PERTH (miningweekly.com) – ASX-listed Sierra Rutile on Thursday said that the company’s discussions with the government of Sierra Leone regarding the renegotiation of the terms of the Area 1 fiscal regime, as set out in the Third Amended Agreement, were still ongoing.
The company earlier this year flagged that the government of Sierra Leone was seeking to renegotiate the fiscal terms but said that any changes of the fiscal arrangements would require Sierra Rutile’s agreement.
Dialogue between the two parties started in the third quarter of this year.
The Third Amendment Agreement was central to Sierra Rutile continuing to operate at Area 1 prior to any development of its Sembehun project.
In its half-year results for the period ended June, the company told shareholders that uncertainty regarding continuation of the Third Amendment Agreement tax concessions applicable to Area 1 led to the decision to delay execution of the Mogbwemo Tails project and, combined with challenging market conditions, resulted in an impairment charge of A$28.8-million against Area 1 property, plant and equipment and intangible assets.