Sierra Rutile Limited and Ecobank have signed a USD 40 million senior secured loan facility, which will be critical to advancing the Sembehun expansion project in Sierra Leone. The agreement, signed on the second day of the 2026 Mining Indaba, is the first phase of a USD 70 million syndicated facility led by Ecobank Sierra Leone, with participation from Ecobank Ghana.
The funding is specifically designated to facilitate the acquisition and relocation of the Kwale Mineral Sands Processing Plant to the Sembehun site, a move Sierra Rutile claims will significantly alter the project’s economics. By repurposing an existing, high-quality processing plant instead of building new infrastructure from scratch, the company has reduced the estimated capital expenditure for Sembehun from USD 310 million to around USD 120 million, a 61% reduction. According to company executives, the move reduces development risks and speeds up the timeline for first production.
Sembehun has one of the world’s largest and highest-grade natural rutile deposits. Sierra Rutile anticipates that once the processing plant is relocated, Sembehun will produce approximately 175,000 tonnes of premium-grade natural rutile annually, extending the mine life by at least 14 years. Sierra Rutile is a leading global producer of natural rutile, a critical feedstock for high-tech manufacturing, pigments, and aerospace applications.
Sierra Rutile Holdings Limited’s Chairman, Mohamed Babatunde Cole, stated that the partnership with Ecobank is a validation of their vision for a 100% Sierra Leonean-owned global mining company, not just a financial transaction. Ecobank’s support allows Sierra Rutile to efficiently unlock the value of Sembehun, ensuring long-term sustainability and prosperity for the nation.
Ecobank Sierra Leone’s Managing Director, Sebastian Ashong-Katai, described the facility as a demonstration of their capacity to deploy “sophisticated, pan-African financial solutions” that support locally headquartered companies to compete internationally. “Sembehun is a globally significant asset, and we are committed to its success,” he said.
Government officials applauded the transaction as well. Sierra Leone’s Minister of Mines and Mineral Resources, Hon. Julius Daniel Mattai, described the agreement as a continental model of domestic partnership and capacity. “This collaboration between a leading African bank and a premier African miner demonstrates that we have the leadership, laws, and partnerships to drive transformation,” the minister stated, emphasising Sierra Leone’s stability and competitiveness as a mining jurisdiction.
The USD 40 million tranche is the first instalment of an overall USD 70 million facility that Ecobank intends to syndicate. Sierra Rutile and its partners claim that the financing structure, combined with the strategy to relocate the Kwale plant, significantly reduces Sembehun’s upfront capital barrier and operational risk, allowing the project to proceed more quickly and generate cash flow sooner.
Sierra Rutile’s use of existing processing infrastructure demonstrates cost-effective project delivery in the mining sector and highlights the importance of regional banking institutions in Africa’s large-scale resource development.
