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Sphere signs rail and port deal for Askaf

Sphere signs rail and port deal for Askaf

Photo by Reuters

5th June 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Sphere Minerals has signed an 18-year rail and port agreement with the Societe Nationale Industrielle et Miniere de Mauritanie (SNIM) for its Askaf project, in Mauritania.

The binding term sheet would allow Sphere to transport iron-ore from the Askaf project on port and rail facilities owned by SNIM.

Sphere told shareholders that the port and rail service would be based on the internationally accepted depreciated optimised replacement cost methodology, with a take-or-pay component.

Sphere recently started construction of its $900-million Askaf project, which was expected to be in production by 2017. The Askaf North deposit has a total resource of about 404-million tonnes, grading 36% iron, and was expected to deliver about seven-million tonnes a year.

Edited by Creamer Media Reporter

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