone's parliament is to vote on Tuesday on a proposed bill that will raise royalties on the production of diamonds, gold and other precious metals, and grant the government the right to own a stake in big mining projects.



The bill is aimed to correct the effects of years of mismanagement as well as consequences of the 1991-2002 civil war that have neutralized Sierra Leone’s mining potential and perpetuated poverty.



Mining Weekly quotes Reuters’ interview with Trade and Industry Minister David Carew: "We want an act that will bring predictability, consistency and sustainability to our mining sector."



He added: "We found out that over the years people were negotiating their own agreements outside the mining act. As a result there were various qualities of agreement inconsistent with our policy, negotiated at a time when the country was vulnerable."



If the bill is enacted, it will lift royalty rates, grant the government the option to take a share in large mining projects, increase the mining companies' obligations to develop local communities, and ensure they cannot maintain cheap mining licenses without taking action.



The new proposals include increases in royalty rates to 6.5% on diamonds, increased from 5%, and to 5% on gold and other precious metals, increased from 4%.



Mining companies will be required to spend 0.1% of annual gross revenues on community initiatives, and new entrants will have to operate under a new non-exclusive "reconnaissance" license.



Carew noted that the Sierra Leone government has renegotiated a "special agreement" with Koidu Holdings, a private, Israeli-owned diamond company that mines the country's deepest vertical kimberlite diamond pipe.



In the aftermath of reforms, Sierra Leone has aspired to be investor-friendly. The country’s ranking has risen seven places to 30 over the past two years in the Ibrahim Index of African Governance.