• About
  • Advertise
  • Privacy Policy
  • Contact
Monday, May 16, 2022
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
No Result
View All Result
The Vaultz News
No Result
View All Result

Australia: Iluka Resources Exits Sierra Leone Mineral Sands Assets

April 13, 2022
Stephen AbankwahbyStephen Abankwah
in Extractives/Energy
0
mine

Heavy Duty Machines on mining site

Iluka Resources has finally landed an exit strategy for its underperforming West African mineral sand business, Sierra Rutile.

In line with plans, Iluka will spin-out the Sierra Rutile Holdings, an Iluka subsidiary, into its own Australia-listed mineral sands company, which will continue to maximize value from the Sierra Rutile Project and prioritize development of the Sembuhan project.

The Company’s Board said that a demerger would allow the company “focus its capital allocation priorities and management attention on its core Australian assets and development opportunities”. According to the Board, “The demerger will simplify Iluka’s structure and ensure management focus is on executing its attractive Australian-based growth opportunities.”

RelatedPosts

Ghana: Adopt Strategic Plan to Build Robust Critical Minerals Value Chain

Saudi Aramco Chalks Highest Oil Profit, Rising More than 80%

Asante’s Chirano Acquisition Deal Among 81 Biggest Mining Deals in Q1 2022

Meanwhile, the demerger remains subject to final Board, regulatory and shareholder approvals. If all goes to plan, the demerger is expected to be completed in 2022. All of the shares in Sierra Rutile will be distributed to Iluka shareholders in proportion to their existing shareholding in Iluka.

The demerger is intended to separate an underperforming asset from Iluka’s remaining three Australia-based assets. If Sierra Rutile continues to struggle, then those headwinds will be isolated to the new entity and no longer weigh on Iluka.

Iluka’s Managing Director, Tom O’Leary said the company’s strategic and capital allocation priorities are now focused on Australian operations and development projects, most notably the Eneabba Rare Earths Refinery Project. 

resources
tractor

On April 3, 2022, Iluka’s Board gave the green light to develop Australia’s first rare earths refinery. At full production, the plant could supply up to 9 per cent of global rare earth oxides.

Iluka acquired the Sierra Rutile Project in 2015 for US$330 million. The investment has fallen well-short of expectations following a substantial US$290m impairment in December 2019.

Iluka Managing Director Tom O’Leary said then that the company had underestimated the difficulties and complexity of operating in Sierra Leone.

Sierra Rutile Deposit

Challenges aside, Sierra Rutile hosts the world’s largest rutile deposit and comprises two operations at Lanti Dry and Gangama. Materials are processed at the company’s mineral separation plant and exported via a dedicated port facility.  

Iluka delivered its 2021 full year results during February 2022 reporting season. Revenues for Sierra Rutile increased 4 per cent to $232.7 million or 15.8 per cent of Group revenues.

Sierra Rutile has struggled to lower costs, even at higher production levels. The $232.7m revenue figure translated to just $17.1 million in earnings, or 3.3 per cent of Group earnings.

One fancied local project is Iluka’s Eneabba rare earths operation in Western Australia, which achieved a significant milestone in early April after the Iluka board approved the construction of the Eneabba rare earths refinery.

Representing phase three in Eneabba’s development timeline, Iluka completed its feasibility study for the refinery, demonstrating the venture’s strong economics and significant growth potential.

resources
Heavy duty machines

Sierra Rutile will be established with a high-quality board and management team, led by Martin, who will become the new company’s inaugural chair, with current chief executive officer Theuns de Bruyn becoming Sierra Rutile’s managing director and Chief Executive Officer.

Sierra Rutile’s principal business activities will be the management and operation of its existing Area 1 mine, which encompasses two operations at Lanti and Gangama, along with a mineral separation plant, and a dedicated port facility.

Located 30 kilometres from Sierra Rutile, the Sembuhan project boasts being one of the largest and highest-quality known rutile deposits in the world and will be another key priority of the new company.

READ ALSO: Assin North MP’s Case: We’re Weighing Options- Abraham Amaliba

Tags: AssetsBoardBusinessResourcessands

Send your news stories to [email protected] and via WhatsApp on +233543050759.

Related Posts

Minerals
Extractives/Energy

Ghana: Adopt Strategic Plan to Build Robust Critical Minerals Value Chain

May 16, 2022
saudi aramco
Extractives/Energy

Saudi Aramco Chalks Highest Oil Profit, Rising More than 80%

May 15, 2022
mining
Extractives/Energy

Asante’s Chirano Acquisition Deal Among 81 Biggest Mining Deals in Q1 2022

May 14, 2022
oil and gas
Extractives/Energy

Oil & Gas Windfall Could Boost Clean Energy Investment- IEA

May 13, 2022
energy
Extractives/Energy

Ghana: Renewable Energy Sources to add Paltry 0.78% to Power Generation in 2022

May 13, 2022
hydropower
Extractives/Energy

Angola: Well-Designed Infrastructure Plan Needed to Keep Pace with Hydropower Demand

May 12, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

UBA Chairman Assures Shareholders of Sustaining the Bank’s Growth Trajectory

Next Post

South Africa: Over 250 People Killed in Floods

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
Fidelity Bank launches ‘Yenko Dubai’ Promo for its agents
Banking

Fidelity Bank launches ‘Yenko Dubai’ Promo for its agents

by Stephen M.CMay 16, 2022
We Need to Identify Ways to Make up for Potential Future Gaps- FAO
Asia

We Need to Identify Ways to Make up for Potential Future Gaps- FAO

by Deborah Dzifah TamakloeMay 16, 2022
Nkoranza Shooting: Albert Was Targeted- Nkoranza MP
General News

Nkoranza Shooting: Albert Was Targeted- Nkoranza MP

by Priscilla KorantengMay 16, 2022
Nollywood actress Dorcas Shola-Fapson(DSF) has been called out by the stylist who dressed her for the just-ended Africa Movies Viewers Choice Awards.
Entertainment

Dorcas Shola-Fapson And Stylist Drag Each Other Over AMVCA Dress Debts

by Dorcas DamehMay 16, 2022
North Korea: Over a Million Covid Cases Feared
Asia

North Korea: Over a Million Covid Cases Feared

by Edem NyonatorMay 16, 2022
American ace rapper, Kendrick Lamar has announced that his next album release will be the last with his long-time record label, Top Dawg Entertainment (TDE).
Entertainment

Fame Means Nothing To This Man- Netizens Stunned As Kendrick Lamar Plays Football At Jamestown

by Dorcas DamehMay 16, 2022
Fidelity Bank launches ‘Yenko Dubai’ Promo for its agents
We Need to Identify Ways to Make up for Potential Future Gaps- FAO
Nkoranza Shooting: Albert Was Targeted- Nkoranza MP
Nollywood actress Dorcas Shola-Fapson(DSF) has been called out by the stylist who dressed her for the just-ended Africa Movies Viewers Choice Awards.
North Korea: Over a Million Covid Cases Feared
American ace rapper, Kendrick Lamar has announced that his next album release will be the last with his long-time record label, Top Dawg Entertainment (TDE).
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In