Sierra Rutile Limited

16 November 2009 the company raised $25m via a placing of 151,200,000 new shares at 10 pence. The proceeds of which will fund the three projects Dredge D3, upgrade D1 wet processing plant and upgrading the company's land plant. The upgrade to D1 would cost $2 million and increase rutile recovery by 5,000 tonnes and Ilmenite recovery by 1,000 tonnes per annum.

The third dredge would cost $20m adding 30,000 tonnes to annual capacity. Production was due to start in Q1 2010 and take 12 months to complete, the company later took some time to review this ambitious production schedule to redesign the dredge in order to reduce the build cost and increase its operating efficiencies.

In September 2010 it was announced that Pala took a 29.8% holding in TXR after acquiring the majority of the Ordinary Shares held by Mr Jean-Raymond Boulle - the previous majority share holder.

Pala is a US$1 billion multi-strategy investment company with a particular focus on mining and natural resource companies in both developed and emerging markets. Pala's exclusive investment advisor, Pala Investments AG, is a Swiss-based team with extensive experience within the mining and natural resource sectors. Pala seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative financing solutions.

During the second half of 2010 a dispute arose between the Government of Sierra Leone and Sierra Rutile Limited over the non payment of certain interest payments regarding a loan from the government. A resolution to the dispute was agreed in December 2010 when the government withdrew its request for the payment by Sierra Rutile Limited of all accrued interest plus the accrued balance and capital interest owing. Further, the government acknowledged that no event of default or potential event of default is outstanding, and that it has no claims regarding any prior events of default which may have occurred.

The company was previously known as Titanium Resources Group Ltd until name, web address and trading symbol changes in February 2011.[6]

On December 7, 2016, the company was acquired by Iluka Resources Limited for A$375 million[note 1]. Iluka incurred the company's outstanding net debt of A$80million.[7] Iluka has headquarters in Australia, but also operates in Sierra Leone and Sri Lanka.

The relevant materials minerals are mined, albeit in different ways. After the company extracts them, they are processed in a mineral separation plant. Once separated, a truck takes the minerals to the Nitti port to be shipped.[7][8]

Starting in April 2015, the Gangama dry mine was built by the Sierra Rutile company and DRA Projects.[9] On June 2, 2016, the Gangama Dry Mine was declared ready for action.[10] It was predicted to mine up to 500 tonnes of ore per hour; Iluka is considering expanding the mine capacity by an extra 500 tonnes of ore per hour.[7]

Completed in 2013, the Lanti Dry Mine collected up to 500 tonnes of ore per hour in 2016, with Iluka considering expanding the mine capacity by an extra 500 tonnes of ore per hour.[7] [11]

In 2016, the Lanti Dredge Mine could collect up to 750 tonnes of ore per hour, and later 1,000 tonnes of ore each hour.[12][8]

Sierra Rutile is currently exploring mining in Sembehun.[13] The company has already developed the appropriate plans and assessed the area as required by creating its Environmental, Social and Health Management Plan (ESHMP) and an Environmental, Social and Health Impact Assessment (ESHIA).[13] It has similarly received approval from Sierra Leone's Environmental Protection Agency and received an Environmental Impact Assessment License.[13]

On October 23, 2018, the Australian Mining newspaper reported that miners at the Sierra Rutile Company went on strike because four union leaders were suspended after a previous strike.[14] Because of the strike's impact on rutile production, on November 27, 2018, the newly elected president, Julius Maada Bio, got involved by asking workers to halt the strike.[15] The Sierra Leonean has since conceded that it will not punish the workers who participated in the strike. [15] Iluka Resources Limited, Sierra Rutile Limited's parent company, reported on November 28 that rutile production for the year would be negatively affected.[16][17]

In 2017, a former presidential candidate and the former CEO of Sierra Rutile, John Sisay, a cousin of former President Ernest Bai Koroma, was suspected of bribing high-ranking Sierra Leonean government employees to acquire mining contracts.[9] [18] These bribes seem to have come in the form of plane tickets, like that for Diana Konomanyi, who was a cabinet minister in the Sierra Leonean government at the time. [18]

"We aim to deliver maximum long-term shareholder value through the sustainable and efficient operation of the world-class Sierra Rutile mine."[19]

Iluka has aimed at a culture of strong ethics and conduct by encouraging transparency. At the Sierra Rutile Company, this has come in the form of Sierra Leone taxes paid being included in the Iluka's general disclosure reporting.[20]

The company looks to add to the domestic Sierra Leonean economy by creating more job opportunities, investing in local infrastructure and services, supporting local businesses, and by supporting the community. Iluka has contributed to the Ruby Rose Educational and Recreational Centre in Sierra Leone. Sierra Rutile has created a committee to oversee fund allocation towards community related events. This Community Development Committee (CDC) plans to allocate most funds towards education and CDC related plans.[20]

In 2017, Sierra Rutile constructed a 60-meter footbridge between Higima and Nyandehun villages in the Imperi Chiefdom to help people move more safely across the two areas. The bridge is located above Lanti Dredge pond's passage for surplus water (spillway).[20]

As of the merger in 2016, the company had approximately 1,600 employees, more than 95% of whom are Sierra Leonean.[7] In 2017, the company added 360 new employees to make a total of 1,985 employees (95% Sierra Leonean).[20] 93% of the employees are male and 7% are female. [20] In 2017, Sierra Rutile required the entire workforce to complete the new general induction program, which emphasized maintaining safe practices while on the job.[20]

In 2017, the company increased the number of hazard reporting numbers at the mine from 34 per month in the second quarter of 2017 to 342 per month in the fourth quarter of 2017. [20] Iluka mandated that Sierra Rutile focus on identifying risks and preventing them to ultimately create a fatality free workplace.[20] As a result, workers are required to wear safety boots, shirts, and pants;[20] take a daily alcohol test;[20] and review the action plans for higher-risk activities.[20]

At the end of 2017, there were 45 recorded serious potential injuries (SPIs) at the Sierra Rutile workplace.[20]

The Iluka group defines social performance as maintaining good health and safety practices, communicating and receiving feedback from investors, and promoting human rights related values where necessary.[20] Iluka has committed to maintaining indigenous cultures in Sierra Leone and as such are required to draft Cultural Heritage Management Plans to ensure that the rights of indigenous peoples are not violated.[20]

Because Iluka operates in multiple biodiverse locations, it looks to:

• Have experts conduct survey assessments of relevant plants and animals[20]
• Evaluate how local bodies of water affect the ecosystem[20]

The Sierra Rutile company hired a geotechnical specialist consultant to conduct quarterly inspections. [20]