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Sierra Rutile Staff Newsletter 2

Staff newsletter produced for our client Sierra Rutile Ltd

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COMMUNITY AFFAIRS DEPARTMENT<br />

MARCH 2013<br />

SIERRA RUTILE<br />

INTERNAL NEWS<br />

MARCH 2013<br />

<strong>Sierra</strong> <strong>Rutile</strong> pays surface rent to mining communities<br />

<strong>Sierra</strong> <strong>Rutile</strong> has completed payment of surface rent to landowners,<br />

Paramount Chiefs, the District Council, Local Chiefdom Administration and<br />

towards Constituency Development, in all five mining chiefdoms. A total of<br />

Le 2,513,907,000 was paid.<br />

Presenting the cheques was Mr Abdul Ignosi Koroma, Deputy Minister of<br />

Mines and Minerals. He explained that last month’s delay in payment was<br />

to allow the Government time to introduce measures to meet the<br />

requirements of the Extractive Industries Transparency Initiative (EITI), and<br />

thanked the land owners for their patience.<br />

To ensure the transparency of the process, the payments were conducted in<br />

the presence of the media, and witnessed by several senior government<br />

ministers and the five Paramount Chiefs. Appearing on behalf of <strong>Sierra</strong><br />

<strong>Rutile</strong> were Operations Manager, Mr Desmond Williams, EHS Manager,<br />

Mr Ansumana Jabati and staff of the Community Affairs Department.<br />

SIERRA RUTILE’S ROAD REPAIRS HALF JOURNEY<br />

TIME FROM MOYAMBA JUNCTION TO MINE SITE<br />

Surface rent payments are a legal obligation under the Mines and<br />

Minerals Act.<br />

<strong>Sierra</strong> <strong>Rutile</strong> announces programme of Livelihood Restoration<br />

The Community Affairs Department has announced the launch of a<br />

programme of Livelihood Restoration to increase economic<br />

opportunities for young people and women.<br />

The project, which will be piloted in the Imperi Chiefdom and gradually<br />

extended to other Chiefdoms, was announced at this quarter’s Public<br />

Consultation and Disclosure Plan (PCDP) meetings.<br />

Held quarterly, the PCDP meetings are intended to share information<br />

with stakeholders and provide an opportunity for the communities to<br />

express their views and concerns. They are held in all five SRL mining<br />

chiefdoms.<br />

The drive from Moyamba Junction to <strong>Sierra</strong> <strong>Rutile</strong>’s mine site used to take three hours now it takes an hour and thirty minutes thanks to <strong>Sierra</strong><br />

<strong>Rutile</strong>’s recent programme of road repairs, which has transformed 82 kilometres of road.<br />

The roads leading to the mine site are vital to the mine’s ability to operate efficiently, but the passing of time, heavy trucks, and the wear and<br />

tear of the rainy season, had caused them to deteriorate substantially and they were often impassable in the rains. For a period of several<br />

weeks last year, all roads to the mine were blocked by vehicles which had become stuck in the mud, leaving lorries carrying equipment for the<br />

Lanti Dry Mining project stranded in Moyamba Junction.<br />

The newly repaired roads have almost halved the travel time to Freetown and substantially improved road safety. For <strong>Sierra</strong> <strong>Rutile</strong>, the road<br />

rehabilitation programme will boost productivity by allowing more efficient movement of materials, parts and equipment from Freetown to the<br />

mine. The social and economic life of the local community will also benefit from more frequent and efficient transport as well as safer journeys.<br />

The 17-man team that worked on the roads was led by Brian Wright, Darren Austin and Joseph Ngawojia from Mines Services. Their fleet of Cat<br />

road building machinery included excavators, articulated dump trucks, a couple of Dozers including the big D9, as well as a compactor, a water<br />

tanker and water pump for filling the tanker.<br />

They started work on December 12 and finished almost four months later on April 3. Roads were levelled and filled and then covered with a<br />

surface wearing course of laterite (compacted clay and gravel). Along the way, at the request of local communities, the team also levelled four<br />

football pitches, cleared land for 3 village schools and opened up tracks through the bush that had been blocked up years!<br />

GOOD OUTCOMES<br />

AND OUTCOMES<br />

THAT DO GOOD<br />

MESSAGE FROM ANDY TAYLOR, HEAD OF OPERATIONS<br />

This month the company publishes <strong>Sierra</strong> <strong>Rutile</strong>: the History – which traces the challenges that<br />

<strong>Sierra</strong> <strong>Rutile</strong> has overcome over the years, to become one of the world’s leading producers of<br />

“heavy minerals”. It is a story of teamwork, dedication, loyalty and determination which started in<br />

1967 and which still defines the company today.<br />

Last year, <strong>Sierra</strong> <strong>Rutile</strong>’s distinctive ethos of teamwork and dedication gave us our highest post-war<br />

production figures, brought the Lanti Dry Mining project to completion and saw us win the<br />

Alternative Investment Market award for International Company of the Year, as well as the award<br />

for industry from the <strong>Sierra</strong> Leone Chamber of Commerce.<br />

But at <strong>Sierra</strong> <strong>Rutile</strong>, we don’t define our success solely by production figures and engineering<br />

triumphs, essential though these things are. The good relationship that we have with the<br />

surrounding community is also vitally important to us.<br />

We have a relationship of mutual trust and respect that is partly generated by our rigorous commitment to meeting our financial and environmental<br />

obligations, and this month we were delighted to be able to proceed with the payment of surface rent to the landowners in the five mining chiefdoms.<br />

But our relationship with the people of this area extends beyond simply meeting our obligations. We also make a wider socio-economic contribution to the<br />

area through the employment of people from the local community and by supporting community development projects through the <strong>Sierra</strong> <strong>Rutile</strong><br />

Foundation.<br />

The benefits of our good relationship with the community are reciprocal. The contribution that their support, their trust, and their willingness to listen and<br />

engage with us makes to our operational success cannot be underestimated.<br />

It takes more than money to truly become part of a community and it is often in the actions that don’t appear in official reports that we show how much we<br />

consider ourselves to be the friends and neighbours of the community in which we work. Recently, when the village of Mocharles was devastated by fire,<br />

the Community Affairs Team rallied their colleagues at <strong>Sierra</strong> <strong>Rutile</strong> to come to its aid. They collected Le21,820,000, used clothing, food and blankets worth<br />

Le20,000,000. Similarly the road repair team took the time, while repairing 82km of badly damaged roads, to heed requests to clear land for football<br />

pitches and village schools.<br />

Working for a better <strong>Sierra</strong> Leone<br />

Last month, the International Council on Mining and Metals (ICMM)<br />

published its annual report. In it the CEO of a member company is quoted as<br />

saying: “If a company distances itself from the community and the<br />

environment, it is not fulfilling its purpose. What we want to do is grow,<br />

achieving good outcomes and, more than that, outcomes that do good.”<br />

That is an ambition that we share at <strong>Sierra</strong> <strong>Rutile</strong>.<br />

Working for a better <strong>Sierra</strong> Leone<br />

SAFETY SCORE BOARD AS AT 5th April 2013<br />

FREE DAYS 136<br />

TARGET 300<br />

PREVIOUS LOSS TIME INJURY (LTI) RECORD 205<br />

FATAL INCIDENT FREE DAYS 1716


MARCH 2013<br />

2013 Q1 RUTILE PRODUCTION VERSUS TARGETS -<br />

THRESHOLD, BUDGET AND STRETCH<br />

SAFETY BITS<br />

30,000<br />

30,254<br />

Driving Safety – Part One<br />

RUTILE, MT<br />

25,000<br />

20,000<br />

15,000<br />

10,000<br />

5,000<br />

27,412<br />

26,088<br />

25,086<br />

7,398<br />

8,386<br />

8,812<br />

9,725<br />

8,209<br />

7,728<br />

8,120<br />

8,961<br />

9,480<br />

9,975<br />

11,567<br />

10,480<br />

Vehicle accident rates are currently causing concern to SRL<br />

Management. Steps must be taken to eliminate or reduce them to the<br />

barest minimum. The eight driving rules below are key to safe driving,<br />

and will be discussed in detail here and in subsequent publications.<br />

1. Alertness and fatigue<br />

2. Drugs and alcohol<br />

3. Seatbelts<br />

4. Passengers<br />

5. Loads<br />

6. Respecting road rules and road signs<br />

7. Mobile phones and two-way communication devices<br />

8. High visibility – drivers and vehicles<br />

Advice on Staying Alert and Preventing Fatigue<br />

• Drivers should only operate a vehicle when they are rested and alert<br />

• The EHS department and Head Driver should inform drivers on how to<br />

identify driver fatigue and alertness problems and means of<br />

addressing them<br />

• They should ensure that reward mechanisms do not incentivize drivers<br />

to drive excessive hours, which could lead to driving while tired or<br />

fatigued.<br />

REMEMBER: Drive as if every child on the road is your own<br />

0<br />

Q1 Totals Jan Feb Mar<br />

Actual Threshold Budget Stretch<br />

In March we produced 9,480 Mt of <strong>Rutile</strong> which was below the budget. SGR product quality for the month was above target at 95.37%<br />

TiO2. For Q1 <strong>Rutile</strong> production was 25,086 Mt which is below the threshold, target and stretch.<br />

MOVING TO<br />

THE FUTURE<br />

On March 12, <strong>Sierra</strong> <strong>Rutile</strong> installed a Laboratory Information Management System (LIMS). Alusine Samura, Chief Chemist, explains why it is like having<br />

another chemist in the lab.<br />

Q. What is a Laboratory Information Management System (LIMS)?<br />

A. LIMS have been around since the early 1980’s. In layman’s terms, LIMS is a software system used to manage information and data in laboratories.<br />

Q. How does it work?<br />

A. It is a computer programme that watches all the processes that take place in the lab, and helps everyone that works there. It stores important<br />

information within a database, and performs operations such as calculations and reporting. All our lab instruments interface with a PC which runs the LIMS<br />

software, so data is captured directly.<br />

All five lab processing phases are covered - the receipt and logging in of samples; assignment, scheduling, and tracking of the sample and the associated<br />

analysis; processing and quality control; storing the data; and finally the inspection, approval and reporting of results.<br />

Q. How does the LIMS improve the work of the lab?<br />

A. There is pressure on the lab to improve sample turnaround and data quality. LIMS helps increase productivity by saving time and minimising mistakes.<br />

It also uses an electronic signature system, which allows us to ensure accountability. Furthermore only users with the relevant permission can access or<br />

change data, which helps security and data integrity. Finally LIMS centralises all our information in one database to allow greater flexibility in data analysis.<br />

SIERRA RUTILE BRINGS NEW CHIEF MARKETING OFFICER ON BOARD<br />

Derek Folmer, <strong>Sierra</strong> <strong>Rutile</strong>’s recently appointed Chief Marketing Officer officially starts his new job on April 15 and will be responsible for managing all<br />

aspects of <strong>Sierra</strong> <strong>Rutile</strong>’s sales and marketing activities.<br />

Mr Folmer joins <strong>Sierra</strong> <strong>Rutile</strong> from Rio Tinto, where he held the position of General Manager – <strong>Rutile</strong> & Zircon, responsible for global sales of rutile and<br />

zircon produced by Richards Bay Mining and QIT Madagascar Minerals. Prior to this he held various sales and marketing management positions within Rio<br />

Tinto focussing on titanium dioxide feedstocks. Mr Folmer has a strong track record of developing and implementing global marketing strategies and has<br />

substantial experience and knowledge of key markets in North America, Europe and Asia, particularly in China.<br />

<strong>Sierra</strong> <strong>Rutile</strong> staff contributed used clothing, Le 21,820,000 and food items and blankets worth Le 20,000,000 to the victims of the<br />

Mocharles blaze. It was all handed over to the villagers on 5 April 2013.<br />

Congratulations to the JADA Technical Institute, which is sponsored by the <strong>Sierra</strong> <strong>Rutile</strong> Foundation. The first cohort of students to study<br />

for the Certificate in Business Studies, has received their results. Twenty-nine out of 34 students passed the exams, with four achieving<br />

a credit.<br />

Working for a better <strong>Sierra</strong> Leone

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