Iluka Resources the company that acquired Sierra Rutile Limited plans to invest $60 million over the next two years to improve on the operations of Sierra Rutile. The planned investment is to continue with feasibility studies aimed at expanding the mine to significantly increase rutile output. The expansion operation will include increasing production from 250 tonnes per hour to 500 tonnes per hour for the Lanti dry mining. Also it includes to increase Gangama dry mining output from 250 tonnes per hour to 500 tonnes per hour and to develop the Sembehun dry mining project to produce 1,000 tonnes per hour.
The acquisition of Sierra Rutile discussed as a merger between Iluka and Sierra Rutile was finalized on 7 December 2016 and the total transaction cost is A$ 393 million (Australian Dollar). Iluka also assumed the total debt of $59 million. Now Sierra Rutile operates as a wholly owned subsidiary of Iluka Resources.
At a press conference in the company’s Freetown office on 20 January 2017, Rob Hattingh the Chief Executive Officer (CEO) of Sierra Rutile who replaces John Sisay denied local and social media reports that alleged that he made racist comments referring to indigenes working for the company at the managerial level as monkeys in a zoo.
Rob Hattingh in a statement issued by Iluka on 8 December 2016 is quoted to have said, “Iluka and Sierra Rutile management will focus initial priorities on operational, safety and other enhancements. The experience and skills of Sierra Rutile’s employees will be a key factor in the success of the integration and operational growth.”
At the press conference, he said he is “delighted to work with the Sierra Rutile team.” Mr. Hattingh has years of experience working in mineral sand management in Africa and other places in the world.
Rob Hattingh recognized the successes Sierra Rutile made before Sisay’s resignation especially increasing production to 126,000 tonnes of rutile in 2015. One of his operational objectives is to work on that success and see how he can improve on it to increase output. He also highlighted that John Sisay has had a formative influence on the development of the operation since 2001.
Sierra Rutile began operation in 1962 and is a major employer in the country.
Monday January 23, 2017
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