LONDON, Nov 26 (Reuters) - Guinea-focused mining group Sable has signed an memorandum of understanding (MOU) withthe Liberian government, in what it said on Tuesday was a steptowards being allowed to export its iron ore through Liberia'srail and port network.
The company said the agreement would enable due diligenceand third-party negotiations to take place, with the aim ofeventually striking a binding deal for the development and useof Liberia's infrastructure.
Liberia, which neighbours Guinea, has an existing rail linkto the Atlantic and offers a far shorter export route forSable's Nimba iron ore project than the alternative routethrough Guinea. The rail is currently operated by steel majorArcelorMittal, and it is unclear whether the companywould have excess capacity or be willing to share the line.
Sable, whose chairman is the former England cricket playerPhil Edmonds, aims to start production in 2015 and hit 5 milliontonnes per year after that.