By George M.O. Williams
FG Gold, the company developing the Baomahun Gold Project in Sierra Leone, has signed a Memorandum of Understanding (MoU) with the Bank of Sierra Leone (BoSL) to facilitate gold purchases from the project once commercial production begins.
The agreement, signed on September 22, 2026, marks the first arrangement between the central bank and a large-scale gold mining company under BoSL’s Gold Purchasing Programme.
According to FG Gold, the MoU establishes a framework for the Bank of Sierra Leone to purchase gold produced at Baomahun in local currency, creating what is expected to be the largest gold offtake arrangement in Sierra Leone’s history.
The company described the agreement as a significant milestone for the country’s mining sector and a major step toward strengthening Sierra Leone’s gold reserves and broader economic development.
FG Gold Executive Chairman, Oliver Tunde Andrews, welcomed the partnership, describing it as an important opportunity to deepen collaboration between the company, the Bank of Sierra Leone and the Government of Sierra Leone.
“We are pleased at this opportunity to further solidify the relationship between FG Gold, the Bank of Sierra Leone and the Government of Sierra Leone,” Andrews said.
He added that FG Gold fully supports the Bank’s gold purchasing initiative, noting that it would help increase the country’s gold reserves and contribute to economic growth.
The Baomahun Gold Project, valued at approximately US$700 million, is among the largest mining and infrastructure investments currently underway in Sierra Leone. FG Gold said the project is setting new standards for large-scale mining development in the country and across the region.
Upon completion, the mine is expected to produce approximately 150,000 ounces of gold annually, making it a significant contributor to Sierra Leone’s economy. The company estimates the project will account for about 10 percent of the country’s Gross Domestic Product (GDP) while creating up to 900 direct and indirect jobs during operations.
FG Gold noted that Sierra Leoneans currently make up more than 90 percent of its workforce, underscoring its commitment to local employment and capacity building.
Beyond mining operations, the company said it has invested significantly in community development initiatives within project-affected areas. These include the establishment of an education fund to support tertiary education and skills development, the upgrading of the 66-kilometre Matotoka-Baomahun access road, construction of the St. Joseph Bakhita Primary School, and the renovation of the Baomahun Health Centre. The company further disclosed that key mining infrastructure, including the power plant, processing plant, tailings storage facility, accommodation camp and administrative facilities, is at an advanced stage of construction and nearing completion.
FG Gold reiterated that sustainable mining practices, community partnership and environmental stewardship remain central to its operations.
The MoU with the Bank of Sierra Leone is expected to provide the foundation for future gold purchases from the Baomahun Gold Project, further enhancing the country’s efforts to build national gold reserves while maximizing the benefits of its mineral resources.