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(Repeats story first published Nov. 15, text unchanged)

* Poll to gauge progress in war-scarred West African state

* Iron ore mining triggers revenue boom, optimism

* Election preparations peaceful so far

By Simon Akam

TILORMA, Sierra Leone, Nov 15 (Reuters) – When the European

Union’s chief election observer Richard Howitt asked people in

this remote village last month if they had concerns about Sierra

Leone’s looming presidential poll, he got a sobering response:

what is voting?

The question from one of the villagers in the gold and

diamond mining district of Kenema underscored the challenges

facing this West African country ahead of Saturday’s elections,

which will become the latest test of democracy in a region

notorious for flawed polls, civil wars, and coups.

Incumbent President Ernest Bai Koroma, a former insurance

executive who came to power in 2007 in elections generally

considered free and fair, will face off against former junta

leader Julius Maada Bio.

At stake is a chance to oversee hundreds of millions of

dollars of recent investment in the country’s rich, but mostly

untapped, mineral resources.

If managed well, cash generated by Sierra Leone’s burgeoning

mining sector could transform a country that still bears the

scars of a 1991-2002 civil war into one of the world’s fastest

growing economies, and help lift many of its 5.5 million

citizens out of crippling poverty.

But fears of corruption, or a return to instability, remain

and presidential hopefuls are seeking to convince voters they

are best placed to root out graft, bridge ethnic divisions and

ensure the country gets its fair share from mining deals.

“We are expecting development for the country, like good

roads, jobs, light,” Henry Tommy, a 35-year-old self-employed

stone mason in Freetown said. “Now this country is a peaceful

country, we don’t want no fighting no more.”

Francis Kumah, the IMF’s resident representative, said the

start up of iron ore shipments by British firms African Minerals

and London Mining could fuel 20 percent growth in Sierra Leone

this year, and yield royalty revenues of between $125 and $250

million per year by the end of the next administration.

In a country whose entire national budget currently hovers

around $500 million, that is a lot to play for.

Sierra Leone also holds rich deposits of diamonds – which

helped fuel the civil war – gold, and other minerals. Its

election follows polls in regional neighbour Ivory Coast, which

sparked a civil war, and Guinea Bissau, which triggered a coup.

ETHNIC LINES

Koroma, viewed as the favourite in the election, has scored

points for infrastructure projects during his first term, with

new roads appearing in Freetown and beyond, and the completion

of the first stage of a long-delayed hydropower dam.

International companies have also arrived with investments

in agriculture – including a $1.2 billion rice and rubber

project inked earlier this year. The World Bank

said foreign direct investment in the first eight years since

the end of the civil war topped a half billion dollars.

“The fact that the direct foreign investment has

substantially increased is a reflection of the confidence people

are having in the country,” Koroma told reporters in Freetown

earlier this week.

However, Koroma’s government has also taken flak for alleged

softness on corruption and for signing opaque deals.

The country’s Anti-Corruption Agency has not sent a single

person to jail during Koroma’s term, his vice president and

running mate was investigated and later cleared of graft in

timber deals, and neither African Minerals nor London Mining’s

arrangements conform to Sierra Leone’s mining code.

Koroma’s challenger Bio, a member of the military government

that held power in Sierra Leone for four wartime years and who

served briefly as head of state in 1996, has attacked Koroma’s

record and promised to review all existing deals and the mining

code if elected.

“President Koroma, when he won the election, was not as

popular as I am today,” Bio told Reuters after a rally in

Moyamba in the southern province of Sierra Leone. “My name is a

household name in the country.”

Political allegiance in Sierra Leone, however, is largely

drawn on ethnic lines. Koroma’s All People’s Congress Party

draws its support from the Temne and Limba tribes of the north,

while Bio’s SLPP is rooted in the Mende of the south and east.

The strength of ethnic ties means it will be hard for either

candidate to take the 55 percent required to win outright in the

first round, meaning a run-off election is likely. But the

powers of incumbency make Koroma the favourite.

Preparations for the poll have been largely peaceful,

although the U.S.-based Carter Center election observer mission

said on Nov. 1 it was concerned by lacklustre voter education

efforts at ward level and “troubling cases of intimidation of

women candidates during the parties’ primary and nomination

periods.”

Koroma’s government has said it will deploy 1,500 soldiers

to help police keep order on election day in case of any unrest.

(Editing by Richard Valdmanis and Keiron Henderson and Jon

Boyle)