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Wednesday, July 13, 2011

ArcelorMittal to shortly begin iron production in Liberia

Wednesday, 13 Jul 2011

It is reported that ArcelorMittal Steel has completed product shipment test at the Buchanan Port and is to shortly begin iron production in Liberia at the Tokadeh mine near Yekepa in Nimba County.

An ArcelorMittal statement said over the weekend that "This is the result of five years' work to restart the country’s iron ore production and will contribute to the rebuilding of the nation’s economy after two decades of instability."

The statement said the mining conglomerate’s work in Liberia is a series of firsts. "As our first Greenfield mining project, investing to rebuild Liberia’s iron ore industry is an important project for ArcelorMittal. ArcelorMittal's purpose and vision to transform tomorrow through a shared boldness of spirit and our values of sustainability, quality, and leadership are evident in our work in Liberia."

It said that ArcelorMittal is committed to strengthening Liberia's mining industry and transport system, that it was also committed to an investment to rebuild the country's social and community infrastructure for the long term.

ArcelorMittal said that "Besides starting our operations at the Tokadeh mine, the USD 800 million investment in the first phase of the project has involved rehabilitating the rail link and port."

The ArcelorMittal statement said the company has already rebuilt the township and the industrial and social infrastructure in and around the towns of Yekepa and Buchanan as well as constructing a new crushing and screening plant.

The statement noted that "In June 2011, ArcelorMittal has been testing and commissioning the entire Liberia operations in order to identify and resolve any production related teething problems. The test included trial port operations and test vessel loading. The ore, mined from Tokadeh near Yekepa in the Nimba mountain range, was transported by train along a 240 kilometers rebuilt railway line, to the rehabilitated port of Buchanan. Unloading and stocking of the ore was completed successfully. The first test product was designed to capture maximum ore utilization which included a fines fraction in the DSO product. However, the finer nature of the test ore proved difficult to handle in the extreme wet season conditions."

The statement noted further that for safety reasons, there were strict moisture limits for ore cargo at sea and that technicians of the company believed that the test ore size range may present unsafe shipping conditions.

The statement said that "As a result the test loaded material was discharged. We are currently increasing the coarseness of the ore by changing screens in our mine crushing plant in order to improve handling characteristics and ship ability. Further to analysis by the mining management team, a slightly coarser product size will resolve the moisture issues and ensure safe ocean carriage, especially during wet season conditions. This change of screens and resultant product sizing is expected to be completed in July 2011."

Mr Peter Kukielski of ArcelorMittal said that "We are currently testing and commissioning the entire Liberia operations. Liberia has experienced unusually high rainfall over the last few weeks and this has meant that the moisture level in the iron ore is high. We are making good progress in addressing this issue and are on track to export iron ore as scheduled during the third quarter of the year, the first export from Liberia in over twenty years."

The government of Liberia and ArcelorMittal signed a USD 900 million Mineral Development Management Agreement in 2005 under the National Transitional Government of Liberia to run the Yekepa mines in Nimba County. The agreement was renegotiated in 2006 with the Sirleaf Administration to provide for more company responsibility to employees and social contribution to inhabitants of operation areas. (sourced from AllAfrica)

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