London Mining
Iron ore Overview
London Mining has total iron ore resources of 2.2 billion tonnes with targeted production of over Tampa of high grade concentrates planned from its projects in Sierra Leone, Greenland and Saudi Arabia. Our strategy is to provide a viable alternative to the diversified miners and upstream integration by selecting assets with unique competitive advantages and high margin potential in countries with a national interest in mining.
For example:Marampa (Sierra Leone) has a short lead time to production and is located in a region of significant geological existentialism (Greenland) will produce a high quality magnetite concentrate Wadi Saginaw (Saudi Arabia) benefits from a low energy costs and a significant supply gap in the Middle East and North Africa region
Sierra Leone
The Marampa mine is located 125km by road north-east of Freetown and 40km by dedicated haul road from tidewater at the Thofeyim river terminal.The Marampa deposit was first discovered in 1926 and open pit production was commenced by the Sierra Leone Development Company (“Delco”) and William Baird between 1933 and 1975. By the 1960’s iron ore production had reached 2 Mtpa before low iron ore prices forced the mines closure. Continuing weak market economics and the civil war prevented redevelopment of the mine until the mining licence was acquired by London Mining in 2006.
London Mining secured an option to acquire the mining rights at the Marampa mine in December 2005. After securing funding, London Mining was able to exercise the option in January 2006 and in September 2006 the Marampa mining lease was assigned to LMC, a 100% subsidiary of London Mining. The Marampa mine recommenced production in December 2011.
London Mining is developing Marampa in stages. The current operation will be expanded to a capacity of 5Mtpa of high quality sinter concentrate in 2013 with the resource able to support a mine life of over 30 years at this rate. A bankable feasibility study outlining an expansion to 9Mtpa was completed in Q4 2012.A PFS was completed in April 2011 for a further expansion to over 16Mtpa of concentrate from the remainder of the Marampa ore body over a 25 year mine life.
Wadi Sawawin - Saudi Arabia
London Mining is to recieve a direct interest of 25% in the Wadi Sawawin project through its joint venture partner in the project National Mining Company (NMC). NMC holds the historical exploitation licence for the Wadi Sawawin project and three adjacent exploration licences. This agreement supersedes the previous agreement whereby London Mining held a 50% interest in a joint venture company, Saudi London Iron Limited, into which the licences were going to be transferred. Upon closing London Mining will receive shares equal to 25% of the issued share capital of NMC.
Greenland
56,452 inhabitants in Greenland
47,461 living in towns
8,991 living in villages
Ethnic composition
Greenlanders – 88% have at least one parent born in Greenland
Danes and other foreigners – 12% are born in Denmark or other parts of the world
Financial analysis
Two pricing scenarios were considered in the study. The base case scenario considers the sale of 5Mtpa of low sulphur pellet feed into Europe and 10Mtpa of higher sulphur product into China with a more conservative case assuming the sale of all products into China. Long term market study and price forecasts were undertaken by Raw Materials Group (“RMG”). RMG assume a conservative premium of USD3 per Fe unit above benchmark with freight costs of USD34/wmt for capsize shipping to China and USD9/wmt into Europe. Three scenarios were considered for the purposes of financial modelling. The base case scenario assumes a 10 year mine life and pricing based on sales of product into both Europe and China. Two further scenarios were considered both incorporating Inferred resources into the mine able resource to achieve a 15 year mine life. One of these scenarios assumed the sale of all products into China.London Mining ("London Mining" or the "Company") announces that China Global Mining Resources Limited ("CGMR"), a subsidiary of the China Global Mining Resources (BVI) Limited joint venture (“JV”) which is held 50:50 with Wits Basin Precious Minerals Inc (“Wits Basin”), has received a claim regarding the payment of the deferred consideration for the purchase of the Sudan processing plant. The claim is to be determined through arbitration. CGMR is in discussions with the sellers of the plant regarding this claim and a resolution (either by agreement of through arbitration) is expected in the next 6 months. The Sellers have no legal or commercial recourse to London Mining or any subsidiary other than the CGMR JV with respect to this claim.
London Mining has total iron ore resources of 2.2 billion tonnes with targeted production of over Tampa of high grade concentrates planned from its projects in Sierra Leone, Greenland and Saudi Arabia. Our strategy is to provide a viable alternative to the diversified miners and upstream integration by selecting assets with unique competitive advantages and high margin potential in countries with a national interest in mining.
For example:Marampa (Sierra Leone) has a short lead time to production and is located in a region of significant geological existentialism (Greenland) will produce a high quality magnetite concentrate Wadi Saginaw (Saudi Arabia) benefits from a low energy costs and a significant supply gap in the Middle East and North Africa region
Sierra Leone
The Marampa mine is located 125km by road north-east of Freetown and 40km by dedicated haul road from tidewater at the Thofeyim river terminal.The Marampa deposit was first discovered in 1926 and open pit production was commenced by the Sierra Leone Development Company (“Delco”) and William Baird between 1933 and 1975. By the 1960’s iron ore production had reached 2 Mtpa before low iron ore prices forced the mines closure. Continuing weak market economics and the civil war prevented redevelopment of the mine until the mining licence was acquired by London Mining in 2006.
London Mining secured an option to acquire the mining rights at the Marampa mine in December 2005. After securing funding, London Mining was able to exercise the option in January 2006 and in September 2006 the Marampa mining lease was assigned to LMC, a 100% subsidiary of London Mining. The Marampa mine recommenced production in December 2011.
London Mining is developing Marampa in stages. The current operation will be expanded to a capacity of 5Mtpa of high quality sinter concentrate in 2013 with the resource able to support a mine life of over 30 years at this rate. A bankable feasibility study outlining an expansion to 9Mtpa was completed in Q4 2012.A PFS was completed in April 2011 for a further expansion to over 16Mtpa of concentrate from the remainder of the Marampa ore body over a 25 year mine life.
Wadi Sawawin - Saudi Arabia
London Mining is to recieve a direct interest of 25% in the Wadi Sawawin project through its joint venture partner in the project National Mining Company (NMC). NMC holds the historical exploitation licence for the Wadi Sawawin project and three adjacent exploration licences. This agreement supersedes the previous agreement whereby London Mining held a 50% interest in a joint venture company, Saudi London Iron Limited, into which the licences were going to be transferred. Upon closing London Mining will receive shares equal to 25% of the issued share capital of NMC.
Greenland
56,452 inhabitants in Greenland
47,461 living in towns
8,991 living in villages
Ethnic composition
Greenlanders – 88% have at least one parent born in Greenland
Danes and other foreigners – 12% are born in Denmark or other parts of the world
Financial analysis
Two pricing scenarios were considered in the study. The base case scenario considers the sale of 5Mtpa of low sulphur pellet feed into Europe and 10Mtpa of higher sulphur product into China with a more conservative case assuming the sale of all products into China. Long term market study and price forecasts were undertaken by Raw Materials Group (“RMG”). RMG assume a conservative premium of USD3 per Fe unit above benchmark with freight costs of USD34/wmt for capsize shipping to China and USD9/wmt into Europe. Three scenarios were considered for the purposes of financial modelling. The base case scenario assumes a 10 year mine life and pricing based on sales of product into both Europe and China. Two further scenarios were considered both incorporating Inferred resources into the mine able resource to achieve a 15 year mine life. One of these scenarios assumed the sale of all products into China.London Mining ("London Mining" or the "Company") announces that China Global Mining Resources Limited ("CGMR"), a subsidiary of the China Global Mining Resources (BVI) Limited joint venture (“JV”) which is held 50:50 with Wits Basin Precious Minerals Inc (“Wits Basin”), has received a claim regarding the payment of the deferred consideration for the purchase of the Sudan processing plant. The claim is to be determined through arbitration. CGMR is in discussions with the sellers of the plant regarding this claim and a resolution (either by agreement of through arbitration) is expected in the next 6 months. The Sellers have no legal or commercial recourse to London Mining or any subsidiary other than the CGMR JV with respect to this claim.