London Mining in talks over tying up on Marampa project
Saturday, 07 Nov 2009
Bloomberg reported that London Mining Plc held talks with Chinese commodity trading companies Sinosteel Corporation and China Minmetals Corporation over tying up on the company's Marampa project in Sierra Leone.
Mr Graeme Hossie CEO of London Mining said that "We're having these discussions now. I'm confident they will lead to potential cooperation which could include investments to accelerate production or a JV."
London Mining, which has begun work developing the project and expects annual production of 1.5 million tonnes in 2011, is also talking with China National Railways.
The UK miner, which last year made a USD 664 million profit selling its Brazilian unit to ArcelorMittal, will more than double output at Marampa from 2013. The company in August ended a dispute with African Minerals Limited over mining rights at the project.
Mr Hossie said that the USD 85 million cost of the mine's first phase will be funded from London Mining's USD 230 million of cash reserves. The company and US partner Wits Basin Precious Minerals Inc also plan to expand the Xiaonanshan mine in China by buying two adjacent deposits, Guqiao and Sanbanqiao. Xiaonanshan produces 400,000 tons a year.
London Mining and Wits aim to sell shares of their joint venture in an initial public offering in Hong Kong to raise funds for the expansion. The companies hired ABN Amro Holding NV to work on the IPO.
