Guinean Congress approves Mining Agreement for Nimba iron ore project
2019-12-05 17:15:31 [Print]
Guinean Congress approved the Mining Agreement for Nimba iron ore project (the project) on December 3.
SMFG, a joint venture set up by France-based ORANO, Australia-based BHP and US-based Newmont Goldcorp, won the mining right of the project in 2008, however, it hasn't taken any substantial actions after a delay of 11 years.
In August 2019, ORANO, BHP and Newmont Goldcorp withdrew from the project and sold all equity to the US company High Power Exploration.
On September 5, 2019, Ministry of Geology and Mineral of Guinea signed the Mining Agreement for the project with High Power Exploration. The main new provisions in the revised mining agreement include a free 10 percent share for Guinea government and no dilution. Guinea's government won two seats on the board of Nimba iron ore company.
Nimba's iron ore will be exported through Liberian port. Guinean government will levy a new and additional mineral resource fee of $0.825-$2 per ton depending on the international market price.
The proven reserves of the mine are 300 million tons and the potential reserves are about 1 billion tons, with an average grade of 62%.
High Power Exploration plans to invest about $1bn in mining infrastructure. The infrastructure projects would be built by three phases, with the first phase mining 1 million tons of iron ore annually, the second increasing annual production to 5 million tons, and the third increasing annual production to 20 million tons.
Given the high iron ore prices in the international market, High Power Exploration tries to take the advantage to produce and make profit as soon as possible. Therefore, the first phase of simple infrastructure will be completed within 12 months after obtaining the mining license. The first phase will export 5 million tons of iron ore a year. The mining and construction for the second phase will be developed as the same time.
SMFG, a joint venture set up by France-based ORANO, Australia-based BHP and US-based Newmont Goldcorp, won the mining right of the project in 2008, however, it hasn't taken any substantial actions after a delay of 11 years.
In August 2019, ORANO, BHP and Newmont Goldcorp withdrew from the project and sold all equity to the US company High Power Exploration.
On September 5, 2019, Ministry of Geology and Mineral of Guinea signed the Mining Agreement for the project with High Power Exploration. The main new provisions in the revised mining agreement include a free 10 percent share for Guinea government and no dilution. Guinea's government won two seats on the board of Nimba iron ore company.
Nimba's iron ore will be exported through Liberian port. Guinean government will levy a new and additional mineral resource fee of $0.825-$2 per ton depending on the international market price.
The proven reserves of the mine are 300 million tons and the potential reserves are about 1 billion tons, with an average grade of 62%.
High Power Exploration plans to invest about $1bn in mining infrastructure. The infrastructure projects would be built by three phases, with the first phase mining 1 million tons of iron ore annually, the second increasing annual production to 5 million tons, and the third increasing annual production to 20 million tons.
Given the high iron ore prices in the international market, High Power Exploration tries to take the advantage to produce and make profit as soon as possible. Therefore, the first phase of simple infrastructure will be completed within 12 months after obtaining the mining license. The first phase will export 5 million tons of iron ore a year. The mining and construction for the second phase will be developed as the same time.
