1. THE
SIERRA
RUTILE
REVIEW
elcome to Sierra Rutile’s first newsletter of 2015. Last year
was defined by our struggle to contain the Ebola epidemic,
falling iron ore prices and the impact of Ebola on Sierra
Leone’s economy. By contrast 2015 already gives us cause for
optimism.
I am proud to say that Sierra Rutile’s annual report and accounts,
available on our website, shows a commendable performance in 2014,
and I would like to express my appreciation to Sierra Rutile’s
management and staff for their efforts in such difficult circumstances. I
am also pleased to announce that we have commenced the
construction of the Gangama dry mining expansion project. This will be
developed in two phases, each a separate 500 tonne per hour
operation. Sierra Rutile’s board of directors has given the go ahead for
the first phase.
It is encouraging to watch the country making great strides towards
zero, with an infection rate that has reduced to fewer than 30 Ebola
cases per week. To date, Sierra Rutile’s operations have been fortunate
to remain free of Ebola. Despite this our company, like the rest of
country, cannot afford to relax its vigilance. According to an old
Chinese saying, when you have made it 90 percent down the path, you
are halfway to your destination. The end is always the hardest stage of
the journey.
As well as exacting a terrible human and social toll, the epidemic has
ravaged Sierra Leone’s economy. The work necessary to ensure our
recovery beyond the epidemic has begun. Agriculture is an economic
mainstay of our country and a key driver of our economic recovery. The
conviction that focusing on the sector is essential if we are to ensure
the longer-term welfare of the most vulnerable in our society is the
impetus behind our new greenhouse agriculture initiative to boost
smallholder farming within neighbouring communities.
We are also working with the Sierra Leone Chamber of Mines (SLCOM)
to harness the mining sector’s contribution to economic recovery. In
February, SLCOM sponsored a discussion event in London’s House of
Commons intended to more clearly define the private sector’s role in
rebuilding the nation. At the event, Dr Samura Kamara, our Minister of
Foreign Affairs, reaffirmed Sierra Leone’s need for a diversified
economy, which provides opportunities for growth, employment and
development across different sectors.
His message could not be timelier. The lesson of the last year is that it
is time for us now to focus on private-sector development and
empower Africans to be responsible for their own destiny. For Sierra
Leone is a nation with a wealth of resources and investment and the
new era we have ahead of us, requires a united effort if we are to move
beyond being a nation of great potential to becoming one of great
purpose.
John Bonoh Sisay
CEO, Sierra Rutile
SIERRA LEONE IS A NATION
WITH A WEALTH OF
RESOURCES AND
INVESTMENT AND THE NEW
ERA WE HAVE AHEAD OF US,
REQUIRES A UNITED EFFORT
IF WE ARE TO MOVE BEYOND
BEING A NATION OF GREAT
POTENTIAL TO BECOMING
ONE OF GREAT PURPOSE.
“
”

2. SIERRA RUTILE’S $44 MILLION VOTE OF
CONFIDENCE IN SIERRA LEONEAN ECONOMY
Sierra Rutile gave Sierra Leone’s Ebola-hit economy a big vote of confidence on 21 April 2015, with the news that it is set to construct a
$44 million dry mine at Gangama, substantially expanding its rutile mining operations in the South of Sierra Leone.
Announcing the multi-million dollar investment at a meeting of international investors in London, John Bonoh Sisay, Sierra Rutile’s CEO
said: “We are very excited to be embarking upon the next phase of Sierra Rutile’s expansion. Sierra Rutile is a strong company with a
first class mining asset and operating team. Many other operators struggled to contain the impacts of Ebola, but we have worked
tirelessly to mitigate these and emerge even stronger as an organisation. The Gangama expansion project is a significant investment in
our operations and an important milestone in our history. As well as creating jobs in the area, both in the construction and operating
phase, it will help secure the long-term future of the company and positions us well to become the world’s premier low-cost producer
of high-grade mineral sands.”
Sierra Rutile has been one of Sierra Leone’s leading mining companies, since it started operations 48 years ago. The company currently
employs almost 2,250 people, either directly or through contractors, 95% of whom are Sierra Leone nationals.
Commenting on the good news, the President of Sierra Leone, His Excellency Dr Ernest Bai Koroma said: “Sierra Rutile’s announcement
of this major investment in its mining operations marks a turning point as we start to rebuild our economy following recent
Ebola-related challenges. I am proud that one of Sierra Leone’s most important companies has not only weathered the Ebola storm, but
is now emerging as a leading regional player in rebuilding our country’s future.”
The construction of the new Gangama dry mining operation will be similar to Sierra Rutile’s previous expansion project – the Lanti dry
mine, which was commissioned in January 2013. It will be developed in two phases, each capable of mining 500 tonnes per hour. Sierra
Rutile’s board of directors has approved the $44 million budget for the first phase of the project.
Gangama Phase 1 is expected to drive down Sierra Rutile’s total operating cash costs to $595/t and all-in operating cash costs to
$670/t on average over its first five years, cementing Sierra Rutile’s position in the global market as the premier low-cost producer of
high quality rutile. Construction of Gangama Phase 1 will begin this quarter and take 12 months, with first production targeted for the
second quarter of 2016.
THE
SIERRA
RUTILE
REVIEW
FIVE CHIEFDOMS WITHIN BONTHE AND MOYAMBA DISTRICTS
RECEIVE LE 510 MILLION FROM SIERRA RUTILE TOWARDS
AGRICULTURAL DEVELOPMENT FUND
Sierra Rutile has paid US$120,000 (Le 510 million) towards agricultural development in the five chiefdoms in its area of operations as
part of its corporate social obligations. The payment was witnessed by representatives from the Government of Sierra Leone.
The money, which is based on Sierra Rutile’s annual profits, is paid directly to the Government through the Ministry of Agriculture
Forestry and Food Security, the Ministry of Local Government and the Ministry of Mines and Mineral Resources. These Ministries
allocate the money among the chiefdoms, based on the extent to which their livelihoods have been affected by mining activities. This
year Imperri Chiefdom received Le 180 million; Lower Banta Le 100 million; Upper Banta Le 90 million; Jong Le 90 million; and Bagruwa
Le 50 million.

3. THE
SIERRA
RUTILE
REVIEW
GREENHOUSE AGRICULTURE TO BOOST SMALLHOLDER
FARMERS IN SIERRA RUTILE’S MINING COMMUNITIES
SIERRA LEONE’S BUSINESS COMMUNITY CALLS FOR
INVESTMENT-LED POST EBOLA ECONOMIC RECOVERY
When Sierra Leone’s business community and international
investors came together earlier this year in London’s House of
Commons, to discuss the post-Ebola economy at a Chamber of
Mines sponsored event, the overwhelming message was that a
sustainable economic recovery for Sierra Leone needed to be
investment-led.
The event - ‘Post Ebola economic renaissance in Sierra Leone
and the role of the private sector’ - was chaired by British
politician, the Right Honourable David Lammy MP and attended
by over 150 international and national business people,
financiers and investors. Representatives from Sierra Leone
included Dr Samura Kamara, the Minister of Foreign Affairs;
Momodu Kargbo, Governor of the Central Bank; Joseph Kamara,
the Head of the Anti-Corruption Commission; Professor Monty
Jones, Special Advisor to the President and H.E. Mr. Edward M.
Turay, our High Commissioner to the UK.
The opening speech was delivered by Sierra Rutile’s John Sisay,
who is also President of the Sierra Leone Chamber of Mines. He
emphasised the country’s resilience and economic potential.
“Sierra Leone is a country that holds much promise. It has been
tested over the years, but at every given occasion has shown
itself capable of facing down its challenges. Our country has
made resilience its backbone and real hope its oxygen. We are a
small country of six million people, but we have big ambitions
and our problems are small enough to fix.”
Simon Cleasby, CEO of Addax Bioenergy - a large agri-industrial
investment in Sierra Leone – gave the investor’s perspective. He
told the audience that Addax’s experience of investment in
Sierra Leone was positive, notwithstanding the immense
challenges that the country is facing. “We started production in
2014, have just made our first sales of bioethanol, and remain
completely committed to our investment, as well as to Sierra
Leone,” he said.
The keynote speaker, Dr Samura Kamara, Minister of Foreign
Affairs, focused on economic diversification: “Mining is the main
driver of revenue in Sierra Leone and the sector is estimated to
provide about 300,000 jobs, which is second only to
agriculture. As such it is extremely important to our future
prosperity; however Ebola reaffirmed our need to diversify the
economy, as we have learned from shocks such as this, and of
course the civil war, that resilience depends on opportunities
for growth, employment and development across different
sectors.”
Three other panellists - Mykay Kamara MD of A&A Investments
and Services; Isha Johansen, President of SLFA; and Amara O
Kuyateh, Deputy Director General of NASSIT - joined the
speakers in answering questions from the audience.
Capacity building emerged as a particular theme, with Mykay
Kamara saying: “It’s incredibly important that we couple
increased liquidity with capacity building. It is not just about
injecting capital into companies. We have to do that alongside
capacity development, across all aspects.”
Kamara’s point was underscored by NASSIT’s Amara Kuyateh
who said: “We need to invest in local leadership, building the
systems that support it and investing in the capability of local
people. Sierra Rutile is a testament to what investing in local
leadership and local capabilities can achieve.”
Sierra Rutile is working with agro-support specialists - Fresh
Salone, on a greenhouse agriculture initiative intended to boost
smallholder farming within neighbouring mining communities
and contribute to Sierra Leone’s economic recovery.
The US$45,000 agricultural livelihood sustainability project
includes the construction of five greenhouses, training for 93
farmers in agribusiness and modern farming techniques, a drip
line irrigation system and the supply of fertiliser, seeds and
pesticides to five farmer cooperatives in Imperi, Lower Banta,
Upper Banta and Jong chiefdoms.
Sierra Rutile’s Corporate Social Responsibility Manager, Jasmine
Clerisme, says: “In 2012 we undertook a livelihood survey of our
mining communities. This showed that 82% of the population
engaged in farming lacked access to capital and quality inputs.
This is because farming was largely done at a subsistence level
with limited opportunities for generating sustainable income.
The introduction of greenhouse agriculture provides an
opportunity for smallholder farmers to increase their income
and improve their business and financial management skills
through targeted training.”
As part of the initiative, the five cooperatives will enter into an
agreement with ATS, Sierra Rutile’s catering service provider to
supply produce at negotiated rates. ATS currently sources only
18% of its supply needs from local farmers but the introduction
of greenhouse agriculture is expected to increase this figure to
95%, and provide a reliable market for local farmers.
Commenting on the project, Alhaji Sidi Baun a master farmer
with over 35 years of farming experience and head of the
Matagelema Farmers Cooperative in the Lower Banta chiefdom,
said: “The benefits that this initiative brings extend beyond the
farmers who are directly involved, to the entire chiefdom. The
skills that we acquire will be learned for life and passed on,
helping us greatly in our fight against poverty.

4. HOW THE POWER OF BUSINESS
CAN HELP TACKLE EBOLA
More than ten years on from Sierra Leone’s civil war, the country’s economy had been showing signs of improvement, recording double
digit GDP growth in 2012 and 2013. The unprecedented arrival of Ebola in West Africa and its rapid spread added a completely new and
dynamic business risk.
As one of Sierra Leone’s largest employers, responsible for the direct and indirect employment of over 2,000 people, Sierra Rutile
quickly recognised Ebola’s potential for business disruption.
What was immediately apparent was the need to keep our workforce
safe. Our initial strategy was very simple and had three main elements:
i) Awareness building (regularly providing staff with information about
Ebola so they could recognise the disease and protect themselves);
ii) Screening (checking the temperature of all employees and visitors to
the mine site to keep potentially infected people out); and iii) Improved
hygiene (providing increased facilities for hand washing).
We also had to think beyond the mine. Mining operations of companies
such as ours are based in remote rural areas and are closely linked with
local communities. Around 60 percent of our workforce is from and/or
lives in surrounding villages and we use many local suppliers and
contractors. This tight interdependence between the company and the
community meant our approach to managing Ebola had to extend
beyond the mine itself and into the communities.
Working with traditional local rulers and community representatives
such as Paramount Chiefs, women’s groups, youth groups, district
councils and local parliamentarians, we initiated a daily house-to-house
temperature screening programme targeting an estimated 11,000
people. We also collaborated with the local security forces to set up screening check points, supplying them with thermometers and
chlorine. Equally important has been to circulate accurate and accessible information from the Ministry of Health, WHO and Centers for
Disease Control.
Perhaps the most visible sign of our response is the newly constructed quarantine and isolation unit in the grounds of our health clinic.
Ebola’s disproportionate impact on health workers has been well-documented and dedicated training as well as protective equipment
and clothing for them has been a crucially important investment.
A successful response to Ebola is critical for national economic growth. The GDP of Sierra Leone, which had been projected to grow by
over 11 percent in 2014 has since been revised down to 6.6 percent. While the facts don’t support the fear, the stigmatisation of the
Ebola-affected countries has manifested itself in suspended flights, visa bans, an ‘Ebola tax’ (freight surcharge) added to transportation
costs, and misinformation making travel in and out of the country difficult. This has hurt the Ebola response, as well as the Sierra
Leonean business community and generated anxiety among international investors.
Notwithstanding these challenges, we have managed to keep our operations going with minimal disruption. Over one year on, our
workforce remains Ebola free and our response has been pivotal in maintaining a robust operational performance. We sustained
improvements in cost efficiency and completed on budget the upgrade of our mineral separation plant. We also continued with our
expansion projects and have maintained a strong balance sheet.
Ebola has tested our resolve as a company, and also that of the country. What our experience clearly shows though is that we must
face such tests head on, including engaging widely with the local community and the rest of the private sector to come through the
other side.
THE
SIERRA
RUTILE
REVIEW
WORKING WITH TRADITIONAL LOCAL RULERS AND
COMMUNITY REPRESENTATIVES SUCH AS PARAMOUNT
CHIEFS, WOMEN’S GROUPS, YOUTH GROUPS, DISTRICT
COUNCILS AND LOCAL PARLIAMENTARIANS, WE
INITIATED A DAILY HOUSE-TO-HOUSE TEMPERATURE
SCREENING PROGRAMME TARGETING AN ESTIMATED
11,000 PEOPLE.
“
”
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