Bellzone Mining reports problem with first JV iron ore shipment

Shares in Bellzone Mining took a hit on Thursday after it reported that the transhipping system on the vessel carrying its first shipment of iron ore from the Forecariah joint venture operation in the Republic of Guinea, West Africa, failed to perform as had been expected.

Shares in Bellzone Mining took a hit on Thursday after it reported that the transhipping system on the vessel carrying its first shipment of iron ore from the Forecariah joint venture operation in the Republic of Guinea, West Africa, failed to perform as had been expected.

The shipment had been announced on December 27th.

The firm said that although the shipment was made as planned, there was a problem with the transhipping performance, and said this will be "addressed by chartering geared ships capable of loading from the barges while work continues to redesign and re-engineer the loading and offloading configuration".

Bellzone Chief Executive Officer Glenn Baldwin said: "The operations had produced and moved enough ore to Konta to fill a large Cape sized vessel by the beginning of December 2012. However, we have been informed that the transhipping system did not perform as expected."

The ship left the coast off Konta Port in Guinea carrying around 63,000 tonnes of iron ore.

Baldwin continued: "We expect the re-engineering process to take at least six months. The use of geared ships is expected to increase the shipping costs.

"The JV is fully funded and has the flexibility to adjust production and shipping to be self-sufficient from a cash perspective and optimise margins.

"The sailing of this vessel demonstrates the fact that Bellzone has the capacity, with [its JV partner] China International Fund and with the support of the government of Guinea, to build roads, a port and a mine in Guinea; a country which is now once again an iron ore producer."

The group added that the JV expects to be able to release its Joint Ores Reserves Committee (JORC) statement in mid-January.

"The JV will use the Maiden JORC statement to develop a detailed production and shipping schedule in Q1, 2013 and we will release this to market in due course," Baldwin added.

NR

Recommended

The top funds to invest in
Funds

The top funds to invest in

Investors continue to favour passive funds in April though figures reveal an actively managed money market fund also caught their eye. We look at wher…
3 May 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
20 Apr 2023
Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
28 Mar 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023

Most Popular

Nationwide to give £100 cash boost to customers
Personal finance

Nationwide to give £100 cash boost to customers

Nationwide Building Society is giving customers £100 as it reinvests profits. Dubbed the Nationwide Fairer Share scheme, we look at who is eligible.
22 May 2023
The best one-year fixed savings accounts - May 2023
Savings

The best one-year fixed savings accounts - May 2023

You can now earn 5% on 1 year fixed savings accounts - the best rate seen in 14 years. We have all the latest rates available now.
26 May 2023
Energy price cap slashed by 17% ‒ millions to see lower energy bills
Energy

Energy price cap slashed by 17% ‒ millions to see lower energy bills

Typical households on default energy tariffs will see their energy bills drop by £426 a year following today's energy price cap drop.
25 May 2023