By Amin Kef (Ranger)
Sierra Rutile Limited, one of Sierra Leone’s leading rutile mining companies, has announced a temporary suspension of its operations in the country. In a notice issued by Barry Honnah, the Company’s Human Resource Manager, the decision was made to allow for negotiations between the company and the Government regarding a fiscal regime.
Effective March 11th, 2024, Sierra Rutile Limited will cease operations until further notice. The suspension comes as the company aims to collaborate with the Government of Sierra Leone (GoSL) to establish a mutually agreeable fiscal framework for Area 1. During this period, only essential staff, such as security personnel, will remain on-site to safeguard the company’s assets. All other employees will be required to stay at home, with full salary payments guaranteed unless otherwise directed.
The temporary suspension is a strategic move by Sierra Rutile Limited to focus on restructuring its operations, reducing costs, and adjusting production plans in response to current global market conditions impacting rutile demand and prices.
“This decision, albeit challenging, is necessary as we navigate through negotiations with GoSL and reshape our business for a sustainable future,” stated Sierra Rutile’s Board and Management.
However, the situation has introduced uncertainty among the workforce. The company urges patience as it endeavors to secure an agreement with the Government that supports production under conducive market conditions.
The fiscal dispute stems from the Government’s decision, as conveyed by Minister of Finance, Sheku Fantamadi Bangura, in January, to reverse tax incentives granted to Sierra Rutile Limited through a Parliamentary agreement in 2001. Despite attempts to reach Minister of Mines and Mineral Resources, Julius Mattai, for comment on the company’s suspension, no response has been provided.
Sierra Rutile Limited remains committed to finding a resolution that benefits both parties and ensures the long-term sustainability of its operations in Sierra Leone.
