At the Company's AGM to be held later today, Sir Nicholas Bonsor, the Deputy Chairman of London Mining, in the absence of the Chairman, will make the following statement to shareholders present, in line with London Mining's 10 May 2012 Production Report and Interim Management Statement.
Sir Nicholas Bonsor: "2012 has started well for London Mining. Turning to each of our assets, at Marampa, we are pleased to say that the plant is successfully processing tailings and weathered ore to a consistent high quality and we are on track to achieve our full year target of 1.5Mtpa of iron ore concentrate. The logistics from mine to ship have been proven to work as designed and over the first quarter we produced 300,000 dry metric tonnes of iron ore and shipped over 230,000 dry metric tonnes to Europe and China. This was shipped in five Supramax vessels, four of which went to China and one to Europe. Since the end of the quarter, we have successfully reached an average run rate of 4,300 tonnes per day which is in line with our ramp up plans and puts us firmly on track to reach the 2012 production target.
Expansion works at the first plant continues apace, and we have commenced works for the second plant which when combined together will ensure we continue to grow capacity at Marampa and reach our production targets of 1.5Mt in 2012, 4.2Mt in 2013 and 5Mt in 2014. Work on the Bankable Feasibility Study for a further expansion to 9Mtpa is expected to be completed in the third quarter of this year, with completion of the Environmental and Social Impact Assessments expected after that sometime in the fourth quarter.
In Colombia, construction of the coke ovens continues although we were severely hampered by the unexpected rains caused by La Nina. None the less we produced 5,800 tonnes over the quarter. We have caught up some lost ground and we continue to aim for our target of 200,000 tonnes production capacity in the first phase. We are also exploring and undertaking feasibility studies on nearby coking coal concessions.
Briefly turning to Isua, as we announced on 29 March, we have now completed the BFS for a 15Mtpa operation. The BFS defined a three year construction period to begin producing 70% Fe premium grade iron ore pellet feed with a payback period of 3.5 years. Since the BFS, we have commenced the permitting process.
To realise our growth plans we know we must continue to attract and retain talented people and also ensure that the communities and countries in which we operate are able to see tangible and long-lasting benefits from our activities. We are particularly proud to provide employment and training for over 2,000 Sierra Leoneans. 2012 is significant as we will contribute directly to the economy of Sierra Leone through payments of royalty and taxes to the Government of Sierra Leone; and indirectly through our social development royalty, local employment and local supply chain initiatives.
As we enter a new phase of operations, construction and development we are ever more appreciative of the need to minimise the impact of our operations to the surrounding environment and communities and to keep our employees safe. We formed a Health, Safety and Environment committee in 2011, we aim to monitor, report and improve on health and safety performance over the coming year. We continue to aim for zero harm and are pleased to report zero fatalities in 2011.
We were able to strengthen our Board significantly in 2011 with the appointment of Colin Harris, Benjamin Lee and Luciano Ramos. Colin has been appointed as an independent Non-Executive Director and brings extensive mining experience to London Mining, as an exploration geologist with over 40 years' industry expertise. Benjamin and Luciano have been vital components of London Mining's success since joining the Company, including developing and disposing of our asset in Brazil as well as contributing to the financing, construction and ongoing operation of Marampa. Their appointment ensures that the Board is able to benefit fully from their insights and expertise.
The people, high quality assets and sound financial footing we now have in place will ensure 2012 will be a year of consolidation for future growth for London Mining as we continue to deliver our production ramp-up and finalise our long term growth plans. We are proud of what we have achieved at Marampa and our other assets in 2011. The Board would like to congratulate Graeme and his team for their hard work this year and for delivering on our strategic goals and moving London Mining from a developer to a producer as we build towards a FTSE listing."
London Mining is focused on identifying, developing and operating mines to become a mid-tier supplier to the global steel industry. London Mining is producing high specification iron ore from its Marampa mine in Sierra Leone and developing two other iron ore mines in Greenland and Saudi Arabia as well as a coking operation in Colombia. All London Mining's assets have deliverable production with potential for expansion. The Company listed on AIM in London on 6 November 2009. It trades under the symbols LOND.L (Reuters) and LOND LN (Bloomberg). More information about London Mining can be found at www.londonmining.co.uk.
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