Sierra Leone's Koroma moots mining reform if re-elected

FREETOWN (Reuters) - Sierra Leone President Ernest Bai Koroma said on Thursday he will boost tax revenues from the mining sector if he is elected to a second term in next month's elections, as part of a plan to combat poverty in the West African state.

Koroma will face off against opposition rival and former junta leader Julius Maada Bio in the November 17 polls, seen as a barometer of progress in the country as it continues to rebuild from a civil war that ended a decade ago.

"I promised an agenda for change and I delivered it. Now I am here promising an agenda for prosperity and by god almighty I will deliver," Koroma told supporters in the capital during the launch of his campaigning platform.

A copy of Koroma's campaign manifesto obtained by Reuters says he would aim to impose "optimum taxation on mineral assets" to boost state revenues, and would set up a sovereign wealth fund to manage some portion of the proceeds.

The proposed sovereign wealth fund would "support economic infrastructure, agricultural productivity, human capacity development as well as poverty reduction," the manifesto said, without providing details.

The document added that Koroma would seek to limit mining prospecting licenses to three years, and raise local hiring content in firms operating in the country.

Koroma is seen as the favourite against Bio, who has said he would review all the country's mining contracts due to concerns they do not provide a fair share of revenue to the state.

Sierra Leone produces iron ore, gold and diamonds and relies heavily on its mining sector for cash to fund its recovery from a devastating 1991-2002 civil war.

Companies that operate in Sierra Leone include iron ore producers African Minerals and London Mining, gold miner Amara Mining Plc, and diamond miner Koidu.

(Reporting by Simon Akam; Writing by Richard Valdmanis; editing by Ron Askew)