African Minerals Ltd’s Chairman Frank Timis has expressed interests in acquiring Marampa mine through his private company. This is after the mine recorded a peak production of 2.5mtpa before it was caused to close down due to low iron ore prices.
Timis confirmed they have been able to conclude a US$ 20m funding agreement with Australia’s Cape Lambert Resources Ltd to see through acquiring of the mine.
Investec analysts also commented on the news and pointed out that African Minerals were the most possible acquirer of the Marampa mine, due to the fact that it has lot of significance in the region.
African Minerals, like London Mining, has experienced a 40 percent drop in the iron ore prices.IO62-CNI=SI and disruptions due to the Ebola outbreak.
The Marampa mine is a large iron mine located in central Sierra Leone in the Northern Province. Marampa represents one of the largest iron ore reserves in Sierra Leone and in the world having estimated reserves of 1bn tonnes of ore grading 32% iron metal. Recent reports indicated that Ebola outbreak could have significant effects on production at the mine, but London Mining indicated they had taken initiatives to avoid this.