Advertisement

African Minerals ramps up production in Sierra Leone

African Minerals is making significant progress on its projects including the expansion of its existing rail and port infrastructure in Pepel, Sierra Leone.

African Minerals is making significant progress on its projects including the expansion of its existing rail and port infrastructure in Pepel, Sierra Leone.

In an expansion update Tuesday the company announced it was ramping up production in Sierra Leone. The organisation said it intends to expand the works at Pepel rather than develop a new port at Tagrin Point.

Advertisement - Article continues below

Afrian Minerals is also increasing production at the Tonkolili ore mine, targeting saprolite hematite concentrate production of up to circa 35Mtpa from 2016.

The revised plan is estimated to total $2bn in capital expenditure, with cash costs similar or lower than the current direct shipping ore phase. The company expects substantial capital savings of $1bn compared to its previous expansion plan as it will reduce risks and lower social and environmental impact.

Chief Executive Officer, Keith Calder, said: "We have made good progress with value engineering and optimisation in our Tonkolili mine expansion strategy. While our strategy regarding the mine and plant is mostly unchanged, we have now decided to leverage our existing rail and port infrastructure at Pepel to achieve the expanded export tonnage. This will significantly reduce capital costs, and de-risk the project's delivery, whilst at the same time reducing social and environmental impacts.

"This approach will provide a significantly better value, capital efficiency and risk proposition for all of our stakeholders."

The company has also agreed to raise its restriction on share ownership from 12.5% to 15% following a request from China Railway Minerals.

African Minerals will, however, limit China Railway's voting shares at 12.5%, with additional shares purchased to be voted at shareholder meetings by an independent non-executive director.

"We welcome this strong support from one of our cornerstone shareholders and partners as we ramp up production to a sustainable level of 20Mtpa in Q2 2013, and we believe this sends a strong signal of the underlying value of the Company to the market," Calder said.

RD

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
The end of the bond bull market and the return of inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
How can markets hit new record highs when the economy is in such a mess?
Stockmarkets

How can markets hit new record highs when the economy is in such a mess?

Despite the world being in the midst of a global pandemic, America's Nasdaq stock index just hit an all-time high. And it's not the only index on a bu…
3 Jul 2020