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Iluka's Sierra Leone deal under cloud

AAP logoAAP 28/11/2016

Mineral sands miner Iluka Resources has put on ice its planned $375 million takeover of Sierra Leone miner Sierra Rutile Limited after detecting geotechnical risks at the West African company's tailings dams.

Iluka says it is consulting with SRL over the matter but, if the two companies cannot extend the deal deadline within five business days after the current November 30 deadline, either party may terminate the agreement and it will not close on November 29 as previously stated.

The major producer of zircon and rutile in August announced it would pay SRL's shareholders 36 pence ($A0.63) per share in the proposed merger.

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