Fri Dec 2, 2011
* First shipment on track for end of 2011
* Receives first prepayment from Glencore
LONDON Dec 2 (Reuters) - London Mining Plc said it has started production of iron ore from its Marampa operation in Sierra Leone and that the first shipment is on track to be completed by the end of this year.
Production will ramp up during the first half of 2012 to over 160,000 tonnes a month, with 1.8 million tonnes of production still targeted for 2012.
"The production of high specification iron ore product from our plant at Marampa after decades of mine inactivity marks the beginning of our Phase 1 ramp up and forms the basis for our phased expansions to 16 Mtpa (million tonnes per annum)," said Chief Executive Graeme Hossie.
The miner said it has received its first prepayment from Glencore for its scheduled December shipment and expects to receive a further prepayment for its January shipment later this month.
(sourced Reuters)
Showing posts with label London Mining. Show all posts
Showing posts with label London Mining. Show all posts
Friday, December 2, 2011
Thursday, October 6, 2011
London Mining CEO confident on Sierra Leone
Thu Oct 6, 2011
LONDON Oct 6 (Reuters) - Iron ore developer London Mining Plc said it is confident about operating successfully in Sierra Leone, amid growing global resource nationalism in the mining industry, because the country is keen to bring in foreign investment.
"The government are completely behind developing Sierra Leone's prosperity. They understand that Sierra Leone needs foreign capital to develop its industries, particularly the resource industries," Chief Executive Graeme Hossie told Reuters on Thursday.
London Mining, along with rival AIM-listed iron ore group African Minerals Ltd , both expect to ship their first iron ore from Sierra Leone this year.
The West African country is due to hold a presidential election next year, a decade after the end of a bloody 11-year civil war, in what will be seen as a bellwether of recovery.
"They want to show some examples of success and they want to attract capital into the oil exploration field because offshore oil has been found and that requires a huge amount of investment," said Hossie.
"They want to make sure they don't do anything that will scare off international investors."
(sourced Reuters)
LONDON Oct 6 (Reuters) - Iron ore developer London Mining Plc said it is confident about operating successfully in Sierra Leone, amid growing global resource nationalism in the mining industry, because the country is keen to bring in foreign investment.
"The government are completely behind developing Sierra Leone's prosperity. They understand that Sierra Leone needs foreign capital to develop its industries, particularly the resource industries," Chief Executive Graeme Hossie told Reuters on Thursday.
London Mining, along with rival AIM-listed iron ore group African Minerals Ltd , both expect to ship their first iron ore from Sierra Leone this year.
The West African country is due to hold a presidential election next year, a decade after the end of a bloody 11-year civil war, in what will be seen as a bellwether of recovery.
"They want to show some examples of success and they want to attract capital into the oil exploration field because offshore oil has been found and that requires a huge amount of investment," said Hossie.
"They want to make sure they don't do anything that will scare off international investors."
(sourced Reuters)
Saturday, August 13, 2011
Anglo Pacific looks to second half
August13,2011
By Martin Li, Investors chronicle
Disruption from flooding in the first quarter and a planned realignment of mining in the second quarter resulted in coking coal production from the Kestrel mine in Australia, which is Anglo Pacific's key royalty earner, falling by 39 per cent. However, coking coal prices in the six months increased from $220 (£135) per tonne last year to over $310, which offset the lower output.
After a solid performance in a challenging first half, the group is well placed to make progress in the second half, which will be boosted by the first royalties from the El Valle gold-copper mine in Spain. This entered production in June and increases the number of producing royalties in the group's portfolio to five. Reflecting its preference for steelmaking projects, Anglo Pacific has acquired a royalty over chromite deposits in Ontario, Canada, and one over the Isua iron ore project in Greenland being developed by London Mining.
Gains on the sale of investments totalled £7.5m in the six-month period, compared with £17.4m in the first half of last year. Investments are held primarily as a source of future royalties and are sold when the prospect of such royalties appears unlikely. Prior to these results, Liberum Capital was forecasting full-year EPS of 26.5p.
By Martin Li, Investors chronicle
Disruption from flooding in the first quarter and a planned realignment of mining in the second quarter resulted in coking coal production from the Kestrel mine in Australia, which is Anglo Pacific's key royalty earner, falling by 39 per cent. However, coking coal prices in the six months increased from $220 (£135) per tonne last year to over $310, which offset the lower output.
After a solid performance in a challenging first half, the group is well placed to make progress in the second half, which will be boosted by the first royalties from the El Valle gold-copper mine in Spain. This entered production in June and increases the number of producing royalties in the group's portfolio to five. Reflecting its preference for steelmaking projects, Anglo Pacific has acquired a royalty over chromite deposits in Ontario, Canada, and one over the Isua iron ore project in Greenland being developed by London Mining.
Gains on the sale of investments totalled £7.5m in the six-month period, compared with £17.4m in the first half of last year. Investments are held primarily as a source of future royalties and are sold when the prospect of such royalties appears unlikely. Prior to these results, Liberum Capital was forecasting full-year EPS of 26.5p.
Tuesday, February 22, 2011
London Mining aims to produce 15 million mt of iron ore per year at Isua, Greenland
Tuesday, 22 February 2011
On February 21, UK-based London Mining, a global diversified miner targeting the steel sector, announced the results of a 15 million mt per year scoping study for its Isua Project in Greenland completed by Quebec, Canada-based engineering and construction company SNC Lavalin.
The SNC Lavalin study of June 2010 considered a 10 million mt per year operation with a 21-year initial mine life and estimated capital expenditure of US$1.7 billion. The new scoping study considered a 15 million mt per year open pit and processing operation with a 15-year initial mine life for estimated capital expenditure of US$2 billion.
London Mining said that Isua's capital intensity has reduced, in the latest scoping study, by about 22 percent to US$136 per annual thousand metric tons of capacity. The company notes that the new scoping study includes higher operating costs than previous studies, mainly due to higher fuel costs. Operating costs are now expected to be US$29/mt - rather than US$27/mt.
Project to produce high quality pellets
Isua, which currently has a JORC resource of 951 million mt grading 36 percent iron, will produce a premium quality 70 percent Fe pellet feed concentrate with low impurities and benefits from its position in the warmer southwest corner of Greenland which allows for year round shipping. The project is located 150 km northeast of Nuuk and is wholly owned by London Mining Plc.
A full bankable feasibility study that will also include the latest scoping study will be completed by the end of 2011 with construction estimated to start in 2012 and first production at the beginning of 2015.
The SNC Lavalin study of June 2010 considered a 10 million mt per year operation with a 21-year initial mine life and estimated capital expenditure of US$1.7 billion. The new scoping study considered a 15 million mt per year open pit and processing operation with a 15-year initial mine life for estimated capital expenditure of US$2 billion.
London Mining said that Isua's capital intensity has reduced, in the latest scoping study, by about 22 percent to US$136 per annual thousand metric tons of capacity. The company notes that the new scoping study includes higher operating costs than previous studies, mainly due to higher fuel costs. Operating costs are now expected to be US$29/mt - rather than US$27/mt.
Project to produce high quality pellets
Isua, which currently has a JORC resource of 951 million mt grading 36 percent iron, will produce a premium quality 70 percent Fe pellet feed concentrate with low impurities and benefits from its position in the warmer southwest corner of Greenland which allows for year round shipping. The project is located 150 km northeast of Nuuk and is wholly owned by London Mining Plc.
A full bankable feasibility study that will also include the latest scoping study will be completed by the end of 2011 with construction estimated to start in 2012 and first production at the beginning of 2015.
Tags: iron ore , raw mat , Denmark , Greenland , UK , Europe , investments , mining , European Union (sourced:steelorbis)
Thursday, January 27, 2011
London Mining inks iron ore off take agreement with Glencore
Thursday, 27 Jan 2011
London Mining announced that it has signed an offtake agreement with the trading house Glencore International AG.
The offtake will cover 9.5 million WMT production from Phase 1A of the Company's Marampa project.
The five year agreement, which includes a pre-payment facility for up to USD 27 million, will provide guaranteed offtake and shipping from Sierra Leone for all Phase 1A production, with the option for London Mining to expand the agreement to Phase 1B on the same terms.
The offtake will be priced at around Platts 62% CFR China benchmark, with an upward adjustment for the Fe content of the Company's 65% Fe sinter feed concentrate and an incentive to place product at locations such as Europe where there is a net pricing benefit through lower shipping costs.
The offtake accommodates London Mining's ramp up expectations and is flexible to accommodate varying shipping sizes and frequencies to supply European, Chinese and other markets.
Mr Graeme Hossie CEO of London Mining said “This offtake agreement is an important development for the Marampa project. It provides London Mining with certainty of proceeds directly correlated to the benchmark CFR China price, positive working capital and provides an external validation of the high quality of our product. In addition, it gives us a reliable counterparty which will also provide shipping and agency services for us if we wish to supply particular steel industry clients from our next stage expanded production."
London Mining announced that it has signed an offtake agreement with the trading house Glencore International AG.
The offtake will cover 9.5 million WMT production from Phase 1A of the Company's Marampa project.
The five year agreement, which includes a pre-payment facility for up to USD 27 million, will provide guaranteed offtake and shipping from Sierra Leone for all Phase 1A production, with the option for London Mining to expand the agreement to Phase 1B on the same terms.
The offtake will be priced at around Platts 62% CFR China benchmark, with an upward adjustment for the Fe content of the Company's 65% Fe sinter feed concentrate and an incentive to place product at locations such as Europe where there is a net pricing benefit through lower shipping costs.
The offtake accommodates London Mining's ramp up expectations and is flexible to accommodate varying shipping sizes and frequencies to supply European, Chinese and other markets.
Mr Graeme Hossie CEO of London Mining said “This offtake agreement is an important development for the Marampa project. It provides London Mining with certainty of proceeds directly correlated to the benchmark CFR China price, positive working capital and provides an external validation of the high quality of our product. In addition, it gives us a reliable counterparty which will also provide shipping and agency services for us if we wish to supply particular steel industry clients from our next stage expanded production."
Tuesday, January 18, 2011
London Mining reports resource increase at Marampa
By: Petronel Smit, 17th January 2011
JOHANNESBURG (miningweekly.com) – The primary resource at London Mining’s Marampa iron-ore project, in Sierra Leone, had increased tenfold compared with the primary resource of 84-million tons grading 37% iron reported at the time of the company’s Aim listing in November 2009.
The miner on Monday reported that Snowden mining industry consultants estimated a total resource of 906-million tons grading 31,7% iron, comprising 379-million tons at 32% iron in the indicated category and 527-million tons at 32% iron in the inferred category.
This represented a 70% increase to the total primary resource of 533-million tons at 31% iron reported in November 2010.
CEO Graeme Hossie said that Marampa now has a resource base to support a long-term mining operation at 16-million tons a year with low capital intensity and simple logistics, allowing London Mining to become a major new entrant into the seaborne market during 2011.
The new resource also includes 24-million tons at 38% iron of highly weathered ore and 107-million tons at 35% iron of moderately weathered material, which could be considered for inclusion in the Phase 1 mine plan. A further 20 000 m of drilling was planned to upgrade inferred resources to the indicated category.
The miner expected to incorporate the new resources into a fully integrated mine plan for the Phase 1 and the Phase 2 expansion by the end of the first quarter of 2011, with the new weathered resources expected to substantially extend the life of Phase 1.
London Mining was applying a two-phase approach to the development of Marampa. Phase 1 considered the processing of tailings from previous operations and weathered ore to produce 3,6-million tons a year of high-grade concentrate for blast furnace sinter production.
Phase 2 was scoped for production of up to 16-million tons a year of blast furnace pellet feed from unweathered ore. The sinter concentrate and blast furnace pellet feed would both have an iron content of around 65% and no significant levels of impurities were expected.
Both products were expected to be readily marketable in the seaborne market.
Test work indicated that 100% of the highly weathered material and around 75% of the material considered moderately weathered could be processed in the Phase 1 processing circuit with the installation of additional milling capacity. The remaining moderately weathered material would be stockpiled for processing in Phase 2.
The current Phase 1 mine plan was based on the August 2010 resource estimate and considered a blend of tailings and weathered ore at a 70:30 ratio to produce run-of-mine ore with a head grade of 27% iron. It was expected that the new resources would allow for significant increases to mine life and capacity to be considered for both Phases 1 and 2.
As a result of the new resources, London Mining was in the process of relocating several components of its Phase 1 operation, such as site accommodation, tailings storage and drinking water supply, to allow all new resources to be included in an updated production plan.
It was expected that this would result in the delay of mechanical completion and commissioning from the end of the second quarter to the end of the third quarter, 2011, with the shipment of the first concentrate following within one month of first production.
The major long-lead item, the wet high-intensity magnetic separation plant, is now on site with the power generation sets expected on site during the first quarter of 2011.
JOHANNESBURG (miningweekly.com) – The primary resource at London Mining’s Marampa iron-ore project, in Sierra Leone, had increased tenfold compared with the primary resource of 84-million tons grading 37% iron reported at the time of the company’s Aim listing in November 2009.
The miner on Monday reported that Snowden mining industry consultants estimated a total resource of 906-million tons grading 31,7% iron, comprising 379-million tons at 32% iron in the indicated category and 527-million tons at 32% iron in the inferred category.
This represented a 70% increase to the total primary resource of 533-million tons at 31% iron reported in November 2010.
CEO Graeme Hossie said that Marampa now has a resource base to support a long-term mining operation at 16-million tons a year with low capital intensity and simple logistics, allowing London Mining to become a major new entrant into the seaborne market during 2011.
The new resource also includes 24-million tons at 38% iron of highly weathered ore and 107-million tons at 35% iron of moderately weathered material, which could be considered for inclusion in the Phase 1 mine plan. A further 20 000 m of drilling was planned to upgrade inferred resources to the indicated category.
The miner expected to incorporate the new resources into a fully integrated mine plan for the Phase 1 and the Phase 2 expansion by the end of the first quarter of 2011, with the new weathered resources expected to substantially extend the life of Phase 1.
London Mining was applying a two-phase approach to the development of Marampa. Phase 1 considered the processing of tailings from previous operations and weathered ore to produce 3,6-million tons a year of high-grade concentrate for blast furnace sinter production.
Phase 2 was scoped for production of up to 16-million tons a year of blast furnace pellet feed from unweathered ore. The sinter concentrate and blast furnace pellet feed would both have an iron content of around 65% and no significant levels of impurities were expected.
Both products were expected to be readily marketable in the seaborne market.
Test work indicated that 100% of the highly weathered material and around 75% of the material considered moderately weathered could be processed in the Phase 1 processing circuit with the installation of additional milling capacity. The remaining moderately weathered material would be stockpiled for processing in Phase 2.
The current Phase 1 mine plan was based on the August 2010 resource estimate and considered a blend of tailings and weathered ore at a 70:30 ratio to produce run-of-mine ore with a head grade of 27% iron. It was expected that the new resources would allow for significant increases to mine life and capacity to be considered for both Phases 1 and 2.
As a result of the new resources, London Mining was in the process of relocating several components of its Phase 1 operation, such as site accommodation, tailings storage and drinking water supply, to allow all new resources to be included in an updated production plan.
It was expected that this would result in the delay of mechanical completion and commissioning from the end of the second quarter to the end of the third quarter, 2011, with the shipment of the first concentrate following within one month of first production.
The major long-lead item, the wet high-intensity magnetic separation plant, is now on site with the power generation sets expected on site during the first quarter of 2011.
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