Climate Change Data

Sierra Rutile Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmental Management
  • Social Investment
  • Governance

Environmental Achievements

  • 150 hectares of previously disturbed land rehabilitated in 2022; plans in place to rehabilitate 250 hectares in 2023.
  • Full year land rehabilitation target for 2022 of 152ha was achieved.

Social Achievements

  • Commissioned two community health centers.
  • 145 pupils and students benefited from the Sierra Rutile Educational Scholarship Programme.
  • 518 staff benefited from 25 formal courses delivered.
  • 1,536 staff and contractors participated in 38 internal training sessions.

Governance Achievements

  • Established a dedicated Sustainability and Social Accountability Committee.
  • Implemented various policies including Diversity & Inclusion Policy, Anti-Bribery and Corruption Policy, Market Disclosure and Communications Policy, Non-audit Services Policy, Privacy Policy, Securities Dealing Policy, Whistleblower Policy, Grievance Mechanism Policy, Supplier Code of Conduct, Human Rights Policy

Climate Goals & Targets

Medium-term Goals:
  • Phased development of Sembehun deposits to leverage existing infrastructure and increase production.
Short-term Goals:
  • Rehabilitate 250 hectares of land in 2023.

Environmental Challenges

  • Extreme weather conditions impacting production in Q3 2022.
  • Fire at the main consumable storage warehouse.
  • Ongoing COVID-19 operational challenges.
  • Demerger distractions.
  • High quarterly rainfall in Q3 2022.
  • Low ore stockpiles pre-wet season.
  • Rise in oil prices.
  • Increased haulage distances.
  • Challenging market conditions due to increased energy input costs and reduced end-user demand.
Mitigation Strategies
  • Relocation of DM1 and DM4 mining units and scrubbers to stationary positions.
  • Adding higher-grade tails as supplementary feed to enhance production.
  • Replacement of spirals at the Mineral Separation Plant (MSP) Feed Preparation Plant (FPP).
  • Purchase of a third barge to enable record shipments.
  • Focus on efficiency gains and mine life extensions.
  • Development of the nearby Sembehun deposits.
  • Implementation of training programs, risk assessments, and enhanced hazard identification to improve safety performance.
  • Structured and inclusive engagement with local communities.
  • Significant contribution to communities through wages, local sourcing, social investment, and statutory payments.

Supply Chain Management

Responsible Procurement
  • Local sourcing initiative
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather

Reporting Standards

Frameworks Used: JORC Code 2012

Third-party Assurance: PwC Australia

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Sustainable Operations
  • Community Development
  • Safety
  • Environmental Rehabilitation

Environmental Achievements

  • Achieved milestone rehabilitation of 285ha in 2023 (against regulatory requirement of 150ha), planting over 305,000 seedlings.

Social Achievements

  • Improving local communities through education and healthcare. Established a new Antenatal Care Unit at the Sierra Rutile Clinic.
  • One of the largest private employers in Sierra Leone, with over 2,100 direct staff.
  • Contributed over US$17m directly to government and local communities in 2022.

Governance Achievements

  • Country-leading safety performance with LTIFR <0.5 and TRIFR <1.0.

Climate Goals & Targets

Long-term Goals:
  • Long-term opportunity with Sembehun, expected to significantly extend mine life, materially lower cost structure and leverage existing processing and logistics infrastructure
Medium-term Goals:
  • Sembehun Construction
Short-term Goals:
  • Sembehun FID in H1 2024
  • Sembehun DFS completion in January 2024
  • Resolution of Third Amendment Agreement with GoSL

Environmental Challenges

  • Depressed feedstock markets resulting in Area 1 cash generation below expectations.
  • Negotiations with the Government of Sierra Leone (GoSL) regarding the Third Amendment Agreement.
  • Recent controversy regarding unrelated iron ore port and rail infrastructure causing significant distraction for GoSL.
  • Declining rutile production globally due to limited number of rutile-rich deposits.
Mitigation Strategies
  • Material capex spent in past 12 months to maintain viability of operations at lower production levels during difficult market conditions.
  • Seeking senior debt, subordinated debt, and equity funding opportunities.
  • Executing Mogbwemo Tailings Project to reduce costs and extend Area 1 mine life.
  • Clearing excess inventories as market conditions improve.

Supply Chain Management

Climate-Related Risks & Opportunities