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Sierra Rutile Announces New Board Members Following Leoneoil Takeover


Sierra Rutile has announced the appointment of three new directors to its board following the recent takeover by Leoneoil.

The new directors are Mohamed Cole, Ibrahim Cole, and Patrick Lambert. Mohamed Cole brings extensive in-country experience and a background in engineering, having previously served as Marketing Manager and Managing Director for Sierra Leone National Petroleum. He is also a major shareholder in Leoneoil.

Ibrahim Cole is a seasoned Sierra Leone executive with experience in various sectors, including banking, international development, and infrastructure. He currently serves as the Managing Director of Leoneoil and has held positions at Bank of America, the European Union Delegation, and the Sierra Leone Roads Authority.



Patrick Lambert is a prominent lawyer in Sierra Leone with a strong track record in both local and international law. He is a Senior Partner at Lambert & Partners and has served as local counsel for negotiations with the Government of Sierra Leone.

Chairman Greg Martin expressed his enthusiasm for the new appointments, stating, “I would also like to welcome Mohamed Cole, Ibrahim Cole and Patrick Lambert to the Board. They will collectively bring a great depth of in-country experience to support Sierra Rutile in its next phase of development.”



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Leonoil to Acquire Sierra Rutile Holdings Limited in A$0.18 Per Share Deal


Sierra Rutile Holdings Limited has agreed to be acquired by Leonoil, a local Sierra Leonean company.

Leonoil has offered to purchase each share of Sierra Rutile for A$0.18 (Australian dollars), and the board of Sierra Rutile has recommended that all shareholders accept this offer.

According to Sierra Eye, Previously, another company, Gemcorp, had made a lower offer of A$0.16 per share, but they have decided not to proceed with their bid. With no other companies making higher offers, it seems likely that Leonoil will take over Sierra Rutile.



Leonoil, known for selling fuel and owning several gas stations in #SierraLeone and other West African countries, is 100% owned by Sierra Leoneans. This means that a significant part of Sierra Leone’s mining industry could soon be owned by a local company.

The directors of Sierra Rutile, who hold shares in the company, have already agreed to the deal with Leonoil. The board believes that this is the best option for the company and does not expect any better offers to come along.



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Government Orders Sierra Rutile to Resume Mining or Face Repercussions


The government of Sierra Leone has directed mining company Sierra Rutile to restart mining operations in Area 1 by the end of May. This directive comes after Sierra Rutile suspended activities in January due to a dispute over taxes.

The government views the suspension as a violation of the Mines and Minerals Development Act and has given the company until May 31st to comply. Sierra Rutile, however, disagrees with this stance and is currently evaluating its options in response to the government’s order.

The disagreement stems from ongoing negotiations regarding a new tax regime for Area 1. In May 2023, both parties began discussions for a “third amendment agreement” that would define the fiscal terms. However, negotiations stalled in January when the government decided to abandon the proposed agreement, reverting Sierra Rutile to the tax regime established in 2001.



The mining company argues that the older tax structure makes continued operations in Area 1 economically unsustainable. It remains to be seen whether Sierra Rutile will comply with the government’s order or take further action to defend its position.



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Sierra Rutile Holdings Limited Sets to Issue Redundancy Letters to Affected Staff


The management of Sierra Rutile Holding Limited has informed affected staff by the redundancy notice including Sub stewards and General Staff that the company will commence a three-day distribution service of redundancy letters to its affected personnels effective Tuesday 26th March 2024 to Thursday 28th March 2024.

The redundancy letters will be issued alongside the payment slips and redundancy calculation in relation to end of service benefits.

The company is however calling on the attention of all those affected to attend a verification exercise to meet the appropriate requirements for payments.



Payment will be made into individual accounts by the end of March 2024.

In a situation where an affected is unable to attend the verification process, an opened communication is required ahead of the stipulated time frame through the union providing reasons for your absence.

The company however disclosed not taking responsibility of any deferral after the verification exercise as a payment requirement.



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New Life for Sierra Rutile with PRM


Immediately news broke out of the proposed takeover of Sierra Rutile Limited by PRM the share price rise by 34%. At the global financial market this is what happened when good takeovers are announced. The hike is normally generated from the goodwill and reputation built over the years by the proposed company.

PRM the investment arm of Gerald Group, a US company with over 60years track record made a $40m takeover of the remaining shares being offered on the Australian Stock Exchange.
PRM already have 11.46% interest and voting right in the mineral sand mining company that was originally founded in 1971 my US based steel company Armco and Nord Resources.

Prior to PRM bid Sierra Rutile had suspended all mining and processing activities which will result in about 25% of staff mostly Sierra Leoneans losing their jobs. It is hope that this new takeover will not only save their jobs but brings renew hope to the future of the mineral sand mining company.



The mining landscape in Sierra Leone have had many challenges in the last decade which was down to the volatility of the commodity market and the inability to absorbed shock driven by the many global activities.

The takeover of Sierra Rutile Limited by PRM under the leadership of Craig Dean has been a welcome news by many in the mining and investment community both in and outside of Sierra Leone. His track record of running a successful trading company and the backing from Gerald Group the parent company cannot be over emphasised.

When he took over Marampa Mines Limited just over 3 years ago he focused on differentiation strategy. He secured and invested in the technology and personnel to produced a high grade Iron Ore product referred to as Marampa Blue from Lunsar. This product is amongst the best and highest grade in the world therefore showcasing Sierra Leone as hub for quality Iron Ore.

The level of investment Gerald Group had made to date at the Marampa Mines Limited is in excess of $300m all from equity.
Only serious investor with vested interest and trust for the people of Sierra Leone can convince his Board to approve such amount.

His track record in Sierra Leone in the last three years includes payment of over $40m to date to the Government of Sierra Leone through royalties, PAYE etc.
A record setting CDA payment.
Over 2000 jobs created whilst pushing government agenda in having over 30% of the workforce being women.

Having credible takeovers from companies like Gerald Group will only increase investor’s confidence and attract Foreign Direct Investment from similar players that will benefit Sierra Leone.

With their track record and every indication this takeover by PRM, there is hope for the future of Sierra Rutile Limited.



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Sierra Rutile Holdings Limited Suspend Its Area 1 Operations, Commence Redundancy Program


The Sierra Rutile Holdings Limited has announced suspension of its Area 1 operations and commenced redundancy Program.

The company confirmed that further to its announcement dated 29th February 2024 about the 2023 annual financial report has now suspended all mining and processing activities at its Area 1 operations and will commence a process of engagement with the Government of Sierra Leone and staff that will result in approximately 25% of staff, including expatriates being issued with redundancy notices by the end of March 2024.

The action, according to the company is said to be a prompt response to both ongoing weak market conditions and uncertainty regarding the fiscal regime applicable to Area 1 operations.



However, the company is optimistic that the suspension of operations will be brief, and an agreement will be reached with the Government of Sierra Leone on an appropriate fiscal regime that would again support production alongside supportive Rutile market conditions.

Should this not be achieved in the coming weeks, the company will need to consider the full closure of mining operations at Area 1 which will impact the great majority of the remaining workforce as well as potentially, a large number of personnel employed by various contractors.

The company will for the main time continue to monetise its finished goods inventories in the ordinary course of business and will use these funds to fund statutory termination benefits to members of the workforce that are made redundant.

Sierra Rutile Holdings Limited continues to advance the definitive feasibility study for the Sebehun project, results of which are expected to be announced in April 2024.

In the event that Area 1 operations move to full closure, the Company may look to undertake a strategic review of its Sebehun project with the objective of maximising value for the benefit of all Sierra Rutile Stakeholders.

Sierra Rutile Holdings Limited (SRX) is a Multi – Mineral Sands Operation straddling the Bonthe and Moyamba Districts in Southern Sierra Leone with over 2000 employees, representing one of the largest private employers in Sierra Leone.

The Company also holds ownership of rutile deposits, the Sebehun project.





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Government of Sierra Leone Revokes Temporary Tax Incentives Granted to Sierra Rutile


The Sierra Leone government has revoked a generous tax break for mining company Sierra Rutile Limited (SRL), citing the company’s improved financial performance as a breach of good faith.

In a letter addressed to SRL and made available to Sierraloaded, Finance Minister Shęku A.F. Bangura announced the government’s decision to revert to the original 2001 agreement’s fiscal regime, effective July 1st, 2023. This move cancels the temporary tax base reset incentives granted in August 2021 to help SRL recover from financial difficulties.

The minister justified the action by highlighting SRL’s “increasingly growing reported revenues and Net Profit After Tax of over $75 million in each of the last two years.” He argued that this success, driven by increased production and rutile prices, contradicted the justification for the tax break and deprived the government of much-needed tax revenue.



Bangura emphasized that the initial tax incentives were offered “in good faith” to ensure SRL’s survival after it threatened to suspend operations in 2021. However, he expressed disappointment that SRL failed to inform the government about its improved financial situation.

“This is completely unfair to the Government and people of Sierra Leone,” Bangura stated, pointing out the missed opportunity to use the withheld tax revenue for development programs.

The letter instructs the National Revenue Authority to collaborate with SRL to determine the revised tax obligations under the original agreement. It concludes by urging SRL to “show responsible business practice” and accept the decision.



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