Sierra Rutile Limited has been instructed via a Sierra Leone parliament motion dated 27th November, 2019 that they are in breach of a new law. Iluka Resources are an ASX (ASX:ILU) listed mining company headquartered in Perth whose subsidiary Sierra Rutile Limited operate out of Sierra Leone.
The new law, passed by the Sierra Leonian parliament, requires that “All large scale industries, mining companies with access to sea ports, river terminals or jetties” utilize such ports for export of their output and for the import of machinery, spare parts and 60% of their fuel imports.
The Sierra Leone parliament summoned the CEO of SL Mining, as well as other mining companies in the country, to a meeting at which they were informed that they have been failing to comply with the law. The matter is now under consideration with Sierra Rutile management.
The law was passed by the parliament to protect the road infrastructure in the country; where constant traffic, pollution and overcrowding by the trucks lead to fatalities on the roads and road degradation. The petroleum tankers are especially known to proliferate the damage due to a constant demand of fuel from the mining companies. Sierra Leone is recovering from a decades long civil war and the impact of civil war has severally affected the infrastructure. The demands from mining companies often come in direct conflict with the need of local populations, as they compete for scarce resources.
Sierra Rutile Limited is a wholly owned subsidiary of Perth based, Iluka Resources. Iluka Resources Limited acquired the company in 2016 and its main products are Rutile, Ilmentine and Zircoin. IFC, a member of World Bank, has vowed to invest 60 million dollars into the expansion of operations of Sierra Rutile Limited.