Working for a better Sierra Leone The Sierra Rutile REVIEW MAY 2014 Culture is the starting point for the long-term stability, success and strength of any organisation and Sierra Rutile's culture of team work, loyalty and determination to deliver, proves time and time again to be at the core of its performance. This, allied with a focus on productivity and cost-optimisation, has seen us deliver creditable financial results for the year ended 31 December 2013, and accomplish our goals, despite the challenges of a softer mineral sands market. Critical to our continued success is the development of our people, the management of their career paths and succession planning. To this end, we continue to invest in enhancing organisational performance through the development of our Sierra Leonean employees, with a particular emphasis on our recently implemented Localisation Plan. The Localisation Plan is the process through which we identify high potential Sierra Leonean men and women (HIPOs) within Sierra Rutile and ensure they receive the training, development, work experience and mentoring necessary to accelerate their progress to the top of the organisation. It enables us to safeguard the future of Sierra Rutile’s leadership and meet our obligations under the Local Content Policy. It also allows us to contribute to the professional, technical and managerial pool within Sierra Leone, and share our prosperity through job creation and capability building. Our focus on building a sustainable organisation is driven by our commitment to make a real difference to the people of Sierra Leone. Within the communities in our area of operations, this has resulted in a steady and visible improvement in social services, infrastructure and sustainability. Our local communities are important stakeholders and it is critical that a better Sierra Rutile results in better lives for them, and as we move forward we look forward to building on our existing achievements in the areas of education, women’s economic empowerment and public health. John Bonoh Sisay CEO, Sierra Rutile Ltd OVER THREE MILLION DOLLARS IN SURFACE RENT SINCE 2009 In the years from 2009 to 2014, Sierra Rutile has paid a total of USD 3,369,076 (three million, three hundred and sixty-nine thousand and seventy-six dollars) in Surface Rent to the five chiefdoms – Imperi, Jong, Lower Banta, Upper Banta and Bagruwa - within its operational areas. Of this amount 50% or USD 1,684,538 (one million, six hundred and eighty-four thousand, five hundred and thirty-eight dollars) has gone to the land owners, 15% of the total to the Paramount Chiefs, 10% to the Chiefdom Administration, 15% to the District Councils and 10% or USD 336,907 (three hundred and thirty-six thousand, nine hundred and seven dollars) to the Constituency Development Fund. The Constituency Development Fund is administered directly by the MPs representing the Chiefdoms and is to be used for the benefit of the constituency. This year’s (2014) Surface Rent totals Le2,617,365,000 (two billion, six hundred and seventeen million, three hundred and sixty-five thousand Leones), which is over USD 605,000. It was paid in March and witnessed by the Paramount Chiefs of all five chiefdoms, government representatives, community representatives and members of the media. Speaking on behalf of the Government was Deputy Minister of Local Government and Rural Development, Ibrahim H. Kalokoh, who said: “The Government commends Sierra Rutile for its constructive relationship with the mining communities and for the early payment of the Surface Rent, which is a testament to its commitment to community development in its area of operations.” Sierra Rutile makes a range of annual payments to the Government including the annual lease and license agreement, as well as royalty payments from sales. The Agricultural Development Fund is another of the company’s financial commitments, and since 2007 it has paid 9,000 into the Fund, as well as making annual payments towards the Sierra Rutile Foundation on behalf of the mining communities.