Askaf iron-ore project, Mauritania
Name and Location
Askaf iron-ore project, Mauritania.
Client
Sphere Minerals, a subsidiary of Glencore.
Project Description
The project has the potential to create a 7.5-million-tonne-a-year opencut mine.
Net Present Value/Internal Rate of Return
Not stated.
Value
$900-million.
Duration
The project has been delayed. The project was initially slated to start in 2017.
Latest Developments
Sphere Minerals has executed an exclusive option to Al Rawda Resources to buy an 80% interest in its Askaf project.
The agreement will result in Al Rawda paying $10-million in cash, along with a life-of-mine royalty of 2.5% on the revenue generated at the project.
The cash consideration will be payable in three tranches, with the first tranche due on the completion of transaction documents, the second on the decision to mine and the third payment on the start of production.
Al Rawda will have three months in which to undertake due diligence and decide on whether it will exercise the option.
A continued decline in the iron-ore price prompted Sphere in 2014 to delay plans to develop the Askaf project, originally scheduled to start production in 2017.
Sphere Minerals delayed the development of the project as it initiated a review of the project amid of the continued decline in the price of iron-ore.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
The project has been delayed.
Contact Details for Project Information
Sphere Minerals, tel +61 8 9 322 5222, fax +61 8 9 322 5444 or email info@sphereminerals.com.au.
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