Operations at SRL

Sahr Wonday, Deputy General Manager

Sierra Rutile Limited
Agenda

Project history and description

Strategies and priorities
Safety
Expansion projects
Plan and targets for 2008

2
Project history and description
Project history
1967 – Sherbro Minerals started mining; closed 1971
1979 – Restarted by SRL (Bethlehem Steel, Nord)
1995 – Rebel war – operations closed Jan 19, 1995
1998 – Jean Raymond Boulle
2004 – EU financing
2005 – Start rehabilitation
2006 – Start production, start expansion projects
2007 – Build production, continue expansion projects

4
Description of operation
● SRL currently operates two 0.68 m3 bucket line dredges each capable of mining
close to 8 million tonnes of ore annually
● Dredge D1 operates in Lanti North with separate wet plant joined to the Dredge
by a 610 mm diameter pipeline. Scrubbing and screening on the dredge followed
by desliming in the Wet Plant produces a sand fraction (-1mm + 63μ) that goes
through a 3 stage upgrading process on spirals to produce a concentrate stock
piled on shore containing about 70% heavy minerals
● The new Solondo Dredge (Dredge D2) operates in Gangama and differs from
Dredge D1 by having the scrubbing, screening, cycloning and processing
sections on the same deck of pontoons thereby eliminating the connecting 610
mm diameter pipeline at Dredge D1. Solondo however uses trommel screens
and high pressure spray water instead of a scrubber like D1 to separate the clay
from the sand and oversize material
● Front End Loader and 30-tonne dump trucks are used to move the wet plant
concentrate from both dredges to the Feed Preparation Plant (FPP) some 14km
away in the case of Lanti and slightly less for Gangama

5
Description of operation, 2
● Feed preparation for dry processing involves surface cleaning of dirty or stained
grains in attrition scrubbers, further gravity concentration on spirals from 70% to
96% HM, and removal of iron sulphides in a sulphide flotation circuit
● In the Dry Plant, high tension rolls separate rutile and ilmenite (conductors) from
zircon and quartz (non-conductors). Induced roll magnets separate the rutile
from ilmenite followed by cleaning of the non-magnetics on electrostatic plate
separators to produce finished rutile product containing 95 to 96% TiO2. SRL
ilmenite typically contains around 60% TiO2
● The screening circuit at the end of dry processing separates the fine rutile (IGR)
from the standard grade rutile (SGR)

6
Description of operation, 3
● Rutile and ilmenite products are initially stored in silos at the plant site before
transportation in enclosed hopper trucks to Nitti port, 16 km west of the plant
site. Storage capacity at plant site is 2,250 tonnes for rutile (SGR) and 750
tonnes for ilmenite. Apart from a 50 tonnes silo, IGR is stored mainly in 1 and 2-
tonne bags
● Storage capacity at Nitti port for rutile is 5,000 tonnes and for ilmenite is 12,000
tonnes. This excludes the six covered coastal type barges (total capacity 10,800
tonnes) that are used for transferring material from Nitti to the Ocean going bulk
carriers anchored in protected waters of the Sherbro River estuary

7
D1 – Digging in Lanti

8
Solondo (Dredge D2) at start of mining path

9
Strategies and priorities
Progress to date
2006
Production capacity of 100,000 tonnes
● Commence D2 construction
● Place orders for HFO generators
● Commence planning for land plants
upgrade
11
2007
Production capacity of 200,000 tonnes
● Dredge D2 completed
● Power house 2 construction commenced
● Land plant upgrade well advanced
● Identified last major items of equipment
requiring replacement / refurbishment
and planned for 2008
On-going strategies and priorities
● Improve Solondo availability and achieve design digging rate and process
recovery
● Supplement production from dredges by re-processing of FPP tails. This has
potential to produce about 1,000 tonnes of rutile each month
● Equip all plants with appropriate instrumentation to improve efficiency and
facilitate close monitoring of key production and cost parameters
● Optimisation of plant metallurgical performance
● Training of supervisors and process operators
● Upgrading of marine fleet
● Complete feasibility of dry mining scheme and mobile concentrator to
supplement production from the dredges

12
Safety
EH&S philosophy and strategy

● No job or task is too important that it cannot be done safely and in an

environmentally friendly way
● Focus on utilizing best practice and minimizing negative environmental,
health and safety effects from our operations in a cost effective manner

14
Safety performance

2008*
Units 2006 2007 (Up to March)

Fatalities Number of 0 2 0*

Total Recordable Injury

Per million hours worked 2.8 6.2 9.1*
Frequency Rate (TRIFR)

Lost Time Injury

Per million hours worked 1.6 4.7 4.8*
Frequency Rate (LTIFR)

Occupational Diseases Number of 0 0 0*

15
16
10
15
20
25

0
5
Jan, 06

Mar, 06

May, 06

Jul, 06

Sept, 06

Nov, 06

Jan, 07

Mar, 07

May, 07

Jul, 07
LTIFR January 2006 to March 2008

Sept, 07

Nov, 07

Jan, 08

Mar, 08
EH&S initiatives
● Vigorous and aggressive workplace monitoring and risk assessments
● Job Safety Analysis on all critical tasks
● Monthly EH&S training across all levels of employees
● Monthly Senior Management Workplace Tours
● Monthly EH&S representative meetings
● Monthly EH&S theme boldly displayed on site
● In depth investigations of all LTIs
● Communication of all LTIs to management within 24hrs of occurrence

17
2008 targets
● No fatalities
● Reduce LTIR < 4.0 month on month basis
● 2008 LTIR<5.0
● Conduct at least one workplace inspection each week
● Conduct one EH&S Training each week
● Complete JSA on all critical jobs by Oct, 2008

18 18
Expansion projects

19
Power house 2
● Capacity is 30 MW (4 of 7.5 MW caterpillar generators)
● This will provide enough power to support existing and expanded operations
including D3
● Will replace existing Power House
● Current estimated capital cost is $29 million and completion date is end of
September 2008
● Savings in power generation costs when Power House 2 comes on stream is $1
million a month

20
Power house 2- engine foundation

21
Power house 2 – fuel tanks

22
Dredge D3
● Dredge D3 will be similar to Solondo but with smaller 0.34 m3 buckets and
capable of mining in excess of 4 million tonnes of ore annually
● Dredge D3 will mine the Mogbwemo tails deposited by Dredge D1 between 1979
and 1985. Up to that time, Dredge D1 used the less efficient Reichert Cones
instead of spirals for gravity concentration. Proven tails reserves amount to 18
million tonnes with an average grade of 0.94% RR
● Dredge D3 will add up to 40,000 TPA to rutile production capacity
● Dredge D3 project is similar to D2 with erection of super structure from second
hand dredge purchased in Malaysia on new pontoon. Process equipment
including screens, cyclones, and spirals will also be similar. Current provisional
capital cost is $22.5 million

23
Land Plants Upgrade (LPU)
● The LPU Project will increase Land Plants rutile and ilmenite production
capacities to 300,000 and 100,000 tonnes respectively. This will cope with D1,
Solondo and D3 production as well as Dry Mining
● With improved feed preparation section and modern processing equipment
treating the finer size range, Land Plants recovery will improve significantly
● Up to date dust collection system in the new circuit treating the finest sizes will
create a healthier working environment
● Projected capital cost is $16 million and scheduled for completion in September
2008
● Feed preparation upgrade has been completed and is in use increasing capacity
from 45/50 TPH to 100 TPH

24
Modified FPP feed station hopper

25
New floatex installed as part of LPU

26
LPU – new spiral installation in FPP

27
LPU – construction in progress

28
Rutile storage dome
● The new 12,000-tonne Rutile
storage dome at Nitti is scheduled
for completion at the end of June
this year. This is consistent with
expanded Land Plants capacity

29
Dry mining and mobile concentrator
● Feasibility study in progress in connection with construction of 400 to
500 tph mobile concentrator to treat dry mined ore from discrete small
high grade deposits in the mining concession that are not amendable to
large scale dredging operation
● Potential to add up to 40,000 TPA to rutile production capacity

30
Plan and targets for 2008
2008 plan
● Commissioned Solondo (1st Quarter)
● Commission Land Plants Upgrade (3rd Quarter)
● Commission Power House 2 (3rd Quarter)
● Complete upgrade of D1 and Land Plants
● Commence refurbishment of push boats and barges
● Replace haulage fleet
● Upgrade mineral separation section of laboratory

32
2008 issues
● Training of workforce
● Improve safety performance
● Strengthen mine planning capability
● Dry mining feasibility and implementation plan
● Produce five and ten-year long range mine plans
● Plan strategy for move to northern areas

33
2008 summary

Challenging year ahead; plan to tackle all these issues:

● Commissioning three projects
● Commission Power House 2
● Major training needs
● High demand for capital

34