Freetown — Government would receive the colossal sum of Le355.1 million from Koidu Holdings company for the next 17 years after the signing of a new mining agreement between the two parties.

A representative of the legal and policy unity at State House, Frank Kargbo said the company would pay government the sum of $18 million which will include 8% as royalty, 30% income tax, 15% withholding tax, and 0.5% valuation fee, among others.

He said the reviewed agreement was geared towards raising more capital for government and confirm the country as a safe business environment, adding, "The new mining lease has been increased from $50,000 to $200,000 per year. Tax on dividend still remains the same."

"Provision has been made for Koidu Holdings to contribute to social and environmental funds, with 0.25% of profit gained to corporate social responsibility. The agreement can stand the test of any international standards," he added.

Minister of Mineral Resources and Political Affairs, Alpha Kanu said the signing ceremony marked the end of a long review process that started in 2006.

"Government revenue for mining never exceeds $6 million. With the review of this agreement, the company alone can now generate up to $18 million a year. We believe it is a good improvement for government," he said.

Chief executive officer of Koidu Holdings, Jon Joubert committed his company to the terms and conditions inside the agreement, noting, "Our objective is to satisfy all and fulfill the dreams of Sierra Leoneans."