LONDON MINING - MARAMPA BARGING AND TRANSHIPMENT CONTRACTS SIGNED
(Thomson Reuters ONE) -
* barging and transhipment contracts signed for Phase 1
* Higher realised pricing expected as result of transhipment vessel
availability in Q1 2012, six months earlier than previously envisaged
* Phase 1 FOB costs estimated at USD30/t FOB at 3.6Mtpa run rate
* Initial operating costs increased as a result of higher fixed cost structure
to allow quick ramp up to 3.6Mtpa
* Project remains on track for commissioning in Q3 2011 with first shipment in
Q4 2011
Commenting on the agreements, CEO Graeme Hossie said, "These arrangements secure
transhipment capacity for the export of premium sinter feed concentrate from
Sierra Leone this year and enable the use of Capesize vessels from Q1 2012.
Importantly this solution can be easily scaled up as we expand to accommodate
our full production capacity plan of 16Mtpa from the Marampa mine."
London Mining today announces that it has concluded the final contract to
provide a full transhipment solution for its entire Phase 1 production at
Marampa. The agreement secures tugs, barges and a transhipment vessel capable of
loading a range of vessels up to Cape class at a rate of 20,000t per day and
allows for an increased rate of 60,000t per day for further expansions. The
agreements will provide barging capacity in time for first shipments from
Marampa, due in Q4 2011, with the transhipment vessel in place by Q1 2012, six
months earlier than previously envisaged.
Two agreements have been finalised: Lamnalco Limited will provide barging
capacity and operation and Seabulk Systems Inc. will provide and operate an
offshore transhipment vessel. Ausenco Sandwell is advising London Mining on all
aspects of the transhipment operation, including bathymetry, dredging and fleet
selection using a dynamic simulation of the operation as well as the effects of
tides, climate and wave action on loading.
The current schedule assumes barging operations are required 100 days per year
with shipments of 2 million wet metric tonnes ("wmt") and 200 days per year once
Phase 1 reaches maximum production capacity of 3.6Mt (4 million wmt). This is
based on a loading and transhipment capacity of 20,000t per day. Wave and
climate studies conducted at several potential offshore transhipment sites have
shown that down time related to poor weather is minimal. Down time is almost
entirely restricted to the months of June, July, August and September when
seasonal wave action is conservatively estimated to result in reduced capacity
of around 90% compared with the rest of the year. An expansion to a floating
180,000 stockpile transhipment vessel capable at loading at 60,000t per day is
planned for further expansions.
The new agreement has positive implications for the received price for Marampa
concentrate and thus expected margins per tonne due to a significant reduction
of freight costs as the project expands and moves from loading smaller Handymax
vessels to Capesize vessels. This is expected within two months from initial
start up. London Mining would benefit from lower freight costs if concentrate
was sold to Europe. Current estimates for self-loading Supramax vessels from
Freetown to Qingdao, China, are USD45/wmt whereas freight costs for Capesize
vessels are USD25/wmt. The equivalent costs to Rotterdam would be USD20/wmt for
Supramax and USD10/wmt for Capesize.
To allow for rapid expansion to 3.6Mtpa and beyond, a decision was taken to
install seaborne logistics and incur and maintain certain overhead costs. This
involves contracting barging capacity on a yearly fixed cost arrangement, and
maintaining fast-track construction capability and continuity. The operating
cost is expected to remain at around USD30/t FOB at the optimum 3.6Mt run rate.
As previously reported, a potential delay of around six weeks to the overall
project schedule was experienced as a result of congestion issues at the
Freetown Port which coincided with Sierra Leone's 50th Anniversary of
Independence celebrations, and as a result of the delay London Mining has taken
measures to expedite construction including the use of a double shift to
maintain the project's critical path. Primarily as a result of the delay to the
project, there has been an increase to estimated capital expenditure for Phase
1a of USD9m to USD145m. The project remains fully funded to 3.6Mtpa of capacity.
Construction of the operations continues in line with previous guidance with the
completion of the final section of haul road expected in July, commissioning
expected in Q3 2011 and first shipment in Q4 2011.
Pictures of the progress at Marampa can be found on London Mining's website,
www.londonmining.co.uk.
For more information please contact:
London Mining Plc +44 207 201 5000
Graeme Hossie, Chief Executive Officer
Rachel Rhodes, Chief Financial Officer
Thomas Credland, Head of Investor Relations
Liberum Capital (Nominated Advisor/Broker) +44 203 100 2000
Clayton Bush/Christopher Kololian
J.P. Morgan Cazenove (Broker) +44 207 742 4000
Adam Brett / Neil Passmore
Brunswick Group LLP +44 207 404 5959
Carole Cable / Daniel Thöle
Crux Kommunikasjon AS +47 97 56 19 59
Charlotte Knudsen
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 three iron ore mines in Sierra Leone, Saudi Arabia and Greenland
as well as an early stage coking coal project in Colombia. All London Mining's
assets have deliverable production with potential for expansion. The Company is
currently listed on the AIM in London and Oslo Axess and trades under the
symbols LOND.L and LOND.NO (Reuters) and LOND LN and LOND NO (Bloomberg). The
Company's shares will be delisted from Oslo Axess on 3 October 2011.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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.
Source: London Mining Plc via Thomson Reuters ONE
[HUG#1526755]
Unternehmensinformation / Kurzprofil:
Datum: 29.06.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 55938
Anzahl Zeichen: 7469
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 323 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"LONDON MINING - MARAMPA BARGING AND TRANSHIPMENT CONTRACTS SIGNED"
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).
