By Mabinty M. Kamara
The Iluka Resources Limited has in a press statement announced suspension of Sierra Rutile operations in Sierra Leone due to certain difficulties encountered by the business.
According to the statement, the six month notice is a result of the acute business challenges the company has been facing, particularly since the covid-19 outbreak, noting that its operational performance has been below expectation which has resulted in financial unsustainability.
It added that during the six month period of the suspension notice, the company noted that it will “evaluate the feasibility of continuing mining operations in the existing mining areas, through implementing cost reductions and improve productivity, and continue the evaluation of the feasibility of developing the Sembehun group of deposits- the Sembehun deposits are situated 20 to 30 km north west of the current mining operation in Area1and collectively represent one of the largest and highest quality known rutile deposits in the world”.
The statement said there is the process to a identify third party willing to invest in the next phase of the Sierra Rutile’s development is currently underway.
However, in the event they are able to identify and implement the reduction of its cost base of the production, to maximize profit, the company will withdraw the suspension notice and continue with it mining operations.
According to the company they will engage and collaborate with the government of Sierra leone to develop measures that can address the financial problems of Sierra Rutile and facilitate the development of Sembehun.
Under section 118 of the Act , a suspension of this nature cannot exceed two years. To the extent that such efforts are not successful within this two year period, Sierra Rutile would move into closure and rehabilitation,” the statement reads.
This challenge according to the statement has also affected the production outlook for 2021 which was targeted at 145 thousand tons of rutile.
The statement came in the wake of a strike notice issued by the United Mines Workers who in a press statement threatened to institute iindustrial action against their employer, the Sierra Rutile Mining Company over what they referred to as violations of their rights as workers.
According to the workers, several calls for negotiation and dialogue with the management of the company in a bid to address their welfare have not yielded any positive result, reason for which they said in the statement that if their concerns are not addressed, they will down tools by the end of the 21 days.
“After series of meetings and discussions held, with you, the human resources manager and lately with the chief operating officer and over a period of five months, you have blatantly refused to comply with the relevant provisions in the Collective Bargaining Agreement (CBA) which ensures provide and protect the interest of welfare of all employee,” a letter addressed to the Chief Executive Officer reads in part.
It noted that the management has refused to negotiate with the union for the review of the operations of the wages and salaries structures among other allegations.
Sierra Rutile could not react to the concerns and allegations of the mines workers when Politico contacted the Information Officer.
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