Moly Mines Ltd expects to produce 820,000 tonnes of iron ore in 2011 and has resumed talks with China based Hanlong Group and a bank syndicate for a loan, sending its shares up 11%.

Moly Mines began commercial production at its Spinifex Ridge project in Western Australia in November and said the production rate at the mine is seen to touch 1 million tonnes a year in the second quarter.

The miner said it has resumed talks with Hanlong Group, its controlling shareholder and a banking syndicate for a USD 466 million project finance loan.

The company said Hanlong was working to get a commitment from China Export and Import Bank to match the one it secured from China Development Bank in January for USD 250 million.

(Sourced from Reuters)