London Highlights Anti-Corruption Measure for Mining and Energy

A new London measure designed to combat corruption in resource-rich countries by requiring mining and energy companies to disclose payments to foreign governments was highlighted this week by U.K. President  in a speech.

The requirement is a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July.

We are also engaging with the Sierra Leone Ministry of Finance and Economic Development, the African Development Bank and World Bank on infrastructure planning schemes. This includes a study into the development of a deep sea port.

London Mining Plc pledges to support the Extractive Industries Transparency Initiative (EITI) and to promote and initiate transparency in the revenues paid to governments and state-owned companies.

Extractive industries can have significant effects upon the economic growth and social development of the countries in which they operate. The effects are multifaceted and far reaching, but one of the most significant is perhaps the tax revenue which is generated for governments from mining activities. A lack of transparency and accountability of how these taxes are utilised and distributed can lead to corruption and poor governance. Therefore, London Mining believes that the disclosure of these revenues could lead to improved governance in resource-rich countries and help contribute to stable, long-term investment climates, economic growth and the sustainable development of communities.

London Mining is producing from its Marampa Mine in Sierra Leone and developing two other iron ore mines in Saudi Arabia and Greenland as well as a coking operation in Colombia. All London Mining's assets have deliverable production with potential for expansion. The Company listed on AIM in London on 6 November 2009. It trades under the symbols LOND.L (Reuters) and LOND LN (Bloomberg).

We are talking with the Sierra Leone National Registration Office to arrange a site visit to get the local workforce supplied with National ID cards. This will not only enable us to have accurate and reliable data on the individuals working at our site, it will also mean these individuals can register to vote in elections.

Our vision is to maximise value for all stakeholders and to become a top 10 supplier to the steel industry within the next five years. We will do this through partnerships that create an environment conducive to investment and ensure local economic, environmental and social conditions are improved through our operating presence.

London Mining made its first coal acquisitions in August 2008 as part of an overall strategy to develop a complimentary metallurgical coal supply for its iron ore production and in doing so take advantage of the robust long-term outlook for thermal coal. The Company owns 100% of London Mining Colombia, a coking coal developer in Colombia.

Globally, we face a number of challenges:

• Increased shareholder and stakeholder activism;
• A greater connection between grassroots NGOs and international movements;
• Increased competition due to globalisation;
• Greater capital and credit constraints leading to risk aversion from global financial institutions; and
• Growing resource nationalism, putting at risk new mine development which requires long term capital commitment.

London Mining Plc pledges to support the Extractive Industries Transparency Initiative (EITI) and to promote and initiate transparency in the revenues paid to governments and state-owned companies.

Extractive industries can have significant effects upon the economic growth and social development of the countries in which they operate.

The effects are multifaceted and far reaching, but one of the most significant is perhaps the tax revenue which is generated for governments from mining activities. A lack of transparency and accountability of how these taxes are utilised and distributed can lead to corruption and poor governance. Therefore, London Mining believes that the disclosure of these revenues could lead to improved governance in resource-rich countries and help contribute to stable, long-term investment climates, economic growth and the sustainable development of communities.

The law firm and Sterling, in a commentary  on the Section 1504 provision, says that in addition to increased costs of establishing appropriate disclosure procedures, mining and energy companies may also have to deal with “public relations concerns” resulting from public disclosure of payments.  In addition, disclosure “could put U.K. reporting issuers at a competitive disadvantage in commercial negotiations with foreign governments” relative to companies not subject to U.K. regulation.

Section 1504 of the Act mandates that publicly -held “resource extraction” companies disclose, in their annual reports to the U.K. Securities and Exchange Commission, information regarding payments made to any foreign government or the U.K. federal government for the purpose of the commercial development of oil, natural gas or minerals.




In his speech to the General Assembly,  President cited a need for “broad-based economic growth” among nations, but he also noted “certain ingredients upon which sustainable growth and lasting development depends” and which may be lacking in cases.