Rio Spends $700 Million at Simandou Iron Ore Project

Mar 21, 2011 10:26 AM GMT+0530
By Elisabeth Behrmann

Rio Tinto Group, the world’s second-largest mining company, said it has spent $700 million to date at the Simandou iron ore project in Guinea.

“Our current plans for the mine, railway and port calls for the creation of tens of thousands of jobs during the construction phase and more than 4,000 full-time jobs once operational,” Tom Albanese, chief executive of the London-based company, also said today in e-mailed comments.

Rio is studying spending at least $6 billion in Guinea, where new President Alpha Conde has ordered a drafting policy giving the country at least a one-third stake in mining projects. The company said in July it had invested $650 million at Simandou and planned to begin mining within five years.

Rio is “very pleased” with the contribution that Aluminum Corp. of China Ltd. has made to the project, Albanese said. Rio has agreed to sell Chinalco, as the state-owned company is known, a 44.65 percent stake in Simandou. (sourced:bloomberg)

Shree Minerals moves a step closer to DSO iron ore production in 2011/12

Wed,Feb23, 2011 by Proactive Investors

Shree Minerals (ASX: SHH) has submitted the mining lease application for iron ore mining rights within the Nelson Bay River exploration licence EL41/2004 in North West Tasmania.

The application has been lodged after completion of studies relevant to the MLA were submitted to the Registrar of Mines, Mineral Resources Tasmania for 787 hectares on 22nd February 2011.

Shree Minerals managing director, Sanjay Loyalka said he is confident the mining application should be "favourably received" based on the work done by various consultants.

Production of Direct Shipping Iron Ore (DSO) is due to commence in the 2011-12 financial year based on key infrastructure in place in the region.

Key infrastructure such as a port and sealed roads are available within the mining area. There is also no lack of experienced mining contractors with the necessary mining equipment and resources readily available.

Scoping Study and Feasibility studies are underway with results due in the second to third quarter of 2011.

Shree is maintaining momentum necessary to achieve near term cash flows from DSO at Nelson Bay River.

Based on expected DSO material output from Nelson River of 400,000 tonnes per annum, and using a conservative Spot Iron Ore price of$137.50 CFR China for 62% Fe Fines, would produce a net cash flow of $13.5 million per annum from DSO production for Shree Minerals.

Sundance to build a railway line and port for Mbalam iron ore export venture

Sunday, 13 Feb 2011

Reuters reported that Australia's Sundance Resources wants Chinese companies to build a railway line and port in Cameroon vital to its Mbalam iron ore export venture.

Mr Giulio Casello MD at Sundance Resources said that the project is also expected to cost more than the USD 3.4 billion initially thought.

He said that agreements had been signed with China Rail and China Harbour to build 490 kilometers of rail line linking two mines in the Mbalam area to a port on the Cameroon coast capable of handling 35 million tonnes of ore a year for a decade.

He added that the initial capital costs were pegged at USD 3.4 billion but the figure was likely to increase due to the addition of the Nabeba mine in Congo Brazzaville.

The Nabeda mine would need 60 kilometers of railway line and a crushing and sorting facility, he said.

Mbalam, Sundance's main project, is among a handful of big iron ore developments in west and central Africa and is seen as a cornerstone of Cameroon's effort to diversify its largely oil dependent economy into mining.
(sourced:reuters)