Political instability and lack of an enabling and internationally competitive environment conducive to attracting investments particularly affected the mining sector. Excessive government control and attempts to raise higher foreign exchange and fiscal revenues from artisanal diamond activities were detrimental to artisanal mining development. The study provides an assessment and analysis of the economic and social importance of the mining sector in Sierra Leone and its impact on economic outcomes. It makes recommendations and identifies an action plan for mining sector revival and development. The Government presented this report to the stakeholders, including its international development partners, at a workshop in May 2003. The outcome of the discussions and recommendations is reflected in the report. The resulting report was subsequently discussed in a second national workshop during January 2004. Since January 2003, the Ministry of Mineral Resources has focused on a number of fronts including: formation of a core mineral policy; deepening the policy work through a review of the mineral and regulatory framework; efforts to improve the development of basic mapping geo-information; completion of the initial work required for improved administration and management of mineral rights through a cadastre system; improvements in productivity, safety, and environmental conditions of mining activities; increased transparency in mineral sector revenues through the Extractive Industries Transparency Initiative and Kimberley Process; and improved social conditions in the mining areas. These efforts have led to positive results. Among the most notable are the sharp rise in diamond exports, the rehabilitation of a rutile mine initiated in May 2005, the current assessment of the possible reactivation of the existing bauxite mine during 2005; and a significant increase in mineral exploration.