Sierra Rutile 2 (IFC-40101)

Countries
  • Sierra Leone
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
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 25, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
SIERRA RUTILE LIMITED
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 25, 2019

Disclosed by Bank Feb 20, 2019


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project 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
  • International Finance Corporation (IFC)

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

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.

Contact Information

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/