Sierra Rutile 2 (IFC-40101)

Countries
  • Sierra Leone
Geographic location where the impacts of the investment may be experienced.
Specific Location
Bonthe and Moyamba districts
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 25, 2019
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
SIERRA RUTILE LIMITED
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Mining
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 450.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Media Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 25, 2019

Disclosed by Bank Feb 20, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.
Accoording to IFC project disclosure information, the project entails the expansion of Sierra Rutile Limited (“SRL”), a mineral sands mining operation with a 50-year history producing high quality rutile and smaller quantities of ilmenite and zircon. The expansion is expected to increase production from current levels of about 150,000 tons per annum up to 300,000 tons per annum and extend the life of SRL’s operations by ~20 years. The expansion encompasses a staged approach to several projects, including expansions at the existing operations of Lanti Dry and Gangama (already underway, with commissioning planned in mid-2019), as well as a potential new mining development at the Sembehun group of deposits.
SRL has historically implemented social and economic development programs in support of its host communities. IFC will work with SRL, building upon IFC’s experience with other mining operations and SRL’s experience in the local community to enhance SRL’s impact on local community development, improve company-community dialogue, and develop SRL’s local supply chain. IFC will also launch a sector-level dialogue on the role of mining in Sierra Leone’s economic development and explore opportunities to enhance local benefits from Sierra Leone’s mining sector for local stakeholders.

 

SRL’s existing operations are located in the Bonthe and Moyamba districts, south west Sierra Leone. The Sembehun group of deposits are located 20 to 30 kilometers north-west of the existing operations.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total project cost is estimated at approximately US$450 million over the next 5 years, subject to ongoing studies. IFC’s proposed investment is US$60 million to acquire a 10% equity stake in SRL.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Iluka Resources Limited (“Iluka”) is the project sponsor and 100% shareholder of Sierra Rutile Limited. Iluka is an international mineral sands company with over 60 years of experience in exploration, development, mining, processing, marketing and rehabilitation. The company is headquartered in Perth, Western Australia, and listed on the Australian Stock Exchange (ASX: ILU). Iluka acquired SRL in December 2016.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Iluka Resources Limited Parent Company -
- - - - Sierra Rutile Limited Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Iluka Resources Limited (Iluka)
Melissa Roberts
General Manager, Investor Relations / Aminata
+ 61 (0) 450 398 431
investor.relations@iluka.com
240 St Georges Terrace Perth WA 6000
www.iluka.com

Sierra Rutile Limited (SRL)
Aminata Kamara (Aminatab.kamara@sierra-rutile.com)
Government Relations Manager
+232 78 44 4072
110 Wilkinson Rd PO Box 59 Freetown Sierra Leone
www.sierra-rutile.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works