IFC, a member of the World Bank Group, announced a $60 million investment in Iluka Resources Sierra Rutile Limited to partner with the resources company as it expands its operations in Sierra Leone, where it is the largest tax payer, private employer, and foreign exchange earner, and a linchpin of the countrys mining sector.
IFCs equity investment will support Sierra Rutile Limiteds major expansion, which seeks to approximately double its rutile production in Sierra Leone from the current 150,000 tons per year and extend the life of its mine to at least 2035, providing local jobs and economic benefits for decades to come. Rutile is a mineral primarily used as a feedstock to produce whitening pigment for paints, plastics, and paper.
IFC will also work with Sierra Rutile Limited to increase its positive impact on local communities. A three-year advisory services agreement between IFC and Sierra Rutile will help the mining company implement a new community investment and engagement strategy, improve the transparency and use of community-managed mining revenues, and develop a women and youth social and economic empowerment program.
Ilukas Managing Director, Tom OLeary, said, Partnering with IFC will provide benefits to Iluka, IFC, and the people of Sierra Leone by promoting the continued, sustainable development of the Sierra Rutile operation. IFC has unparalleled expertise and experience in community and stakeholder engagement in developing countries, which will complement Sierra Rutiles own activities in these areas.
Lance Crist, IFCs Global Head of Equity, who attended the event, said IFCs investment in Sierra Rutile Limited highlights our long-term commitment to the private sector in countries recovering from conflict and has the potential to generate thousands of local jobs and millions in government revenues.
IFC will make an initial investment of $20 million to fund Sierra Rutile Limiteds existing operations and then a further $40 million to support its ambitious expansion plans, which must comply with IFCs Performance Standards. IFCs total $60 million investment will represent a 10 percent stake in the company.
The partnership with Iluka and Sierra Rutile Limited also demonstrates IFCs continued commitment to fragile states and those recovering from conflict. From 2008-2018 IFC invested $8 billion in fragile and conflict-affected situations (FCS) globally, of which $3 billion was invested in African FCS. IFC is a strong development partner helping Sierra Leone strengthen and grow its economy, providing both investments and advisory services. IFC also supports Sierra Leone through its Conflict Affected States in Africa Initiative (CASA), which is backed by Ireland, the Netherlands, and Norway.
Iluka, which owned 100 percent of Sierra Rutile Limited prior to IFCs investment, is an Australian-based international mineral sands company with over 60 years of experience in the sector. The Sierra Rutile mine currently employs more than 2,500 people.
IFCa sister organization of the World Bank and member of the World Bank Groupis the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.