London Mining said that the concentrate from its Marampa iron ore project in Sierra Leone may be sold into Europe because of its consistent high quality.
The miner said London started production at Marampa earlier this month and the plant continues to produce a concentrate with a specification of over 65% Fe and low impurities. The plant is expected to reach 24 hour production in the next few days ahead of a ramp-up to 160,000 tonnes per month in the first half of 2012.
London added it had rescheduled the first shipment from Marampa from the end of 2011 to January to utilise a larger ship and maximise the margin on the concentrate.
Mr Graeme Hossie chief executive said "We are encouraged by the high quality of concentrate being produced at Marampa. This secures premium pricing for Marampa product, will provide potential for sale into Europe and further supports our ambition of developing a globally significant mine in Sierra Leone.”
He said that “With ramp up of Phase 1 well underway, we are looking forward to expansion to 4Mtpa from Phase 1 and discussions around off-take for future production."
London added that mining licence agreement negotiations with the Sierra Leone government have been concluded and the President has agreed the final document which will be presented to cabinet for approval.
The new agreement is for a ten-year period and for development of Marampa to 16Mtpa production. The tax regime for the new agreement is in line with other developing mining companies in the country, London added. It will give more information once the agreement has been passed by the Sierra Leone parliament which it expects to be in the first quarter of 2012.
Elsewhere, London said the bankable feasibility study for Isua is nearing completion and is now expected to be completed in the first quarter of 2012. The start-up of the coke ovens in Colombia is still expected by year end with first production approximately one month afterwards and first shipment also by the end of March 2012.
(Sourced from www.proactiveinvestors.co.uk)
