Sierra Rutile Limited, now fully owned by Leone Oil Company, has announced plans to reduce its workforce as part of efforts to cut operating costs and stabilize the business amid rising administrative expenses, declining returns on investment, and broader global economic challenges.
The company became fully Sierra Leonean-owned in 2024 after Leone Oil Company acquired 100 percent ownership from former parent company, Iluka Resources.
On Tuesday, 19 May 2026, a delegation from the Ministry of Employment, Labour and Social Security, led by Deputy Minister Lansana Dumbuya, met with Sierra Rutile management and workers to discuss the proposed layoffs and ensure that the redundancy process complies with national labour laws.
Speaking during the meeting, Deputy Minister Dumbuya stated that the government’s role is to protect the interests of both workers and management while promoting dialogue between the two parties.
“Our purpose here is to engage directly with workers and prepare them for the possible outcome. We are not involved in the company’s finances, but we must ensure that any redundancy process is fair, lawful, and handled amicably,” he said.
He explained that global economic challenges have negatively affected commodity prices and reduced investment returns, forcing many companies to restructure their operations.
According to information submitted to the Ministry, Sierra Rutile had long anticipated the need to reduce costs. The company had previously considered downsizing its workforce from more than 2,000 employees to approximately 1,000. In 2024, 468 staff members were laid off, while the current exercise is expected to affect 213 general staff, 80 senior staff, and 46 management staff.
Deputy Minister Dumbuya acknowledged that although the government remains committed to job creation, prevailing economic realities sometimes necessitate difficult decisions.
“These companies are not charitable institutions. Investors expect returns, and when losses continue, restructuring becomes inevitable,” he stated, adding that the process would be guided by Section 82 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, provides the legal framework governing redundancy procedures.
He noted that Sierra Rutile had formally notified the Ministry as required by law, thereby triggering consultations with workers and other stakeholders to ensure transparency and compliance with labour standards.
“Redundancy is a recognised labour process under the law. Our role as a Ministry is to ensure that procedures are followed properly and that the rights and welfare of workers are protected,” Conteh said, while urging employees to remain calm and engage constructively throughout the discussions.
Secretary General of the Workers’ Union, Ahmed MK Josiah, welcomed the Ministry’s intervention but expressed concern that workers had not been 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, while also questioning whether the restructuring would result in improved conditions of service.
Several workers also raised concerns over reduced benefits and operational changes introduced since the new management assumed control of the company.
Responding to the concerns, Chief Executive Officer Lima Suffian Kargbo said the decision was based solely on the need to maintain the company’s financial viability.
He disclosed that Sierra Rutile spends approximately US$2.5 million monthly on fuel and US$1.8 million on logistics, including transportation and staff provisions, despite limited returns.
“We are not happy about this decision, but if we do not cut costs, the company risks collapse,” Kargbo stated.
He further explained that the planned restructuring would affect approximately 24 percent of general staff, 35 percent of senior staff, and 46 percent of management staff. The process is expected to be completed before the end of May, with operations set to resume on a reduced 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 leave voluntarily, labour officials emphasized that the final decision regarding affected staff rests with the company’s management.
Deputy Minister Dumbuya assured workers that the government would continue to serve as an impartial mediator to ensure the process is concluded peacefully, fairly, and respectfully.