London Mining

Iron Ore Overview

London Mining has total iron ore resources of 2.2 billion tonnes with targeted production of over 30Mtpa 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 potential
• Isua (Greenland) will produce a high quality magnetite concentrate that can be blended with hematite ores from Wadi Sawawin
• Wadi Sawawin (Saudi Arabia) benefits from a low energy costs and a significant supply gap in the Middle East and North Africa region

Sierra Leone - Marampa

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.

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 two phases. Phase 1 is in production and will be expanded to produce 5Mtpa of sinter concentrates from a blend of tailings from previous operations and soft highly weathered ore. A bankable feasibility study outlining an expansion to 9Mtpa will be completed in Q3 2012.

A PFS has been completed for a  Phase 2 expansion which will produce over 16Mtpa of concentrate from the remainder of the Marampa ore body over a 25 year mine life.

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Saudi Arabia - Wadi Sawawin

The Wadi Sawawin Project located in the north-west corner of Saudi Arabia, 125km from Tabuk and 60km from the Red Sea port of Duba. Wadi Sawawin is of strategic and economic importance to Saudi Arabia as it will provide a domestic source of Direct Reduction (“DR”) pellets for use in the DRI steel plants which account for 90% of steel production in the Middle East and North African region. 

As announced on the 23 November 2011, London Mining’s partner in the Wadi Sawawin Project, National Mining Company (“NMC”) has signed an agreement with STX Heavy Industries (“STX”) to conclude the pre-construction engineering design and continue the programme of assisting arranging the full financing for the Wadi Sawawin Project in Saudi Arabia. London Mining will work with STX to undertake the final pre-construction design and procurement preparation.

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Greenland - Isua

Isua is located 150km Northeast of Nuuk and 100km from a proposed deep seawater port. Isua will produce a premium quality 70% Fe pellet feed concentrate with low impurities and benefits from its position in the warmer south-west corner of Greenland which allows for year round shipping.

In March 2010, London Mining reported a JORC resource estimate completed by Snowden Mining Industry Consultants of 951Mt at 36% Fe. A PFS for a 10Mtpa open pit and processing operation from an initial 451Mt open pit mine plan was completed by SNC Lavalin in June 2010. The June 2010 PFS considered a 10Mtpa operation with a 21 year initial mine life and estimated capital expenditure of USD 1.7 billion. In February 2011 London Mining released the results of a 15Mtpa scoping study completed by SNC Lavalin.

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Coal - Coloumbia

London Mining made its first coal acquisitions in August 2008 as part of an overall strategy to develop a complimentary metallurgical coal supply for its iron ore production and in doing so take advantage of the robust long-term outlook for thermal coal. The Company owns 100% of London Mining Colombia, a coking coal developer in Colombia.

London Mining is now constructing coke ovens with a capacity of 200ktpa in the Boyaca region of Colombia, a region with significant local production of high quality coking coal. Commissioning of the coke ovens has commenced with first production expected in January. London Mining continues to expect to reach the 200ktpa coke production run rate in Q3 2012. London Mining is also in a number of discussions with port and transport companies regarding short and medium term export arrangements.