ISUA, GREENLAND - PREFEASABILITY STUDY FOR 10MTPA
(Thomson Reuters ONE) -
London Mining, the UK based developer of mines for the steel industry, today
announces the results of a new prefeasibility study for its 100% owned Isua
magnetite project in Greenland. The study considers a 21 year 10Mtpa high-grade
concentrate operation and evaluates the use of a combination of local, European,
North American and Chinese groups to complete construction. The identification
of significant economies of scale and involvement of Chinese groups is
anticipated to deliver significant cost savings.
Isua is located 150km Northeast of Nuuk and 100km from a proposed deep seawater
port. Isua benefits from its position in the warmer south-west corner of
Greenland with shipping possible year round. In March 2010 London Mining
reported a total open pit resource of 951Mt at 36% Fe, which resulted inter alia
in London Mining targeting 10Mtpa production.
Further to the results of the pre-feasibility study for 5Mtpa announced on 25
February 2010, SNC Lavalin has now completed a prefeasibility study for a 21
year operation with a production rate of 10Mtpa. The new study incorporates
budgetary quotes from Sinosteel and China Communications Construction Company to
deliver a total project capital cost of USD1.74Bn with an average operating unit
cost per tonne of concentrate of USD27.13/t (accuracy +/-30%) if a combination
of local, western and Chinese labour is utilised. The large proportion of fixed
cost infrastructure items including port, access road and pipeline results in
Isua achieving greatly reduced capital intensity if a 10Mtpa operation is
considered.
London Mining now intends to seek partners to fund and develop the project. All
necessary base line data collections, advanced field drilling programs,
Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) have
been or will be undertaken to allow completion of a full feasibility study by
the end of 2011 with construction estimated to start in 2012 with first
production at the beginning of 2015. This timeline will be confirmed once
financing has been secured and a construction partner selected.
Additional resource and environmental works have also been planned in this year
including a further 12,000m of drilling for a combined cost of USD10m. Recent
testwork has confirmed that the Isua ore can produce a concentrate with a
specification of 70.2% Fe, 1.9% SiO2, 0.05% Al2O3 and 0.12+/-0.06%S. This
product has potential for application as a premium blast furnace pellet feed for
sale into the European and Chinese steel markets or as a direct reduced pellet
feed for use in HYL type direct reduced iron production in the Middle East.
Graeme Hossie, CEO of London Mining said "We have now shown that Isua has the
technical and economic properties to supply the seaborne market with 10Mtpa of
premium iron ore concentrate for over 20 years. We are particularly excited
about the opportunity to develop further mutually beneficial relationships with
Chinese partners in order to fund and build Isua."
For more information, please contact:
London Mining Plc
Thomas Credland, Head of Investor Relations +44 20 7201 5000
Liberum Capital (Nominated Advisor/Broker)
Clayton Bush/Ellen Francis +44 20 3100 2000
Brunswick Group
Carole Cable/ Daniel Thöle +44 20 7404 5959
The Company's website can be found at www.londonmining.co.uk.
About London Mining
London Mining is focused on identifying, developing and operating scaleable
mines to become a mid-tier supplier to the global steel industry. London Mining
is developing four iron ore mines in Sierra Leone, Saudi Arabia, Greenland and
China as well as a coking coal operation in Colombia. All London Mining's assets
have deliverable production with potential for expansion. The Company listed on
the Oslo Axess on 9 October 2007 and on AIM in London on 6 November 2009. It
trades under the symbols LOND.L and LOND.NO (Reuters) and LOND LN and LOND NO
(Bloomberg).
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1428383]
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
All reproduction for further distribution is prohibited.
Source: London Mining Plc via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 30.06.2010 - 08:01 Uhr
Sprache: Deutsch
News-ID 23212
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 332 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"ISUA, GREENLAND - PREFEASABILITY STUDY FOR 10MTPA"
steht unter der journalistisch-redaktionellen Verantwortung von
London Mining Plc (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
