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Sierra Rutile Moves to Cut down Workforce Amid Rising administrative Costs and Low Rate of Returns

Sierra Rutile, 19 May,2026—
Sierra Rutile Limited currently owned by Leone Oil Company has announced plans to implement a workforce reduction. As part of realigning the company's current economic status, a redundancy exercise is possible as part of efforts to reduce operational costs and stabilize the company amid declining returns on investment and rising global economic pressures.

It is worth recalling that in 2024, Leone Oil Company acquired 100 percent ownership of Sierra Rutile from its former owner, Iluka Resources, thereby making the company fully Sierra Leonean-owned.

A delegation from the Ministry of Employment, Labour and Social Security, led by Deputy Minister Lansana Dumbuya, on Tuesday, 19th May 2026, engaged management and workers of Sierra Rutile to discuss the proposed layoffs and ensure compliance with labour laws.

Speaking during the meeting, the Deputy Minister clarified that the government’s presence was aimed at safeguarding the interests of workers and management while facilitating dialogue between both parties.

“Our purpose here is to engage directly with workers and prepare minds for the eventuality. We are not part of the company’s finances, but we must ensure that any redundancy process is fair, lawful, and conducted amicably,” he said.

Hon. Dumbuya noted that global economic challenges have significantly affected commodity prices and investment returns, forcing companies worldwide to realign and restructure operations.

According to information submitted to the Ministry, Sierra Rutile had long anticipated the need to reduce costs. The company previously planned to cut its workforce from over 2,000 employees to about 1,000. In 2024, 468 staff were laid off, and the current exercise is expected to affect:

* 213 general staff
* 80 senior staff
* 46 management staff

The Deputy Minister emphasized that while the government remains committed to job creation, economic realities sometimes compel difficult decisions.

“These companies are not charitable institutions. Investors expect returns, and when losses persist, realigning and restructuring becomes inevitable,” he added, assuring workers that the redundancy process would follow Section 82 provisions of the Employment Act 2023 and the Mining Collective Bargaining Agreement, Gazette.
Deputy Director of Labour and Employment, Abdulai Conteh, explained that Section 82 of the Employment Act, 2023, together with Article 27 of the Mining Collective Bargaining Agreement Gazette, 2025, clearly provides the framework governing redundancy procedures.

He noted that management had duly notified the Ministry in accordance with the law, thereby triggering mandatory engagement with workers and relevant stakeholders to ensure transparency and compliance with established labour standards.

“Redundancy is a recognised labour process under the law. Our role as a Ministry is to ensure that all procedures are properly followed and that the rights and welfare of workers are adequately safeguarded,” Conteh stated, while appealing for calm and constructive dialogue among employees as consultations continue.

Secretary General of the Workers’ Union, Ahmed MK Josiah, welcomed the Ministry’s intervention but expressed disappointment that workers were not informed earlier.

“Redundancy has happened before in 2017 and 2024. While we understand the situation, earlier communication would have helped workers prepare better,” he said, questioning whether improved conditions of service would follow the restructuring.

Other Workers also raised concerns about reductions in staff benefits and operational changes introduced after new management assumed control.

Responding to workers’ concerns, Chief Executive Officer Lima Suffian Kargbo said the redundancy decision was driven purely by financial sustainability.
He revealed that the company spends approximately $2.5 million monthly on fuel and about $1.8 million on logistics, including transportation and staff provisions, despite limited returns on investment.

“We are not happy about this decision, but if we do not cut down costs, the company risks collapse,” Kargbo said.

He added that workforce reductions would affect approximately 24% of general staff, 35% of senior staff, and 46% of management, with implementation expected before the end of May to allow operations to resume on a new scale in June.

The meeting concluded with assurances from the Ministry that all affected workers would receive their full redundancy benefits in accordance with the law.
While some employees expressed willingness to voluntarily exit, labour officials clarified that final decisions on affected staff remain the prerogative of management.

Deputy Minister Dumbuya reassured workers that the government would continue to act as an impartial mediator to ensure the process ends peacefully and respectfully.

ELECTRICITY DISTRIBUTION AND SUPPLY AUTHORITY (EDSA)

PUBLIC NOTICE

16th May, 2026

SCHEDULED POWER OUTAGE IN BO AND KENEMA

The public is hereby informed that TRANSCO-CLSG/CIE will carry out scheduled maintenance on the 225/33 kV, 40 MVA transformer at the Tiloma Substation.

As a result, electricity supply to Bo and Kenema from the CLSG transmission line will be temporarily interrupted as of Sunday, 17th May 2026, 7:00 AM – 5:00 PM.

During this outage period, Bo and Kenema will not receive electricity supply from the CLSG transmission line.

Power restoration will commence immediately after the maintenance works at approximately 5:00 PM. Any changes to this schedule will be communicated promptly.

We sincerely apologize for any inconvenience this temporary interruption may cause and appreciate your patience and understanding as we carry out essential maintenance to improve service reliability.

By Management
Electricity Distribution and Supply Authority (EDSA)