Objectives and strategy
London
Mining’s objective is to identify, develop and operate scaleable mines to
become a mid-tier supplier to the global steel industry. The Group’s principal
assets have actual or anticipated production and the ability for further
expansion through either upgrading resources or acquisition.
The
Company is currently undertaking resource definition programmes to ensure that
all of these principal projects will have JORC standard resources in accordance
with the timeframes set out in this document.
The
Directors believe that the total iron ore concentrate production capacity of
the Group’s four principal projects (on a 100% basis) has the potential to rise
from 0.4Mtpa in 2009 to 14Mtpa in 2014 and to in excess of 20Mtpa in 2018:
•
Sierra Leone – sinter feed : 1.5Mtpa in 2011 to in excess of 3Mtpa in 2013
•
Saudi Arabia – DR pellets : 5Mtpa in 2013 to 10Mtpa in 2017
•
Greenland – DR pellet feed : 5Mtpa in 2014 to 10Mtpa in 2018
•
China – magnetite concentrate : 0.4Mtpa in 2009 to 1Mtpa in 2011
(Source:
Company estimates)
The
strategy of London Mining is to focus its activities on deliverable iron ore
projects, where the key features are scaleable production, financing
opportunities and a clear route to market. The ability to accelerate projects
through to efficient producing mines, utilising its experienced technical and
operating team, is an important part of the Company’s strategy.
The
Group’s principal projects range from late stage exploration projects, through
a brownfield site to an under-optimised producing mine, all of which the
Company intends to develop to be efficient producing mines. All of the Group’s
principal assets have an ore body and logistics solution which allow for production
to be initiated and/or expanded in phases. The logistics solution primarily
focuses on workable port locations with available land and with the ability to
load, either directly or via transhipment, to ocean going vessels. The port
locations are all within approximately 100km of the proposed
mine site for all of the existing principal projects with the exception of
China, where the product is largely sold at the mine gate, hence transportation
costs are low. Currently, London Mining’s target markets are the MENA countries
and China, and all of the principal assets are able to supply one or both of
these markets.
The
Company has an experienced management and technical team. The iron ore assets
are managed by in country project directors aided by a technical services team
headed by the Company’s Chief Operating Officer, Luciano Ramos and comprising
seven people with expertise in geology, metallurgy and mine engineering. The
technical services team is focused on delivering low-cost, fast track solutions
to production. The iron ore assets are overseen by the Company’s management
team in London, which focuses
on head office functions including funding, off-take agreements and corporate
development opportunities.
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