Just posted this on the ILU thread, after bit more thought I...

Just posted this on the ILU thread, after bit more thought I think this is more sabre rattling than high risk of SR's rutile production leaving the market. Only time will tell...

This is part of a long running battle to extract themselves from being the white owned milk cow for workers and a typically corrupt African government imo. Virtually given away 10% of SR to the World Bank IFC corp recently and is actively looking for third party investors to to JV into the Sembehun development to further reduce exposure and risk. Investing into African projects is easy, just cut a check, extracting value without being screwed by poor productivity, corruption and community issues is the tough bit.

Before people get carried away thinking 120-150kt is about to be removed from rutile supply, keep in this is a 6 month 'shot over the bow' to the SL government and workers. Lot of time for the threat of closure to re-shape third party attitudes towards the mine and re-align them with a more reasonable productivity etc.


Odds of SR closing permanently for rehab very low imo, long-term SR would have the mines taken away and re-issued to other parties prepared to keep the critical jobs and export income ticking over. Same reason I expect Sembehun to be developed sooner than later with or without Iluka's involvement. Bit to run with this story, though I expect Iluka will leave it until the last minute to agree continuation of operations.