The government of Sierra Leone has instructed ASX-listed Sierra Rutile to recommence mining activities in Area 1 by the end of the month.
Government views Sierra Rutile’s suspension of mining at Area 1 as a violation of the Mines and Minerals Development Act and has given the company until May 31 to address the situation.
In a statement on Monday, Sierra Rutile expressed disagreement with the government’s stance. The company said it was evaluating its position and its response to the directive.
Sierra Rutile and the government have been in negotiations since May 2023 regarding a new fiscal regime for Area 1 under a third amendment agreement. However, in January, Sierra Rutile issued a suspension notice after the government stated that the third amendment agreement would no longer apply to the company, reverting instead to the fiscal regime in place as at November 20, 2001. The miner argues that this change rendered any ongoing operations in Area 1 economically unviable.