London Mining (LM) saw a considerable year-on-year increase of 250% in third-quarter iron ore concentrate output from its Marampa mine in Sierra Leone to 948,000 wet mt, according to the company's production report.
However, compared with the second quarter output at the mine was down 1.6% due to seasonal effects.
Sales for the quarter stood at 890,000 wmt, up fourfold on the year. The company said the performance demonstrated "improved logistics through the wet season with the additional barging capacity now in operation." However, as with production, sales fell 12.2% compared with the second quarter.
The plant upgrade to 5 million dry mt/year is on on track and full-year production is expected to be 3.6 million-3.9 million wmt (3.3 million-3.6 dmt), the company said. Sales are expected to be 3.9 million-4.1 million wmt.
The company's Life of Mine Study completed in September demonstrated low capex to expand to a 6 million dmt/year operation for "over 40 years" with an average cost of $29-42/wmt/year.
As previously announced LM received an Exploitation Licence for the Isua Project in Greenland in October, within which LM "has agreed to incorporate a royalty structure with the Government of Greenland."
LM has 3.6 million mt of ore assigned to offtake agreements with Vitol and Glencore, but with the new expansion some 2.5 million wmt will be available for sale on the open market.
