Artisanal diamond mining licences in Sierra Leone have fallen sharply over the past three years, while gold production and exports have risen, highlighting a structural shift in the country’s small-scale mining sector, according to the National Minerals Agency.
Speaking at Sierra Leone Mining Week 2026 in Freetown, Mohamed Bah, Director of Precious Minerals Trading at the National Minerals Agency, warned that weak data systems and gaps in regulation are exposing the sector to illicit trade and lost revenues.
Bah said diamond licences issued to artisanal miners dropped from more than 1,200 in 2023 to 889 in 2024 and 679 in 2025, reflecting declining activity in the sector.
Diamond export earnings have also collapsed, falling from about $102 million in 2023 to roughly $21 million in 2025, driven by weakening global demand and structural challenges in industrial diamond production.
He attributed part of the decline to the growing dominance of synthetic diamonds, alongside weaknesses in Sierra Leone’s large-scale diamond mining sector.
More Read
In contrast, gold production has expanded steadily, with artisanal gold licences rising from 217 in 2023 to 319 in 2025.
Gold exports have also increased, with about 250 kilograms exported in 2025, generating nearly US$900,000 in revenue. Early 2026 figures show continued momentum, with 207 kilograms exported in the first two quarters alone.
According to Bah, a single large-scale operator accounted for roughly 63 percent of that output, while artisanal miners contributed around 37 percent.
More Read
He said recent regulatory improvements by the government and the National Minerals Agency were beginning to show results in the gold sector, but warned that growth is being undermined by weak oversight.
Bah cautioned that, unlike diamonds — where the Kimberley Process provides an international certification framework — Sierra Leone’s gold sector lacks a comparable structure, leaving it vulnerable to fraud, smuggling and unregulated buyers.
He said this regulatory gap creates opportunities for “scammers” and informal cross-border flows that reduce state revenues and distort official export data.
To address these challenges, Bah called for comprehensive feasibility studies to assess losses from illicit trade and to map the financial structure of artisanal and small-scale mining.
He argued that reliable data is essential for designing effective policy and attracting responsible investment into the sector.
“Where’s the data?” he asked, stressing that evidence-based planning would help government understand the scale of illegal activity and identify where interventions are most needed.
Bah also proposed the creation of a state-owned coordinating entity to manage investment, technical support and responsible sourcing initiatives in the artisanal mining sector.
Such an institution, he said, could help formalise operations, improve compliance, and reduce dependence on informal and often predatory trading networks.
He noted that while international stakeholders at the panel emphasised global standards, Sierra Leone must develop stronger domestic frameworks tailored to its own mining realities.
The policy direction he outlined centres on three pillars: improved data collection, targeted feasibility studies, and stronger state coordination to manage investment and regulation.
Bah warned that without such reforms, Sierra Leone risks further erosion of diamond revenues and uncontrolled expansion of gold production outside formal systems.
He said aligning institutional reform with investment incentives would be critical to ensuring that mineral wealth translates into sustainable national development and benefits for mining communities.
