JOHANNESBURG (miningweekly.com) – Aim-listed Sable Mining on Friday confirmed that it was in “advanced discussions” with the governments of Liberia and Guinea regarding its Mount Nimba iron-ore project, in south-east Guinea.
Media reports stated that the company was expected to soon sign a $1.3-billion, 25-year infrastructure development agreement with Liberia for the transshipment of Guinean-mined ore through Liberia.
The reports quoted Liberia National Investment Commission executive director George Gyude Wisner as telling journalists at a media briefing that Sable would invest $300-million over the first five years of the infrastructure development project.
It would invest the remaining $1-billion over an ensuing 20-year period.
“The agreement will serve as a boost to Liberia, as the company will rehabilitate and expand the existing rail corridor from Yekepa to the Port of Buchanan in line with the third party access rights between the government and [steel producer] ArcelorMittal,” Wisner was quoted as saying.
He said Sable would also build a new railway line from Guinea through Tokadeh to Yekepa to link with the existing railway in Yekepa.
As at April 2014, the Nimba iron-ore project had a Joint Ore Reserves Committee-compliant resource of 181.8-million tons at a grade of 58.8% iron. A preliminary feasibility study determined that it would cost $299.3-million to develop the mine to production stage.