Sierra Rutile Holdings Limited has officially suspended all mining and processing activities at its Area 1 operations, as confirmed in a press release dated March 11, 2024. The company is currently engaged in discussions with the Government of Sierra Leone and staff, with plans to issue redundancy notices to approximately 25% of its workforce, including expatriate staff, by the end of March.

This decision, outlined in the 2023 Annual Financial Report, is a response to persistent weak market conditions and uncertainty surrounding the fiscal regime applicable to Area 1 operations. Sierra Rutile remains optimistic about a swift resolution with the government, aiming for an agreement on a fiscal regime that would support production given favorable rutile market conditions. However, if no agreement is reached in the coming weeks, the company may need to contemplate a complete closure of mining operations at Area 1, impacting the majority of the remaining workforce and personnel employed by contractors.

To support the affected workforce, Sierra Rutile will use funds generated from monetizing finished goods inventories to cover statutory termination benefits.

Despite the challenges, Sierra Rutile is actively progressing the definitive feasibility study for the Sembehun project, with results expected in April 2024. In the event of a full closure of Area 1 operations, the company may conduct a strategic review of the Sembehun project to maximize value for all Sierra Rutile stakeholders.